All Forum Posts by: Salley Smith

I had the same problem and couldn't find any lenders that would do that. I had to do a rehab loan since cash was not a possibilty. The days go buy quickly with a HUD home, hopefully your agent has done sales like that before. I would think a week out for a pressure test is a long time. I was going to have the contractors come during the pressure test so they could give me estimates right then (since I was doing a rehab loan). I have no experience with cash sales, so you are probably fine, but I know my HUD with a water leak and a rehab loan took over two months to close. Fourtunatly, since I was an owner occupant, they waived the expensive fees.

It sounds like to me that this property has so many problems that the bank will not allow finacing, becuase of the risk. If you agree to buy it, you would have to do a construction loan, like a 203K loan, like a renovation loan, where you promise the issues will be fixed. In this type of loan, they give you extra cash to fix the issues. My house had a leak, so there was no running water, so the bank would not give me anything other than a renovation loan. I think this may also be called a construction loan, but I can't garentee that. If this is the case, you would want the home inspector to be very careful and explain everything that would need to be fixed. You have to pay an approved contrato to do the work, so things get expensive very quickly. Maybe that's not what is going on, but ask them if you would need to get a rehab loan. Many great house flips are renovation loans. Mine wasn't too much, and we saved alot of money!

I bought a 20 year old home on 1/3 acre. No updates had been done to the house except a heat pump and a new roof. Exterior siding probably would look better if it was replaced, but is not peeling. Some minor peeling on some trim. Small deck needs to be replaced out back, and porch boards in the front. I recarpet ed with mid grade nylon the upstairs, and put modern click vinyl downstairs. Repainted the entire house inside. Downstairs, I painted all interior trim white, refinished doors white with new hardware, put crown molding on all downstairs windows, put new tile in downstairs bathroom and kitchen, painted all kitchen cabinets white,  new hardware, removed cabinets to install new island stainless steel hood, replaced all kitchen appliances for stainless steel. I even Redid the downstairs fireplace. Downstairs looks incredibly modern, upstairs looks nice, but doors and trim are oak, two upstairs bathrroms have not been updated. Appraiser says house is somewhere between a C3 and C4, but says if upstairs looked like downstairs, it would definitely be C3. I am frustrated becuase I think it should be at least a C3. Upstairs is well maintained, with all new paint and nice new carpet. What do you all think?

She is very nice and doesn't know my lender much, so I would say on my team.

I know. But I also know that she could probably make things really difficult for me, right? Like not making my loan close on time, ect. I'm wondering if I can switch lenders but it seems pretty late. My loan has to close by Feb. 20th, and she has already done a lot of work, and has got the bids in for my renovation loan, and I guess they are underwriting it now.  I'm just very disappointed. When they rate lock it, they lock it permenantly with the credit, then. She said we could go back and redo the rate today, but we would have to reprice the loan, reapprove it, and re look at the closing costs. 

I know. But I also know that she could probably make things really difficult for me, right? Like not making my loan close on time, ect. I'm wondering if I can switch lenders but it seems pretty late. My loan has to close by Feb. 20th, and she has already done a lot of work, and has got the bids in for my renovation loan, and I guess they are underwriting it now.  I'm just very disappointed. When they rate lock it, they lock it permenantly with the credit, then. She said we could go back and redo the rate today, but we would have to reprice the loan, reapprove it, and re look at the closing costs. 

I am a little upset. My lender had in her paperwork that we had to call her directly to lock our rate (no email allowed). I called her and she told me the rate was 4.25 or 4.375 with a 1,250 lender credit. We chose the second option, and now she is changing that credit to $750 saying she has nothing in writing that supports the $1,250 lender credit. I told her that I don't want this lender credit, and would like my original 4.25 rate instead. Now, she is wanting to charge me $1,000 to get my 4.25 rate back. Please advise.

I know, unfortunately I am on a very tight deadline with HUD and was told I had to go with someone who specializes in rehab loans. Our loan was at 3.875 while it was FHA and bumped up substantially to 4.375 with the conventional loan, but our lender has done a lot of work (collecting and processing bids, ect.), so I would feel bad switching. Additionally, I have already locked my rate. I really wanted to do a conventional loan and I understand that they have higher rates, but I was suprised with how much higher.

Ok, I'm sorry, I see that now. The former lender credit of 1,250 would have been debatable, but her new lower lender credit doesn't seem worth it.  I may even consider what you mentioned about lowering the rate more. That helps quite a lot! 

Ok, thank you. I understand.  One percent of my loan is $2,000 which means that each point is worth 20 dollars. She is giving me 38 points upfront ($750) for an increase of .125 percent in the rate, which is in your opinion a good deal. So, 38 points is about average for a rate increase of .125 percent? I don't know how long we will be staying in this house, but probably for at least 3 years, probably more. Additionally, closing costs are adding up, and I already did all my calculations with the $1,250 dollar credit. I am a little upset that the credit is so much lower than I was initially told, and now have to decide ASAP which choice to make. Thanks again for you help.