[quote=flu][quote=bearishgurl]How is a buyer going to successfully ask for and receive a $3K closing-costs credit (for up-front MIP?) if condos in MM typically have cash offers from investors to consider?[/quote]Not sure what cash offers from others has to do with FHA financing specifically. If you’re arguing that the condo is multiple offers, with some being cash offers, how would your offer (with a loan) stack up versus a cash offer. Well, then that’s a good point probably…But that’s consistent with what sdr is saying when he says “Only issue is actually finding one to buy.” But I suspect once you start talking about $200k+ property, the number of “cash” buyers probably starts to dwindle a bit…
Most FHA loans I believe have a pretty generous closing credit…. At least that’s what Absolute Mortgage was advertising a few weeks back when I was generally look at rates.[/quote]
flu, in my post, I was thinking that the suggestion was to ask the sellers for a closing credit in the neighborhood of $3-$5K to help with up-front MIP and that this provision in their offer would likely be trumped by strong cash offers.
I was unaware that there were lenders out there who would extend a closing credit to new FHA mortgagees.
[quote=flu][quote=bearishgurl]birmingplumb, the *new* MIP for FHA loans is costly.[/quote]Well, of course it costs more than a traditional loan. Because the purpose of it is to extend financing to people who don’t have sufficient down and/or don’t have good enough credit. But whether it costs more than a conventional loan is irrelevant. What is relevant is after grinding through the math is if it pencils out to be lower or comparable to rent.
But all this is really a moot point, because at the way Mira Mesa inventory is looking, that’s the main problem.
If it were me, and if I could manage to stay put for 5 years at least. I would be looking to buy. That’s just me.[/quote]
Exactly, flu, the subject of MM condos here is moot. Thus, my post above. I find it idiotic that MM condos were brought up as an option for birmingplumb’s daughter and SIL in the first place because any current listings there that are in their price range are likely swarming with investor-buyers with strong cash positions (acc to Piggs “presumably `in the know'”) and the OP’s prospective buyers will likely be coming in with a low downpayment.
And as a young “blue-collar” family, they likely do not fit the profile of the “single professional” whom several Piggs have claimed here are typically attracted to and occupy MM condo units.
birmingplumb’s daughter and SIL would be much better off trying to locate a small SFR in the low-mid $200’s with a YARD and avoiding the issue of HOA dues and degree of owner-occupancy entirely, IMO. Over time, they could make an SFR far more resaleable than an older condo, IMO. Believe it or not, there are plenty of these listings out there!
birmingplumb, here are some currently listed examples not far from where your daughter and SIL currently reside:
The first two are “short sales.” The comments indicate the first one is a “real fixer.” In perusing the limited photos, it does NOT appear to be a “fixer” except for the landscaping, IMHO. The third one is in a better location (YES, it IS better, Piggs :=]) and is a “traditional sale” with a very ample lot which needs landscaping work. The first and third one are small but could be added onto, due to lot size.
There ARE options for SFR’s in SD in the low-mid $200’s but the buyer needs to be aware than many SFR listings in this price range are situated on busy streets and have deafening fwy noise which can be heard day and night standing on the lot. I did not include those listings here.
birmingplumb, South County would work out well for your SIL’s job as the shipyards are 6 miles from West Chula Vista 91910, 3 miles from National City 91950, 5 miles from Paradise Hills 92139, 4 miles from Valencia Park 92114 and 4-5 miles from North Bay Terraces 92114. A buyer can get more for their money in a well-built SFR and even larger lot in these areas than upper Clairemont 92117 and Linda Vista 92111.
In my experience, I have found it cheaper to do a little “fix-up” work on an SFR than to waste money on monthly HOA dues, which can go up periodically as well as have costly “special assessments” required of each owner, both strictly at the whim of the HOA Board.
