All Forum Posts by: Suzette Lowery

good luck suzette...it wasn't a terrible deal...there's just so many deals out there right now, that we want you to get the best, instead of settling on a marginal deal! keep looking--they're out there!

Originally posted by Suzette Lowery:

My question is what would be the maximum that you bid. I assume I would get vendee financing with 5% down, but the loan officer said 20% because my credit score is 666 and not over 680.

We're about to close on a Vendee Financed house and the process has been quite frustrating. I'm curious as to how your experience has been so far. One thing I'm puzzled about is the loan officer telling you 20% down on account of your credit when the Vendee Financing brochure from the VA distinctly says it's NOT a credit driven product, i.e., they are only concerned with your income.

BTW, my wife is the one purchasing this house and I believe her credit was just under 680 and we're only putting 5% down. You should ask to speak to some other loan officers at BofA since nobody there seems to understand this program completely.

great point steve! (tried to vote you up but my votes aren't working-owell, i guess you have enough influence already) i've learned on here that you don't want to pay for cashflow..you can make any property look like a great investment by buying down the mortgage with a larger downpayment, but you're essentially just paying for cashflow....make sure the property cashflows assuming 100% financing and you'll be golden!!

The disparity between the analysis BryanA did and what the OP showed stems from BryanA calculating P&I on the full $75K purchase amount, whereas the OP calculated the P&I on only the amount being financed (~0.8 times $75K). And of course that difference improves the amount of "outgo" for the OP.

If this is an area that looks like it will be appreciating in value in the upcoming years, this is probably not going to be a bad deal. But if values are going into decline in that area, then it's probably one to avoid.

I agree with Bryan. There isn't any room to make money here. I'm sure you could find a much better deal than this.

Keep persevering and you'll find a winner...

if you're renting for 1,000, then assume 500/month in expenses..that leaves 500 for payment and your monthly cashflow...a payment on 75,000 at 6.3% over 20 years is 550.38. is your loan going to be for 20 or 30 years? also, that's assuming you get it at the 75k you want. even if it's amortized over 30 years, your payment is 464, soyou're only making 36 bucks a month...

Hi Suzette-

Here are my thoughts:

Assuming the house doesn't require more than the carpet in one bedroom, it could be a deal. Lets assume 80k purchase. You will bring ~17k to the table before closing costs, so probably around 20-21k if seller doesn't pay any closing cost (which I would try to get them to cover). Even at financing roughly 70k you would still only have a mortgage payment of roughly $435/month. You theoretically are under the 50% rule. Is it an unbelievable deal, probably not. Would it add it to my portfolio at 80k, probably- especially if it was a newer house and I knew it wouldn't be causing too many problems and I believed the true ARV to be over 100k. My biggest concern would be tying up 20k.

Here in Texas there are houses to be bought for around ARC (after repair cost) 65k that will rent for $925 which means a little less money tied up and a little better CF.

Good Luck on your first deal, but don't get caught up in any one deal as there are many out there.

if you're trying to rent this, i don't think it's a winner..sorry to say...check out the 50% rule in the forums here.