All Forum Posts by: Satha Palani

Thank you @Nicole Pettis , I am prepared to go up to 108K, so we will see.

You mentioned having to use a consultant; did the lender assign one to you? and what exactly did the consultant do? How often did he/ she communicate with you?

thank you all for the quick responses. 

@Nicole Pettis ; I am pre-qualified for a loan amount up to 145K, meaning if if the final purchase price is 105K , and i put 10% of the total loan amount down, the renovation portion of the loan could go up to 54K. 

Does the following timeline sound about right?

1. Seller accepts my offer and i get an inspector to inspect the property. Should i get the contractor in there at this point?

2.I am satisfied with the report and go ahead and sign the contract of sale

3. I get a contractor to give me a line item quote for all the work that i intend to do, starting with code items followed by cosmetics.

What happens after this and at what point do the the consultant, FHA inspector and appraiser get involved?

@Sam McPeek You are probably right, at this point i might just go with the standard version. I certainly had to educate my loan officer when i spoke to him on Friday :). I have asked him to hand me off to a FHA specialist in his office if this goes through.

will definitely keep the info about getting the checks routed my way top of mind.

@Arthur Banks I read you thread and learned tons from it. what a wealth of information!

Do you think GC's that handle FHA work charge a premium for the trouble. I am just curious.

thanks again for all the info, i hope to keep you all posted.

P.S> agent just texted me that she got a counter offer from the seller for $50 less then the asking. looks like they were not amused by my initial offer. Asking was 115K btw. Negotiation advice is more than welcome.   

I have an offer in on a duplex in an up and coming part of the city. The house needs work and is being sold "as is" The plan is to live in one unit and rent the other one out. At the prevailing rate, provided the cost to fix is does not exceed 110% of what i have budgeted, the rent will pay off the mortgage. The house needs both baths and kitchens to be remodeled, some electrical work, windows to be repaired / replaced and a new HVAC system. Currently it has oil furnace heated radiators, which by the looks of it is not functional. 

3 questions:

1 - Any thoughts on whether i should go with the streamlined product (35K max) or the standard? I have some reserve cash that i would use to supplement any repairs beyond the 35K mark. Is this a sound strategy?  Can i even qualify to use the streamlined if I am replacing the HVAC ?

2 - Since the house is being sold as is, is it worth getting a regular inspection on it? Also, should I hire a structural engineer to tell me if the structure is sound?

3 - Thoughts on hiring a FHA consultant to do the inspection. This is more costly then getting a regular inspector and not required if i am using the streamlined product; question is would I be saving time, money and effort by having a report that tells me what to fix such that I meet the FHA guidelines?

Here are the numbers:

purchase: 97K

Closing and others: 6.5K

Renovations: 40K

Down payment: 10%

monthly loan service (net of tax and insurance): $581

A nice 2BR/1BA in the area will rent for $750. 

any and all help is greatly appreciated.

Thanks Wayne. Any idea if different brokers have different thresholds? In other words, would i be wasting my time shopping around?

thanks,

satha

Hi,

I have a pending offer on a duplex that is being offered below assessment.  Its currently tenanted and i am buying it together with the leases (1 year term). The house needs work but the type that can be done in bits over time and that will in general increase the rental value. Long story short; its a good deal (assuming i get it at the price i offered). 

I have not heard back form the seller yet (offer went in yesterday), I am pre-approved for a conventional 20% down  mortgage for up to 10K above my offer price.

Today the mortgage agent sent me a note saying that their underwriters requires i show proof of funds to cover the following for multi-family investment properties.

1. 25% of the purchase price as down payment

2. Buyers portion of closing

3. 6 months of loan service

I have 20%, the closing cost and 2 months worth of service. I take on the leases at closing and the rent is 2X the monthly mortgage.

Are these terms normal. Seem somewhat excessive to me. My mother agreed to gift me some money to cover the difference but apparently gifts cannot be applied towards investment properties

Is this normal? or is the broker trying to get rid of me? Can i go elsewhere?

Any and all assistance is appreciated.  

Thanks,

satha

Hi,

I have been lurking around here for a bit and have got a great deal of insight from the site already. 

Not really an investor per say, looking to buy a rehab from Fannie Mae for me to live in and am looking for advice on everything from negotiating to loans.

Thank you all for the wealth of knowledge..

i look forward to participating in this forum

Hi,

Fannie mae just accepted my offer on one of their properties. I have yet to do an inspection (waiting for them to turn the utilities on). While i was there today, i ran into a neighbor who told me that the house was "condemned". The previous owner was a slum lord who did not bother with repairs and the last tenant had the city inspector come out to the property. apparently in Richmond VA, a report from the inspector stating that the house is not fit for occupation is sufficient to "condemn" which is then grounds for the tenant to break the lease.

I am aware that the house is being sold "as is" and that with REO's we should not expect disclosures and i am fine with that. My question is; can i use this as grounds to negotiate the price down? The house is discounted and the discount reflects the amount of repairs required. The "condemnation" add a level of complexity (codes / permits) that i did not take into account in my initial offer price.

How do i negotiate with fannie? Any tips from those who have been in a similar situation. I am eager to ensure i am not over paying.

any and all help is welcome and appreciated.

thanks

Thanks a ton! @Robert Leonard, Just to be clear, does this mean that  Fannie will prefer cash offers over others?

The property is a great deal "as is". I would not mind doing a 203 FHA and move in if that is what is needed.

Do you think i will stand a fair chance if I offer to go that route..

i am looking at a homepath home as well. When i run the search with the home path loan checked the house i am keen on does not appear. Looks like it is not eligible for a homepath loan.  The house need a fair bit of work. I can (if needed) move into the house once it is fixed up. What options would you recommend. Hoping to finance as much of the deal as possible