Notice that nowhere in this story is a real estate agent mentioned. Fortunately.

Question: "I have been offered a tremendous deal &8212; a house that appraises at $364,000 that I can buy for $294,000, with 100 percent financing, and the builder will pay all my closing costs ... I can afford the payment for only six months, and it will take all my savings, but the broker says that I will be able to do a cash-out refinance in six months based on the appraisal and net about $60,000, which will cover the payment for another two years. ..."

Answer: Run as far away as possible, as quickly as possible.

This is a horrific idea, one which hopefully the buyer is smart enough to avoid.

Where to start ...

The property must only be worth $294,000, if the builder is willing to sell it for that amount. The buyer can't afford the payments, which means he or she isn't putting any money aside for taxes or maintenance or insurance, presumably.

The buyer won't be able to pull out any cash from the property for at least two reasons: one, there is a very small chance the property is worth $364,000 - I suppose the buyer could go back to the same lender to see if they'll appraise it again at $364,000; two, even if it did, no reputable bank will allow you to pull out the total amount difference in cash - I think just about any bank would only let you pull out up to 80% of the value of the property.

Why the buyer would even want to get involved is a good question.

More: Beware of new homes selling at bargain prices: What sounds like a great deal is more like trouble - By Jack Guttentag, Inman News, by way of The Boston Globe