All Forum Posts by: Jordan Johnson

How does it sound like I don't want to pay? I do have enough to pay the closing costs and down payment but then I won't have anything left and I'm not about to put myself in the position. 

Originally posted by @Rick Pozos:

3.5% of $165k is $5775. Your lender should have told you that you would need more than that to close on the house.  Several months insurance and taxes up front, doc prep, loan origination fees, underwriters fees, title co. closing costs. I dont see how you could think that you could get away with only 5k out of pocket if the seller said they would not contribute to your costs.

Im sorry if it sounds harsh, but again 3.5% of 165k is over $5k.

If you found a different house where the owner was willing to take back a second lien position, that would work.  Maybe there is a program for first time homeowners in your area that will gift you some money or give a second that will get forgiven at a later time.

If you want to do a little creative type of financing, the seller has to be on board. This usually means that the seller is flexible because he/she really needs to get out of the house. 

 That is one of the first things we talked about was how much I wanted to spend on the house right away. I don't know why he didn't mention anything about all the closing costs then. 

@Ryan D. The $5,000 we have for a down payment isn't everything we have in savings. It's just everything we have for the down payment. Thank you for that advice. 

My fiancé and I are buying our first house that will be our primary residence for a couple years then we will rent it. We negotiated with the seller and got the price where we needed it and we have been super excited.... until our loan officer informed us of how much we'll need at closing... 

We agreed to pay $165,000 on the house and will be financing it over 30 years with a FHA loan. We will be putting down 3.5%, so with that and closing costs we're going to need around $12,000. We only have about $5,000 we're avle to put down all together. The seller said he will not pay any of the closing costs unless we figured it into the price of the house. Does he mean he'll pay the closing and we'll pay him that much more in the price of the house so we'll end up paying for it in our mortage?

Also is there any kind of creative financing we could do, to pay the down payment and closing costs, without hard or private money?

How late will the meet up run? I really want to go but I have to work till 5:30. 

Thank yall very much for the reply. I'm very relieved to hear that it is possible. I didn't think to find the exit lender first, that's a great tip. 

I had a plan to buy my first investment property using a hard money loan, rehabbing, then refinancing with a conventional loan based off the ARV. I mentioned this to my realitor and she said that isn't really possible any more because a lot of appraisers got in trouble for over valuing houses and giving bigger loans than the houses were worth. How true is this? I don't think she deals with investors much, she's my fiancées family friend so she insisted on using her. Any help on the subject would be greatly appreciated.

Welcome to BP. That's great you're getting started early. I'm also getting started and live in Houston.

Welcome to Bigger Pockets! I'm new to real estate also so I don't have much advice on the subject just yet. But, I was told by another member, there is a monthly Bigger Pockets meet up here in Houston. Follow @Charles Nguyen for the details for the meet up info.

Yeah that is a little bit of a drive but it will be worth it for the Killens kolaches. 

I actually just listened to a podcast where they suggested listening to them at 1.5x's, I'l definitely l have to try that out.  I also listen to them while I workout. I like to see it as bettering myself physically and mentally and preparing myself for this business venture I'm about to start. 

I don't think we would want to live that far out of Pearland right now. My fiance has two baby nephews and doesn't want to be more than 10 minutes from them so she can spend as much time as possible with them. But we may still look at multis in those areas later down the road when we're looking to purchase more properties.