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January 6, 2009 at 12:26 AM in reply to: Chances of buying an REO or short-sale without 20% down? #325097January 6, 2009 at 12:26 AM in reply to: Chances of buying an REO or short-sale without 20% down? #325180
HLS
Participantsdr, Thanks for the advice. I’ve been involved with So Cal Real Estate for over 25 years.
I’ve dealt with my share of ignorant mortgage and RE agents, there is no shortage of either.There are some sellers that might believe that a larger down means a stronger buyer, but that is nonsense. Not all sellers are that stupid. They get their money at closing regardless of the down payment.
I can provide approvals and get loans done quickly for strong borrowers. It’s ignorance that makes people think that a larger down is a better offer.
sdr, you already mentioned that you have had buyers in escrow for ages, while I am closing loans in a couple of weeks.
Many agents are absolute idiots, as well as many mortgage people are. Get a good agent and a good mortgage person together and deals will happen quickly.
The generalizations that are thrown around mislead strong borrowers like Scarlett to believe that they need to pay a higher price that they really need to.
Scarlett, you need a good agent that can represent you, and I don’t believe that you need to overpay to compete with a larger down offer.
Are you being told that your higher offer will get trumped by a lower offer with a larger down payment ??
I’m sure it was a REALTOR that told you you will have to pay more to compete…
FHA and FNMA loan limits have changed, they have gone down. You can qualify for more than you want to borrow.
I hope that you are getting good advice about your loan options, but it doesn’t sound like it. You are a strong borrower, even with a low down.
I imagine that it is a REALTOR telling you that you aren’t a strong buyer ??
GIVE ME A BREAK….I’d love the opportunity to work with you. . HLS
January 5, 2009 at 11:36 PM in reply to: Chances of buying an REO or short-sale without 20% down? #324651ParticipantSorry, 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.
January 5, 2009 at 11:36 PM in reply to: Chances of buying an REO or short-sale without 20% down? #324988ParticipantSorry, 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.
January 5, 2009 at 11:36 PM in reply to: Chances of buying an REO or short-sale without 20% down? #325057ParticipantSorry, 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.
January 5, 2009 at 11:36 PM in reply to: Chances of buying an REO or short-sale without 20% down? #325072ParticipantSorry, 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.
January 5, 2009 at 11:36 PM in reply to: Chances of buying an REO or short-sale without 20% down? #325155ParticipantSorry, 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.
ParticipantHad another caller today who was in a rush to pay off their house, saddled with a 15 YR mortgage and a bunch of equity that they cannot get to.
They are in financial trouble, but don’t qualify for a loan today. Lost their job. About 6 years into a 15 YR mortgage.
Their January payments will be at least 30 days late, mortgage and credit cards. Their credit score will drop 50 to 100 points once the lates hit, and then they will have no chance of refinancing for a long time.
They never thought they would be in this situation… selling the home may be their only way out, for whatever they can get.
The way I see it, a 30 YR mortgage and the difference in the bank would have spared them from this situation…. The difference in payments would mean over $150,000 in the bank after the last 5 years.
Bad luck or bad planning ??
ParticipantHad another caller today who was in a rush to pay off their house, saddled with a 15 YR mortgage and a bunch of equity that they cannot get to.
They are in financial trouble, but don’t qualify for a loan today. Lost their job. About 6 years into a 15 YR mortgage.
Their January payments will be at least 30 days late, mortgage and credit cards. Their credit score will drop 50 to 100 points once the lates hit, and then they will have no chance of refinancing for a long time.
They never thought they would be in this situation… selling the home may be their only way out, for whatever they can get.
The way I see it, a 30 YR mortgage and the difference in the bank would have spared them from this situation…. The difference in payments would mean over $150,000 in the bank after the last 5 years.
Bad luck or bad planning ??
ParticipantHad another caller today who was in a rush to pay off their house, saddled with a 15 YR mortgage and a bunch of equity that they cannot get to.
They are in financial trouble, but don’t qualify for a loan today. Lost their job. About 6 years into a 15 YR mortgage.
Their January payments will be at least 30 days late, mortgage and credit cards. Their credit score will drop 50 to 100 points once the lates hit, and then they will have no chance of refinancing for a long time.
They never thought they would be in this situation… selling the home may be their only way out, for whatever they can get.
The way I see it, a 30 YR mortgage and the difference in the bank would have spared them from this situation…. The difference in payments would mean over $150,000 in the bank after the last 5 years.
Bad luck or bad planning ??
ParticipantHad another caller today who was in a rush to pay off their house, saddled with a 15 YR mortgage and a bunch of equity that they cannot get to.
They are in financial trouble, but don’t qualify for a loan today. Lost their job. About 6 years into a 15 YR mortgage.
Their January payments will be at least 30 days late, mortgage and credit cards. Their credit score will drop 50 to 100 points once the lates hit, and then they will have no chance of refinancing for a long time.
They never thought they would be in this situation… selling the home may be their only way out, for whatever they can get.
The way I see it, a 30 YR mortgage and the difference in the bank would have spared them from this situation…. The difference in payments would mean over $150,000 in the bank after the last 5 years.
Bad luck or bad planning ??
