RAY,
I think I know who you are talking about.
It’s a portfolio loan that they keep, but isn’t it a max of 75% of current value ?

A 5YR ARM today is a very dangerous product.
What if rates are 10% in 6 years ?

For loans under $546K…
I have 30 Year fixed rates at 5.00%. You can buy down to 4.875% for a tiny fee.
Without 20% equity, PMI is added.

With 40%+ equity rates are 4.875%

Almost any rate can be shown, the key is the cost to get that rate.

With historically low rates, I think it is insane to hope for a tiny further decline that may or may not happen.

On a historical scale of 1 to 100 of mortgage rates, with 100 being the highest we are currently at 1. People want more. HLS

RAY,
I think I know who you are talking about.
It’s a portfolio loan that they keep, but isn’t it a max of 75% of current value ?

A 5YR ARM today is a very dangerous product.
What if rates are 10% in 6 years ?

For loans under $546K…
I have 30 Year fixed rates at 5.00%. You can buy down to 4.875% for a tiny fee.
Without 20% equity, PMI is added.

With 40%+ equity rates are 4.875%

Almost any rate can be shown, the key is the cost to get that rate.

With historically low rates, I think it is insane to hope for a tiny further decline that may or may not happen.

On a historical scale of 1 to 100 of mortgage rates, with 100 being the highest we are currently at 1. People want more. HLS

Hey HLS,

I have a buddy who is looking at places to buy right now. While I am activly trying to talk him out of it, mostly due to the fact that he cant afford it (not because they are bad prices), I cant go toe to toe with his cheerleaders.

He found a place that needs some work, it doesnt have a real functioning kitchen cause it was a remodel gone bad. Itll cost 20k or so apparently to get the pieces back together (it isnt too bad). Anyways my buddy has 0 savings, as in NONE, but is using a VA loan. He claims he could get a 115% LTV loan at about 6%, which will actually be higher cause he will also have to role the closing costs into the loan as again he has 0 savings. So basically he is saying he can get a 120% loan right now at the 6% mark or so. Is this true? Can lending still be higher than 100% LTV? Even on a partially done foreclosure?
Apparently the other option is to pay a higher purchase price, but then get a sellers rebate to do the work.

It is setting off so many red flags in my head Id think I am at a Chinese Communist party parade or something, but dont have any info to discredit this. Just looking to see if lending has really gotten tighter or if things are just as dumb as ever.

Oh and he has a low 600’s credit score.

(please dont flame the poster, I swear it isnt me)

Hey HLS,

I have a buddy who is looking at places to buy right now. While I am activly trying to talk him out of it, mostly due to the fact that he cant afford it (not because they are bad prices), I cant go toe to toe with his cheerleaders.

He found a place that needs some work, it doesnt have a real functioning kitchen cause it was a remodel gone bad. Itll cost 20k or so apparently to get the pieces back together (it isnt too bad). Anyways my buddy has 0 savings, as in NONE, but is using a VA loan. He claims he could get a 115% LTV loan at about 6%, which will actually be higher cause he will also have to role the closing costs into the loan as again he has 0 savings. So basically he is saying he can get a 120% loan right now at the 6% mark or so. Is this true? Can lending still be higher than 100% LTV? Even on a partially done foreclosure?
Apparently the other option is to pay a higher purchase price, but then get a sellers rebate to do the work.

It is setting off so many red flags in my head Id think I am at a Chinese Communist party parade or something, but dont have any info to discredit this. Just looking to see if lending has really gotten tighter or if things are just as dumb as ever.

Oh and he has a low 600’s credit score.

(please dont flame the poster, I swear it isnt me)

Hey HLS,

I have a buddy who is looking at places to buy right now. While I am activly trying to talk him out of it, mostly due to the fact that he cant afford it (not because they are bad prices), I cant go toe to toe with his cheerleaders.

He found a place that needs some work, it doesnt have a real functioning kitchen cause it was a remodel gone bad. Itll cost 20k or so apparently to get the pieces back together (it isnt too bad). Anyways my buddy has 0 savings, as in NONE, but is using a VA loan. He claims he could get a 115% LTV loan at about 6%, which will actually be higher cause he will also have to role the closing costs into the loan as again he has 0 savings. So basically he is saying he can get a 120% loan right now at the 6% mark or so. Is this true? Can lending still be higher than 100% LTV? Even on a partially done foreclosure?
Apparently the other option is to pay a higher purchase price, but then get a sellers rebate to do the work.

It is setting off so many red flags in my head Id think I am at a Chinese Communist party parade or something, but dont have any info to discredit this. Just looking to see if lending has really gotten tighter or if things are just as dumb as ever.

Oh and he has a low 600’s credit score.

(please dont flame the poster, I swear it isnt me)

HLS, can I have your email address. I am interested in the 30yr at 5.0. Is that a 0 pt 0 fee loan?

HLS, can I have your email address. I am interested in the 30yr at 5.0. Is that a 0 pt 0 fee loan?