All Forum Posts by: C L.

Duh !!! Blame it on the brain fart.

I doubt it too. But unless there IS something "special" they are offering with this 10% down, BOA has had 10% down investor programs on my rate sheets for years - for anyone wanting to pay the obnoxious rates.

But I would tend to believe BOA will give a buyer hell in getting such a loan closed. In the end, they will find some reason why the loan is now denied.

As far as underwriting goes, there is a feeling that when an investor resorts to taking money out of an investment property, there could be some financial difficulty going on.

That goes for a refi of the prop or a home equity or HELOC.

But HELOCs are tough now even for primary residence.

What do you mean "too high"? Too low is usually the problem.

Don't know what you mean by "offer threshold" but the buyer can get a loan up to 96.5% of the purchase price. The purchase price can be lower than the appraised value.

Is a lender involved? Or did you order an appraisal for your own use? If that's the case, your appraisal will have nothing to do with any sale of the property. The lender for the buyer must order an appraisal using their system and their certified appraisers. And only that value will be known and used by underwriting to approve a loan.

Maybe I'm misunderstanding your question though.

Hey Joe, whatever happened with your deal? I found this very interesting cuz you had a lot of issues going on.

Keeping in mind that most FHA borrowers are using the program because they have minimal funds of their own, yes, most need that seller assistance.

I have done FHA loans for the past 10 years and I'm hard pressed to remember even one borrower who did not use some seller assistance, even back when it was a seller's market.

But unless your home won't appraise for enough, you shouldn't lose anything on the transaction because you build the concession into the price - as already stated here. Your realtor should be assisting you with this.

In terms of getting the loan closed, I have closed every loan with every borrower I have ever had who got computer (Desktop Underwriter) approval in the beginning AND did not do anything to lose their approval in the end. As a lender/broker, my hands are tied when the borrower boggles their own transaction & it happens a lot.

Their credit score goes down, they change their employment, they buy a car, apply for credit, spend their down payment, produce a problematic tax return, income cannot be verified as they disclosed, judgments turn up, they forget to tell the truth about child support, etc. And this happens with all borrowers - FHA, VA and conventional.

I warn every borrower about all these things several times during the process, both in writing and via phone. Regardless, every month, our office has a few loans that do not close because of things that were avoidable.

Lately, there have been more FHA buyers who do not NEED the seller assistance (but want it anyhow). That's because the guidelines for conventional approval have become so stiff that it often pays to go FHA. If the buyer's credit score is under 680, FHA will usually have a much better rate.

The contract must state the seller concession, so you will have to amend the contract - if it's not too late since the buyer will not like a hike in price. The appraiser will see your ratified contract, so he/she will know what value & what concession was agreed upon. If the value does not come back high enough, then you don't have a deal because the $3k won't be there for closing costs.

Hope this works out for you.

I often wonder about this. There are so many people filing BK and losing their homes. Where do they go when all the landlords are checking them out like crazy?

The gurus tell people with bad credit and BKs that they can easily go out and do lease/purchase deals. Are their owners who will do a lease/purchase with bad credit applicants?

If Arkansas doesn't permit assignments, do you really want to widdle your way around it by using another noun/verb?

Just saying . . .

Maybe there's another possible buyer lingering somewhere.

Would that be 10% down with no MI ?