All Forum Posts by: Salley Smith

I am buying an REO HUD home for 210,000 with 10,000 (5% down) on a conventional renovation loan. My lender told me I would receive a lender credit of $1,250 at 4.375% vs. no lender credit at 4.25%. I went with the lender credit, since it would take 6.5 years to break even (the point where the lender credit would no longer be worth it because of the amount of interest I would have paid). She is now changing that lender credit to $750, and saying that she never remembers the previous conversation. It appears she misspoke, because even the documents she had previously sent me included the $750 number, which I hadn't noticed. I am not sure if this new lender credit is worth it- the break even point is just a little under 4 years. Please advise if you think this .125 percent rate difference is or isn't worth the $750. Thanks for your time.

I was in a similar situation, I wanted to do a FHA or conventional loan on a property that had a leak where HUD wouldn't allow the water on. The problem is that the appraiser won't like the fact that the water isn't on, so I ended up having to do the 203K. I had money to fix the leak as well, but HUD won't let you fix it until you own it, and they do the apprasial before you own it, of course. I called quite a few lenders, but it seemed impossible that they would allow me to do anything else other than the 203K, although I did find a lender which allowed a conventional 203 rehab loan as well.

Yes, HUD did show it as an IE property with a certain amount in repairs, however there number was completely incorrect according to the last inspection done. Additionally, there was an additional leak they were unaware of. We are guessing the house will need an extra 10,000- 15,000 dollars in repairs in addition to what HUD stated on the website, depending on inspection. Unfortunately, no lenders want to give me bids until then.

I am in the process of trying to buy a HUD home, and my contract was ratified last Tuesday. I just found out that we have to do a 203K loan yesterday, after finally hearing back from HUD and the listing agent. Now, my buyers agent says I have to have my lender chosen by Friday. They say it is a 10 day deadline. The problem is I don't yet have the bids yet for the 203K, so I haven't been able to choose a lender yet, since no one wants to run even preliminary numbers without the bids. Has anyone heard of this deadline? Does it have to be a completely final choice? Any imput would be appreciated.

HUD has recently ratified our contract, and we now have 2 weeks to get financing. However, the listing stated "water won't be activated for inspections/ apprasials." Apparently, there was a recent leak somewhere in the house after HUD did their initial inspection. The selling broker only knows there is a leak, which probably hasn't caused significant damage, and nothing more. Our agent has contacted HUD directly, or the third party that works with HUD, and they state we should be able to pay for the water to be turned on, and there is no leak they are aware of. I'm not sure if this means they fixed the leak, I know they typically don't do repairs. We are worried that if we do a conventional or FHA loan, that they won't give us the finacining since the water isn't on/ there is a leak/ it fails the pressure test. I really don't want to have to do 203k, since it is an extra 300 a month. The house already needed 4400 dollars of repairs prior to this leak. What are my options? Should I pay to turn on the water and have a conventional apprasial, or what would you recommend? Thank you.

Ok, good to know.  Neither one of my agents or the mortgage lenders know what number to put on my letter. 

Thank you! If the bid was for 200,000, would I need the pre-qual letter to say 200,000 to submit to HUD, or should it be for more, if I was planning on taking out more for the 203 K loan?

When our real estate agent was submitting an offer to HUD, they checked the 203K box. Our bid was accepted, and It turns out now that the house does not need as many repairs as we were expecting. We were wondering if we can change the 203K loan to a conventional loan, or if that would change the contract, and cause the house to go back on the market. We only have 48 hours to get everything in, and we don't want to do anything incorrectly.

Thank you so much for your help. I was also wondering if I had placed a bid through a buyer's agent with the listing agent company (with the backup box checked) and after that, HUD had reduced the listing price of the property, and I wanted to place another bid with another buyer's agent from a different company, if I would need to cancel that original bid. I would prefer not to have to cancel that bid, if it is automatically deleted when the price drops.

I have heard that when HUD bids are placed that the buyer's agent can't see the other offers, but the listing agent can, and can see the exact amount that was bid. I had thought HUD bids were anonymous, and only the bank was able to see those offers. Obviously if the listing agent was able to see the bids, this would put them at a great advantage. Please let me know what your thoughts are on this. Thank you.