Renter · Redwood City, CA · Member since 2015 · 2 posts · 1 vote
Very new to Real Estate purchasing.
We are in a situation the landlord wants to sell quickly, they are asking for 900K, the house is worth 1.3 and seems to be the going rate around here, the house definitely needs some work, they haven't listed it yet because they are giving us the first rights to buy. We have no down and we just got approved from a major lender on the contingency of gift money for the 200K down. My brother and his wife maybe interested so they might put up the 200K down which qualifies us for an approved lone for 800K, problem is we are short 100K. not sure what to do at this point. I'm a HVAC Technician in the commercial industry and have extensive experience with electrical and construction, I intend to fix up the house and refinance. Any ideas of what I can do.
Hanford, CA · Member since 2013 · 5k+ posts · 1k+ votes
11y
Do you have a lease or are you month to month? Ie when do you "have to leave"? If they would have to force you out you might be able to stay longer
Do the owners have a mortgage or do they own the house free and clear? If they own the house they might be willing to seller finance the home.
Get 3 realtors to give you comps so you know the true value of the home and the area. Don't want to get overpriced. Everyone thinks their house is worth x.
You can always go back to the landlords and say we can only get financed for X and see what they will do. Having the comps will put you in a better footing to negotitate. They will have to pay at least 6% for selling fees usually 10% if closing costs are needed. So if they would only get 900k on open market because of the condition, 800k is actually a pretty reasonable number to ask for!
Shop around brokers. We have found that every place has a different requirements for getting approved. For example, mortgage brokers not attached to a bank has approved us much easier than other loans.
Check out conventional 5%. If you can get approved for a higher amount you would only need to put 40k down on a 800k house.
Loan Officer / Processor / Life & Health Agent · Rancho Cucamonga, CA · Member since 2014 · 1k+ posts · 757 votes
11y
Hello Joe,
You can get financing for 90% with an 80% first loan and 10% second loan. This would mean you would only need 90K down which is a lot easier than 200k.