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HLS
ParticipantIn my opinion 25% equity isn’t enough of a cushion to offset the risk.
I try to avoid the Hard Money guys, but know that some are busy.When they start asking for 40%-50% equity, I’ll let you know. 😉
There was one major lender whose claim was that they weren’t credit score driven. They really amused me.
They would cut legitimate appraisals by 10%-15% an that was several years ago. They were a bit more careful then because they were doing the neg am loans and allowing them to max out at 115%. TA-DA !!ParticipantIn my opinion 25% equity isn’t enough of a cushion to offset the risk.
I try to avoid the Hard Money guys, but know that some are busy.When they start asking for 40%-50% equity, I’ll let you know. 😉
There was one major lender whose claim was that they weren’t credit score driven. They really amused me.
They would cut legitimate appraisals by 10%-15% an that was several years ago. They were a bit more careful then because they were doing the neg am loans and allowing them to max out at 115%. TA-DA !!ParticipantIn my opinion 25% equity isn’t enough of a cushion to offset the risk.
I try to avoid the Hard Money guys, but know that some are busy.When they start asking for 40%-50% equity, I’ll let you know. 😉
There was one major lender whose claim was that they weren’t credit score driven. They really amused me.
They would cut legitimate appraisals by 10%-15% an that was several years ago. They were a bit more careful then because they were doing the neg am loans and allowing them to max out at 115%. TA-DA !!ParticipantHi SD,,,
Above 80%, seller concessions are usually limited to 3%.
At 80% or below, 6% max can be possible.Some subprime “lenders” were limiting a point rate buy down at a cost of 2 to 2.5 points.
Prime lenders have many diff options. 30 YR conforming rates
were available as low as 5.25% recently WITH the buydown.
Buy downs of 2 or 3 points cost may make sense for some.Programs are changing every day, really difficult to keep up.
There is a commercial on TV that talks about rates being “around” 5.75%.. (is 6% “around 5.75 ??)
It’s done with buy down fees, but leads people to believe that is the market rate.ParticipantHi SD,,,
Above 80%, seller concessions are usually limited to 3%.
At 80% or below, 6% max can be possible.Some subprime “lenders” were limiting a point rate buy down at a cost of 2 to 2.5 points.
Prime lenders have many diff options. 30 YR conforming rates
were available as low as 5.25% recently WITH the buydown.
Buy downs of 2 or 3 points cost may make sense for some.Programs are changing every day, really difficult to keep up.
There is a commercial on TV that talks about rates being “around” 5.75%.. (is 6% “around 5.75 ??)
It’s done with buy down fees, but leads people to believe that is the market rate.ParticipantHi SD,,,
Above 80%, seller concessions are usually limited to 3%.
At 80% or below, 6% max can be possible.Some subprime “lenders” were limiting a point rate buy down at a cost of 2 to 2.5 points.
Prime lenders have many diff options. 30 YR conforming rates
were available as low as 5.25% recently WITH the buydown.
Buy downs of 2 or 3 points cost may make sense for some.Programs are changing every day, really difficult to keep up.
There is a commercial on TV that talks about rates being “around” 5.75%.. (is 6% “around 5.75 ??)
It’s done with buy down fees, but leads people to believe that is the market rate.ParticipantEACH SSN is $100K, however how the accounts are titled is CRUCIAL. In my Spouse A & B example you could still lose $50K with $200K in the bank..
A couple can have (at least) $200K per bank.
The POD options are powerful. Did you read them ?
A crazy story I saw recently was a man had died on the same day that a bank was seized by fed’s, so the wife wasn’t covered by the POD because she had a separate account of her own for $100K,,, HOWEVER, the bank was taken over at 3pm, and he didn’t die until 10pm, so at 3pm he was still alive AND still insured… (Could be urban legend)
ParticipantEACH SSN is $100K, however how the accounts are titled is CRUCIAL. In my Spouse A & B example you could still lose $50K with $200K in the bank..
A couple can have (at least) $200K per bank.
The POD options are powerful. Did you read them ?
A crazy story I saw recently was a man had died on the same day that a bank was seized by fed’s, so the wife wasn’t covered by the POD because she had a separate account of her own for $100K,,, HOWEVER, the bank was taken over at 3pm, and he didn’t die until 10pm, so at 3pm he was still alive AND still insured… (Could be urban legend)
ParticipantEACH SSN is $100K, however how the accounts are titled is CRUCIAL. In my Spouse A & B example you could still lose $50K with $200K in the bank..
A couple can have (at least) $200K per bank.
The POD options are powerful. Did you read them ?
