I’m in the market for my 1st house, and have a couple questions. This will be my primary residence, but hopefully will be the 1st of many to purchase/sell.
I’ve been looking at REO’s and have a couple questions, mainly related to financing. I met with CTX Mortgage this morning and the loan officer there was trying to push the no money down 30 year fixed FHA loan. He was also trying to steer me clear of anything foreclosure related. A friend who works for Prime Lending was talking about a Purchase Plus loan (that he did on his own house that was a REO), where you can get the appraisal “subject to” the upgraded value of the house, and get a higher mortgage to pay for those upgrades.
Would that be a good deal or for my primary residence be better off just finding a house the regular way from regular sellers with a standard FHA loan? Would it be harder to get a FHA loan on a REO?
Also does anybody know any real estate agents in Dallas (Carrollton, Richardson, or Plano) that have experience with purchasing REO’s?
Brian Brickman - Plano
Pat Dewberry - N. Dallas
email me offline for contact info.
Both know what investors are looking for; something most realtors can’t seem to grasp.
Nothing wrong with REO’s, but be aware that they often have…um…er… “problems”. I’d always rather use someone else’s money than my own (cost plus loan), but that’s just me. The ones I know of require 10% down, though.
Little too late, already found one. One of my friends is a loan officer with Prime Lending, and he referred me to another mutual friend that I didn’t even know was an agent… He’s done rehabbing in the past before he got licensed so he seems like he knows whats going on
Found a place today that I think may be it… What do you guys think? Good deal?
In a nice neighborhood.
REO for sale @ $122,500, $80.12/sq ft. Original list price $129,900.
8 Sold comps since 11/05
Low: 127,500
Ave: 137,600
High: 149,000
$/sq ft
Low: $88.14
Ave: $94.05
High: $101.67
The house appraised for $149k last year. So far it looks like just carpet and general cleaning up is all that’s required. I’m sure I’ll know more after I get an inspector out to check on structural and roof. House was built in 1986…
wagner, me again, i have a way of finding you in here i guess. My brother has a rental in a town with about $200 + CF and roughly 10k equity. He lives in another town and rents himself. Is it possible for him to qualify for a second mortgage and get into a condo or some small house using that 10k equity? If not, can he do a HELOC or sth and do it? How about doing a HEL and paying down the existing mortgage to avoid PMI. Can you do that?
If his TX rental has positive cash flow, and he has the income to afford the house he wants, then he should have no problem getting financing without having to resort to “tricks”.
If he doesn’t have the income to support it, then it is doubtful that any tricks will get him into a house.