Has this happened to you??

We made an offer on a house today. When I told the realtor that we were doing financing by way of HML, she said that we needed to make sure we got a Settlement Statement from the HML. She said that she had heard of people using this type of financing and then at the last minute the HML said, Oh by the way, you need 10,000 down.

Just wondering if this happens and what I should be aware of??

well you can probably go through a broker and get 100% financing and not worry about something like that popping up last minute. Are you fico scores decent?

we are acutally going to use my husband’s credit for this. He has excellent credit.
ummm, where do I find a broker?

Where are you guys located?

near St. Louis, MO

As a real estate agent, I always advise my clients to get a “Good Faith Estimate” on your loan. It will provide you with a breakdown, line by line of your costs that are involved in the loan itself. While this is not the HUD statement, it should still be very close to what your final costs will be at time of closing, thereby reducing any surprise elements.

Yes, I would agree, if your husband has good credit, there is not reason that you couldn’t get a 100% “regular” mortgage and avoid the extremely high cost of a HML.

  1. But I thought that most “regular” banks won’t lend on a fixer-upper type of property.

  2. We don’t have a down payment. Usually they want a down payment of SOMETHING.

  3. We need to do this quickly. Banks take too long.

Most lenders can close in 3 weeks, 2 weeks if the broker is really on top of it.

100% is possible for investment properties, but the terms aren’t great.

Depends on what is wrong with the property as far as what the bank will do. If the problems are structural or an environmental or health hazard, then you are probably right, you will have trouble getting a loan anywhere except HML. If the fix ups are mostly cosmetic in nature, you should be OK.