ParticipantHad another caller today who was in a rush to pay off their house, saddled with a 15 YR mortgage and a bunch of equity that they cannot get to.
They are in financial trouble, but don’t qualify for a loan today. Lost their job. About 6 years into a 15 YR mortgage.
Their January payments will be at least 30 days late, mortgage and credit cards. Their credit score will drop 50 to 100 points once the lates hit, and then they will have no chance of refinancing for a long time.
They never thought they would be in this situation… selling the home may be their only way out, for whatever they can get.
The way I see it, a 30 YR mortgage and the difference in the bank would have spared them from this situation…. The difference in payments would mean over $150,000 in the bank after the last 5 years.
Bad luck or bad planning ??
January 5, 2009 at 9:38 PM in reply to: Chances of buying an REO or short-sale without 20% down? #324562ParticipantScarlett, you need to get qualified for a loan.
For loan amounts below $417K, at the moment, there are 95% FNMA loans available with a mid credit score of 700+ This can change at any time.
As far as I’m concerned, FHA loans are like assigned risk auto insurance. If you are willing to pay the price, they will deal with you.
They represent more risk and will cost you much more than if you have a larger down payment.
If the loan amount is $417K-$546K in San Diego County you will need at least 15% down for FNMA
or
3.5% down for FHA loans up to $546K in San Diego County..These are the guidelines for FNMA or FHA to buy the loans. I don’t know of lenders that make exceptions the way people seem to think.
Lenders/banks dont make money lending their money for 30 years on fixed mortgagges. They MUST meet the guidelines to be sold to FHA or FNMA. Then they are bundled into MBS.
Rates can be higher at banks, and programs or knowledge of the bank employee can be limited, the same applies to mortgage brokers.
You should find someone to work with regarding a loan. You need to KNOW that you qualify for a loan before you even start thinking about buying a house, not just assuming that you qualify.
Some of the guidelines are crazy. LOTS of people don’t qualify, but think that they do.I doubt that the chances will increase to lend to really risky borrowers again for a very long time; that’s what got the world into this mess.
The current guidelines already allow for people that probably shouldn’t be buying homes to buy them. Not as silly as a couple of years ago, but still pretty silly. …HLS
January 5, 2009 at 9:38 PM in reply to: Chances of buying an REO or short-sale without 20% down? #324898ParticipantScarlett, you need to get qualified for a loan.
For loan amounts below $417K, at the moment, there are 95% FNMA loans available with a mid credit score of 700+ This can change at any time.
As far as I’m concerned, FHA loans are like assigned risk auto insurance. If you are willing to pay the price, they will deal with you.
They represent more risk and will cost you much more than if you have a larger down payment.
If the loan amount is $417K-$546K in San Diego County you will need at least 15% down for FNMA
or
3.5% down for FHA loans up to $546K in San Diego County..These are the guidelines for FNMA or FHA to buy the loans. I don’t know of lenders that make exceptions the way people seem to think.
Lenders/banks dont make money lending their money for 30 years on fixed mortgagges. They MUST meet the guidelines to be sold to FHA or FNMA. Then they are bundled into MBS.
Rates can be higher at banks, and programs or knowledge of the bank employee can be limited, the same applies to mortgage brokers.
You should find someone to work with regarding a loan. You need to KNOW that you qualify for a loan before you even start thinking about buying a house, not just assuming that you qualify.
Some of the guidelines are crazy. LOTS of people don’t qualify, but think that they do.I doubt that the chances will increase to lend to really risky borrowers again for a very long time; that’s what got the world into this mess.
The current guidelines already allow for people that probably shouldn’t be buying homes to buy them. Not as silly as a couple of years ago, but still pretty silly. …HLS
January 5, 2009 at 9:38 PM in reply to: Chances of buying an REO or short-sale without 20% down? #324984ParticipantScarlett, you need to get qualified for a loan.
For loan amounts below $417K, at the moment, there are 95% FNMA loans available with a mid credit score of 700+ This can change at any time.
As far as I’m concerned, FHA loans are like assigned risk auto insurance. If you are willing to pay the price, they will deal with you.
They represent more risk and will cost you much more than if you have a larger down payment.
If the loan amount is $417K-$546K in San Diego County you will need at least 15% down for FNMA
or
3.5% down for FHA loans up to $546K in San Diego County..These are the guidelines for FNMA or FHA to buy the loans. I don’t know of lenders that make exceptions the way people seem to think.
Lenders/banks dont make money lending their money for 30 years on fixed mortgagges. They MUST meet the guidelines to be sold to FHA or FNMA. Then they are bundled into MBS.
Rates can be higher at banks, and programs or knowledge of the bank employee can be limited, the same applies to mortgage brokers.
You should find someone to work with regarding a loan. You need to KNOW that you qualify for a loan before you even start thinking about buying a house, not just assuming that you qualify.
Some of the guidelines are crazy. LOTS of people don’t qualify, but think that they do.I doubt that the chances will increase to lend to really risky borrowers again for a very long time; that’s what got the world into this mess.
The current guidelines already allow for people that probably shouldn’t be buying homes to buy them. Not as silly as a couple of years ago, but still pretty silly. …HLS
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