All Forum Posts by: Account Closed

Because my lender (conventional mortgage through a bank) botched giving me the rate we had agreed upon (I have an e-mail to prove.), in order for me to close on time, I had to take the incorrect rate (lower rate, paying more points.).  I leaned on the mortgage broker quite a bit, and he was able to discount the amount I paid for points by ~$200, and then said to me, "That discount is coming out of my commission, and if I discount this loan any more, we won't be able to sell the loan to Fannie Mae."

Is there a discount threshold where Fannie Mae will no longer purchase the loan?  I'm at 4.5 on an investment property, paying $705 for the rate (locked in mid-October).  A number of discrepancies have occurred while working with this lender, and I'm concerned that this comment was more of a pressure tactic than a true statement.  Any thoughts?

Hi all -

The mortgage agent who approved me for a conventional mortgage and agreed to have the the mortgage underwritten (he is not the actual underwriter) for a close next week on a rental property just came back to me today to say that he "didn't know that the seller couldn't cover more than 2% of closing costs."

On my current, signed contract, the seller agreed to a flooring allowance equal to 3.7% of the purchase price and closing coverage equal to 4.5% of the sale price.  Are repair allowances treated the same as closing costs?  Can I receive only 2% from the seller total (allowances and closing costs combined)?

Both the property and I are located in Virginia.  The mortgage agent says he won't be able to get me an answer until Wednesday (due to tomorrow being a bank holiday), so my agent and I are trying to prep for contract changes that will minimize the amount of money I need for close and repairs, and maintain the amount the seller is receiving.