Help with creative OO financing, loosing my nerve. - Posted by Tim
Posted by Tim on March 01, 2002 at 15:41:50:
Your right, I am going to look at the numbers again and see if I can make them work. If not I have an inspection scheduled for Monday. I don’t know if they will find anything substantially wrong, but I will try to use this as my out. If not I will have to forfeit the earnest money.
If it comes to that I guess I will have learned an expensive, but valuable lesson. My realtor casually suggested the OO financing approach and I based my numbers off of those rates.
The FMV of the house is probably about $170,000, I got it for $160,000. The financing would be 10% down and the rest at a 5/1 arm at 5.5%, $62/month PMI, taxes about $1,800/year. Expected rent is $1,350 in these parts. 2000 sqft, 4/3 with large family room.
I inquired with another lender about NOO loans. He said 30 year fixed at 7.25 10% down with a higher PMI
The more I read the more I realize that I need to get the price down much further than 5% below FMV.
Thanks for helping me sleep better at night.