Hi everyone,
Back with an update and seeking some advice in preparation for my next offer. I made my first offer on a 2/1 SFR (along with an EMD) at the beginning of February with a closing date set for this month. However, as of Friday, I've been released from the contract.
Here's what happened:
-$7-10k in damages found--lots of back and forth & second quotes in an attempt to get the seller to correct the damage which could have happened but then;
-The ultimate deal breaker though came down to a TITLE issue: Does anyone know about illegal subdivisions?? Lots of back and forth again, attorneys--the seller disputes the findings based on no issues found when they were the buyers a few years ago;
-Ultimately, I could not close based on my loan type.
PROS: The seller actually agreed to pay closing costs--that felt like a win, lol. And, by going through with making an offer, my confidence grew. I'm definitely beginning to understand the process more. The property had tenants in place which was a good indicator to me in terms of the ability to fully rent the property.
CONS: My loan type (FHA) will be problematic in terms of inspections--there will be damages in most of the properties in my price range which is the other issue. Very low approval--which was shocking due to my student loans; well DTI. The .5% calculated monthly payment is putting me above the DTI criteria for a conventional (credit score is fine). Any advice on finding more money, changing the loan type, or tips on working with an FHA loan? I do appreciate the lower down payment but perhaps there are other options to consider. I am preparing to make another offer this week. Appreciate any feedback and advice!
