Re: FHA loans - Posted by JT-IN
Posted by JT-IN on April 12, 2007 at 21:21:44:
The score was around a 566, if memory serves me right. The way the deal came about was, I was advertising for a L/O tenant on this new house, due to no takers otherwise. Had some good candidates apply, and the ultimate buyer seemed do-able on a straight out deal.
They were skeptical, because they have been told that before, only to later be turned down flat. So we inched along the slippery slope and low and behold we made it. The details are this… they own a MH outright, probably worth 5-8K, situated on a lot in a park… Have some major cc debt that is under an agreement plan with a third party… reduced interest and inflated payments. Those are not usually good, but they have made those payments like a clock over the past 13 months. 2 car payments, and those are good pays. They both make good money, totaling about 85K to 90K per year. (keep in mind we are talking the heartland here, not CA. That amt of $ will buy lots of groceries here).
Purchase price of 200K, new 1600 sq ft ranch house, full basmt, 2 car garage, pond, on 3 wooded acres. They have no money in pocket, so I am paying a 3% giufted DP, and 4K of their closing costs. Also purchasing the MH for 7500 cash at closing. They will walk away from closing with 5K in pocket and keys and garage door openers. They are super people and are absolutely tickled to death over this deal. They couldn’t be happier if they had won the Lottery, in fact, in their minds, they have won the Lottery, and didn’t even need to buy a ticket. All they had to do was call on the add, and it was a toll free number… LOL
So that is that. A Win-Win deal… it seems. No other lender would have come near this deal… of course I would have done the deal personally as a L/O deal, if we hadn’t been able to secure financing… however, I much prefer this route. Making plans to build a couple more up on the hill now… he-he.