LOKING FOR ADVICE.

Flipper/Rehabber · Miami Dade County, fl. · Member since 2015 · 45 posts · 5 votes

Good morning BP family,,

I am looking for advice on this new activity for my new purchase: I was approved by a funding company for $250,000 in the following terms:

loan balance $ 250.000

Interest rate 3%

loan term 30 years

Number of payments 360

Monthly loan repayment $1.054

Cumulative payments $ 379.443

Total interest paid $ 129.343,60

To receive that deposit in my account I must pay a fee for 1125 to them to make it effective,

My question is: is that normal to be able to receive it?

Thank you for any advice you can give me, I'll be attentive.

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Joe Biscaha

Realtor · Miami, FL · Member since 2019 · 46 posts · 22 votes

Thanks for sharing and checking, thats what the form is for. As others have mentioned this doesn't sound legit.

If this is a legitimate loan you should be able to ask for a Loan Estimate from the loan officer. I doubt you are getting a 3% rate.

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Jaron WallingPro Member
Rental Property Investor · Indianapolis, IN · Member since 2018 · 4k+ posts · 4k+ votes
3y
@Sergio Moratto I can guarantee you're not getting a 3% interest rate. I'd find out exactly who this "funding company" really is. Conventional income based loans, with good credit, from a local lender is double that right now.
Is this a first time home buyer program?
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Steve Vaughan
Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
3y
Quote from @Sergio Moratto:

Good morning BP family,,

I am looking for advice on this new activity for my new purchase: I was approved by a funding company for $250,000 in the following terms:
loan balance    $ 250.000
Interest rate     3%
loan term 30 years
Number of payments    360
Monthly loan repayment     $1.054
Cumulative payments $ 379.443
Total interest paid $ 129.343,60

To receive that deposit in my account I must pay a fee for 1125 to them to make it effective,

My question is: is that normal to be able to receive it?

Thank you for any advice you can give me, I'll be attentive.

This is a scam for sure. Terms too far below market are fake. How are they able to offer you 3% in a 6% world?
Paying up front for anything besides the appraisal, after you get a house under contract, is a scam!
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Christopher H.
Lender · Okanagan, BC · Member since 2017 · 105 posts · 77 votes
3y
Good job doing your due diligence... There is a few red flags here.
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Dennis Nguyen
Real Estate Agent · Seattle, WA · Member since 2017 · 150 posts · 80 votes
3y
It sounds too good to be true. Get another quote from a local lender and you'll see how large of a difference it is.
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Joe Biscaha
Realtor · Miami, FL · Member since 2019 · 46 posts · 22 votes
3y
Thanks for sharing and checking, thats what the form is for. As others have mentioned this doesn't sound legit.
If this is a legitimate loan you should be able to ask for a Loan Estimate from the loan officer. I doubt you are getting a 3% rate.
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Sergio Moratto
OP
Flipper/Rehabber · Miami Dade County, fl. · Member since 2015 · 45 posts · 5 votes
3y
Thank you very much for your invaluable information, thanks to: Jaron Wallings, Steve Vaughan, Christopher H, Denis Nguyen and Joe Biscaha for being here as advisors on the bigger Pockets Family. Thank you.
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