All Forum Posts by: Account Closed

Hi Andy,

Actually, he gave me 4 estimates  with 4 different rates 3.25, 3.5, 3.75 and 4%.

The origination and discount fee disappears at 3.75% so I'm assuming that's the one I'm actually qualified for or somewhere between that and 3.50%

Thanks

Aren

Here is the scenario. I first started out with a 680 credit score when I approached my loan officer (at Suntrust) back in March and he gave me a 3.75% interest rate, I'm still looking for a property up to now and my credit score had jumped up to 736 so I asked him if he's able to get me a lower interest rate since it's been a few months and my score had jumped up. My loan officer then tells me yes and specifically states the the rates have lowered a bit since then so he gets me a 3.25% but he gives me an origination and discount fee. If the rates have lowered, why am I getting a discount fee?

Can anybody shed a light on this, I'm an inch close to getting a different loan officer.

Morning BP!

Looking at a property that was last bought with a Bargain and Sale deed. Any experience with Bargain and Sale Deed? Should I expect at least a special warranty deed on this or something like a quit claim?

Thanks in advance!
Ed

@Eugene Finley

It might have just been a bad seal for the window because that specific window is found in the old garage that had been converted to an extension of the kitchen. I couldn't tell how the roof was at the time we viewed it because there was a thunderstorm and it was too dark to see. However, there were no sign of leakage anywhere. The thing is, they winterized all plumbing so that's a little fishy.

Just got a text message from my agent, they didn't take our offer. I guess it was worth more than 15,000 above asking price to somebody. I was going to buy it for a future buy and hold but it just didn't feel it was worth it to buy something at 80,000 that I'm sure needed some repairs.

Hello,

I've recently put in an offer for a VA Repo that's $14k above the asking price give or take using a VA loan. It was priced at $61k taking final offers today and I put in $75k competing with around 10 people who had already seen it. It's 1200sq ft (probably more because it certainly didn't feel like 1200 sq ft when we looked around) sold as-is with special warranty deed and on the surface there are very little cosmectic problems with the house except for the carpet and walls and one moisture damaged window. I'm curious as to how much flippers would normally put on a VA Repo like this? (I however, will not be flipping this because of my VA Loan. My wife and I will be staying on this property relying on the low mortgage to save up some money and this will be our first property if we do get it.)

Based on your experiences, does using a VA loan bring me at a disadvantage or is that something they prefer?

@Andy Robison

Unfortunately, we couldn't get it. It's not eligible for VA so nobody wanted to touch it. And without VA to guarantee it, lenders wouldn't give us the money for it. Basically, we had two choices left, go conventional or portfolio but we didn't have the money for the down for either (which was $17,000 @10% for portfolio and $34,000 for conventional). It was just too risky for the lenders. That property was such a loss. We could have lived in it for free. Well, it was a good lesson to learn. The only thing I saw wrong in that was, it was residential, just about the same size of every house, and VA won't touch it because it's a duplex in a SFH only zone. It's not a house in an industrial zone. Just the wrong type of residential property in a residential area. It's complicated but it shouldn't be.

@Pete T.

Thanks Pete, you're right. Do you remember the name of the person from planning? I believe my loan officer had already talked to the underwriter and a VA Rep about whether VA will cover this property but as far as official documentation saying they won't, I haven't seen any in fine print. I told my loan officer I wanted to get a direct reference from the VA Lender's guideline to where it talks about the issue we're dealing with but I have yet to get that reference.

My loan officer won't be able to talk to planning until Tuesday because of memorial day.

Will do. I'll let you all know what VA says.

That's right Andy, he's worried that VA might not guarantee the loan for that specific property because it's non conforming to zoning regulations in that area. I'm worried because my loan officer's worried and that makes the property look bad but I don't see why VA would not consider it eligible, from what I've heard they seem to guarantee loans for mixed use properties in a residential area all the time as long as its in a reasonable stand point so I don't see what the problem would be on something this simple.

That's alright Cal, it's still good information to know.

I'm using Suntrust right now. I'm hoping my loan officer is just over thinking it.