My option period ends in 1 day and I need help - Posted by Monique

Posted by JamesL on February 07, 2002 at 18:21:30:

I noticed something you should look at. Why are you willing to pay $130,000 for a house that only appraises at $133,000?
If it appraises at $165,000 it would be a great deal easier to work out financing.

cost of house - 130,000

  • closing costs 2,000
  • mortgage fees 3,000 (high)
  • Pocket cash 5,250

= 140,250

With no cash, it would be alot easier for you to buy a house with a much greater value, and lower asking price. In the example above, you could do the deal with nothing down, on a 85% ltv loan, and keep $5000 tax-free for yourself.
If it’s that particular house that you must have, relax. At such a high price, there probably arent 10 other buyers waiting to move in on your deal. If there are, you should get another appraiser to re-assess the value.
Remember…there will always be other houses. ok?

My option period ends in 1 day and I need help - Posted by Monique

Posted by Monique on February 06, 2002 at 21:14:04:

I need help. My husband and I have found this beautiful home with potential that we like for ourselves. We tried to get financing from FHA but it needs siding and a new roof and they will not finance unless this is repaired. The sellers do not have the means to pay for this and we cannot go conventional because we have $0.00 capital. The asking price 130K the appraisal is $133k. Can you help us to construct a win win deal? by the way the option period ends on Thursday Feb 7, 2002 and there are 2 realtors involved.

Re: My option period ends in 1 day and I need help - Posted by Shane

Posted by Shane on February 07, 2002 at 11:12:01:

There are 100 LTV conventional programs out there for a owner occupied home. If you have been dealing with lenders that either don’t have them or unaware what they are try new lenders. Freddie Mac offers a 100 LTV program. It isn’t the best 100 LTV program out there but it is available to any conforming lenders. There are numerous other 100 LTV programs and even some 103 LTV programs available on the non-conforming side. You pay for your lack of down payment with a higher interest rate but it normally isn’t to bad and if that is what it takes to get you in the house only you know if it is worth it or not. Some have pre-pays some don’t. Find someone who can give you many options and then decide for yourself what works best. Good luck Shane

Re: My option period ends in 1 day and I need help - Posted by Erin

Posted by Erin on February 07, 2002 at 10:40:19:

1 idea that looked good to me and that I am working on is borrowing the downpayment and closing costs by using an existing property (could be your personal house or, in my case, one I am currently working on) and pull an equity line. That way you can borrow for your down-payment and closing costs while obtaining a standard mortgage for the needed mortgage amount. Not very fast, but it may work. Hope this helps.