Offer cash at closing. Most prom notes are double the amount that a lender will take if it's cash at closing. There could be many reasons why they are asking you for a promissory note. 1) do you have MI on the loan. If so, the MI company needs to cover it's deductible. Most NH housing loans have MI, so many times a NH housing loan will seek cash or a prom note at closing. 2) is the lender seeing some amount of money on hand?? If so, they will look for a prom note at closing 3) do you have a considerable hardship?? If the lender feels you don't have a strong enough hardship, they'll ask for a prom note at closing.
Keep in mind prom notes are UNSECURED notes, and usually don't have interest. My suggestion would be to start with a cash offer at closing. Even $500 is an attempt. We've had luck offering even less than half of what they wanted in the form of a promissory note.
Maryann Little, VP Mitigation