[quote=HLS]Sorry, I was confused. If you know that you will qualify, what was the point of your post ??
Do you think that REO sellers don’t deal with approved buyers ??
The seller wants money. They don’t care where it comes from. They get their money at close of escrow regardless of whether it’s a cash buyer OR from a loan.
The seller has nothing to do with the amount of the buyer’s down payment. Most seller’s just want the highest price they can get.
I’m still confused by your original question.[/quote]
HLS, I was told and I got the impression that, for decent houses that are REOs or short sales, there are always multiple offers or bidding wars. And there are almost always buyers with a more solid offer cash-wise – i.e. 20% or more cash. And that the (seller’s) banks actually prefer less risk, than a little more money with more risk (i.e. less than 20% down). Not sure how true this last statement is. Do the sellers take the highest price, if it’s less than 20% down? That is why I was wondering about the chances with less than 20% down to be accepted when multiple offers. I understand now I’ll probably have to come with a slightly higher price to make it more attractive, question is now how much higher. Sorry if I was not clear.
Thanks for all your input,HLS.
BTW, 6months ago I was qualified actually for 700K FHA loan with 5% down. 2 months ago, the broker wanted to update the qual and do 10% down conventional. By that time, I was convinced I didn’t want to buy then.
