I just got a file on a loan that closed last week, it was a contract for deed that was refinanced, The loan officer prepared it as a purchase, this part I agree with, what I am having a problem with is there was cash back to the borrower. I did not think you could do this on a purchase. And to make the whole thing even more confusing, the purchase was for the land only, on the land however sits a mobile home not owned by the buyer but the buyers mother, but she does not live in it, the buyers of the land do, and she (the mother) gave us security interest in it for additional collateral. Theappraised value included the mobile home. The appraised value with the land and the mobile home came to $65,000.00 and the loan was for $40,000.00, $23,000 went to the pay off of the contract for deed with the remainder going to the buyers. Is this permitted on a purchase.

It's not OK if you are in Texas! That would be a home equity loan, and should have been documented as such. In other states, though - I don't see why you couldn't include some cash back. The rest of the situation needs some further evaluation.