A crazy story I saw recently was a man had died on the same day that a bank was seized by fed’s, so the wife wasn’t covered by the POD because she had a separate account of her own for $100K,,, HOWEVER, the bank was taken over at 3pm, and he didn’t die until 10pm, so at 3pm he was still alive AND still insured… (Could be urban legend)
ParticipantYour idea is good, however there are restrictions based on lending guidelines.
Depending on the loan program, seller concessions are limited to 3% or 6% of the selling price.
As stated, property must still appraise for higher amount and property taxes will be based on selling price.Giving cash back to a borrower isn’t “legal” but could still happen.
A buydown can take 5-7 years to make sense, and some lenders have floor rates and don’t even allow a buydown.
Whatever will be will be. Lending ISN’T going away.
10% was a great conforming rate at one time.The simple fact is that many people won’t be able to qualify for a loan. It’s been that way in NYC and SF Bay area for a long time. It’s not an entitlement.
The free market will find its level, with many people sitting on the sidelines.
Right Now,
Jumbo Loans (above $417k)
30 YR Fixed, 20% down are 7.625%.
(2nds are available up to 90-95%) with 680+ mid credit score. With a score above 720 or 780 it gets slightly better.
Still have to qualify.Money is still available. Jumbo rates are higher than they were a month ago, but still less than they were years ago.
FYI 8.25% on the above would pay a 1% rebate/commission with a 780+ score, which is obscene in my opinion.
ParticipantYour idea is good, however there are restrictions based on lending guidelines.
Depending on the loan program, seller concessions are limited to 3% or 6% of the selling price.
As stated, property must still appraise for higher amount and property taxes will be based on selling price.Giving cash back to a borrower isn’t “legal” but could still happen.
A buydown can take 5-7 years to make sense, and some lenders have floor rates and don’t even allow a buydown.
Whatever will be will be. Lending ISN’T going away.
10% was a great conforming rate at one time.The simple fact is that many people won’t be able to qualify for a loan. It’s been that way in NYC and SF Bay area for a long time. It’s not an entitlement.
The free market will find its level, with many people sitting on the sidelines.
Right Now,
Jumbo Loans (above $417k)
30 YR Fixed, 20% down are 7.625%.
(2nds are available up to 90-95%) with 680+ mid credit score. With a score above 720 or 780 it gets slightly better.
Still have to qualify.Money is still available. Jumbo rates are higher than they were a month ago, but still less than they were years ago.
FYI 8.25% on the above would pay a 1% rebate/commission with a 780+ score, which is obscene in my opinion.
ParticipantYour idea is good, however there are restrictions based on lending guidelines.
Depending on the loan program, seller concessions are limited to 3% or 6% of the selling price.
As stated, property must still appraise for higher amount and property taxes will be based on selling price.Giving cash back to a borrower isn’t “legal” but could still happen.
A buydown can take 5-7 years to make sense, and some lenders have floor rates and don’t even allow a buydown.
Whatever will be will be. Lending ISN’T going away.
10% was a great conforming rate at one time.The simple fact is that many people won’t be able to qualify for a loan. It’s been that way in NYC and SF Bay area for a long time. It’s not an entitlement.
The free market will find its level, with many people sitting on the sidelines.
Right Now,
Jumbo Loans (above $417k)
30 YR Fixed, 20% down are 7.625%.
(2nds are available up to 90-95%) with 680+ mid credit score. With a score above 720 or 780 it gets slightly better.
Still have to qualify.Money is still available. Jumbo rates are higher than they were a month ago, but still less than they were years ago.
FYI 8.25% on the above would pay a 1% rebate/commission with a 780+ score, which is obscene in my opinion.
ParticipantLA_R. of course you are correct, but I was just trying to stick with the topic!
Many LOAN scum are trying to screw people worse than ever right now because they have so few deals to do and need to make some money..It’s borrower beware.
There are and will be zillions of dollars on Wall Street.
Money will loosen up again.
I have no problem with lending standards getting back to where they should be.Now when I tell some people that I CANNOT get them a loan, I will actually be telling them the truth. 😉
I’ve been around So Cal for 40+ years, I’ve seen almost everything.
ParticipantLA_R. of course you are correct, but I was just trying to stick with the topic!
Many LOAN scum are trying to screw people worse than ever right now because they have so few deals to do and need to make some money..It’s borrower beware.
There are and will be zillions of dollars on Wall Street.
Money will loosen up again.
I have no problem with lending standards getting back to where they should be.Now when I tell some people that I CANNOT get them a loan, I will actually be telling them the truth. 😉
I’ve been around So Cal for 40+ years, I’ve seen almost everything.
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