I found a property that is a REO, ( The Bank wont help )The agent said it not going to list the property for another 3 weeks, the agent mention to me that they are going to list the property at ( around)1.3million. I want to offer 850,000.( I WISH) I m just not sure how to go about this. I want to purchase this property for me to keep.
The house is well kept up the land needs lots of work. Is any type of loans out there we can do…(we live in calif) we have a house and if we sell it our profit would be 200,000. Help…
Not sure how your market is doing, but you can offer whatever you want and maybe they will rebuttle. What type of loan are you looking for? If you will live in it, you can do it as owner occupied. Are you self employed or w2ed? How is the credit? Do you have any other liquid assets? These are just a few questions to get started.
Hello MB,
Do you have a down payment for the property? If you intend on living in the property, when are you going to sell your other house. You can get a loan for the new property, if you have the credit scores. All you can do is make an offer for the property and if they accept the price next step is to get a contract. After you get the contract signed by both parties the loan can get done.
First step is to get your credit scores and go from there!!!
Keep us up to date on how its going.
Good Luck,
Andrew
MB,
So you have $200,000 in profit from the sale of your home. If all of that can be used towards the down payment then you should not have a problem qualifying.
That would be 20% down and here are plent of lenders that can get this done for you, even if you have been credit challenged in the past.
Of course income and employment are important factors. Are you self employed or an employee of a company? For how long?
Once thing also that sticks out. You mentioned that the land needs a lot of work. How many acres is the home sitting on? This is a single family correct?
There are many consultants on this forum who can assist you if you need help.
Ok, our credit score is 746 and the lot is 38,000 . My husband works.
With your score, down payment, and employment you shouldn’t have a problem getting into that home.
Less than 1 acre will be fine.
With an LTV like that you could also do a small rehab on the property in the form of a rehab to permanent loan from a national lender. This would allow you to use all of that equity to get some updates done to the house and the yard, lock-in a long term rate, and use the ARV when calculating your LTV. This would also fee up the 200K from your current home to pay-off debt and/or invest for the future. Hope this helps.
Those “rehab to perm” loans usually are at a higher rate than other types.
For a lender, the score, LTV, etc. on a loan of this size will probably not be the issue- the issue will be your DTI ratio’s. Anything over about 45% and you’re either not going to get it, or take it in the shorts on your rate. There are SO many factors in deciding how you should finance, so make sure you talk to a Certified Mortgage Planner before you even think about making the offer. Especially since many (and in Cali, most) agents won’t even accept an offer without a lender’s pre-approval stapled to that offer!
Absolutely ask around to find a reputable, knowledgable mortgage consultant to help you. A SFR purchase of this much, especially in Cali, should be structured the best way for you, not your lender. Good luck!
Sorry, my bad! Forgot to not post regarding the e-mail… please forgive me, and don’t flame me! Newbie to this forum.
Ryman,
Are you the certified mortgage planner you were suggesting? I was digging around the CMPS web-site in the members area but could not seem to locate you?
The reason I suggested doing the rehab to perm is because it would allow the borrower to use the difference in the value of the property versus the sales prices as their down payment as well as to get some money to fix the yard and possibly update the house. Because of the short rehab time the borrower would not need to do an extended lock which would mean no hit to the rate. They may have to pay a small extended lock fee of an eighth or a quarter point, but nowhere near “taking it in the shorts”. This option would also leave the buyer with the 200K from the sale of their other home to invest which if I am correct is what a “certified mortgage planner” would advise them to do in the first place. C’mon man am I gonna have to call Gibran Nicholas and have him give you a stern talking to?
I always love these boards. Usually, someone will wind up getting into a personal attack, even if it’s backhanded. Always very professional.
As you may or may not be aware, there are often other granting bodies that provide designations than one. Mine was designated as part of my MBA, during which time I followed up my original BA in International Business with a two-year certificate from a university real estate program. I wasn’t “suggesting” it; I have that designation thru a private university. But thanks for the “just trying to shove the guy’s face in the mud” your post shows. I don’t put all my different degrees, designations, etc. on my cards, nor on my “me” wall in my office. Just don’t feel I need to show off parchment to convince someone of something and, frankly, haven’t taken the time to go thru the CMPS. Might in the future, as I’ve heard excellent reviews, and have met and respect a couple of it’s graduates. I’ve always enjoyed learning as much as possible in both my chosen fields of endeavor, as well as general things that interest me. I mean, I didn’t take a minor in asian studies with a plan to use it; I took it because the eastern philosophies and religions comparative to the west I found fascinating.
As I understand the purpose of a moderated forum on a particular subject, it is to discuss the topics and issues of that particular subject, as well as offer opinion and personal insight that has been requested through it’s postings of questions. Is that a pretty accurate summation?
As the discussion was on rebab loans, I was referring to the higher rate offered by more traditional financing. You should agree that the higher the DTI, a resultant higher rate is usually the case. Further, I did not suggest any particular loan program, as you did with almost no information provided by the poster. I suggested he speak with a lender with experience, and recommended a CFP.
At no point in time did I suggest he speak with me, or offer an opinion on programs or structures.
As to your name-dropping, man, and uncalled for suggesting I need a stern talking to from Mr. Nicholas who, while I’ve never met, I have the utmost respect for, you have shown yourself to be both unprofessional in the extreme and arrogant to a fault. I suggest you reserve yourself to offering opinions on a subject, and avoid the facetious attacks.
I’d get into a battle of wits with you, but I prefer not to do so with an unarmed opponent.
Thanks for the chuckles boys. I like the cat fighting.
Nate-WI