All Forum Posts by: Sam LoCascio

Help! I have a HUD home under contract. I got preapproval for a 10% down conventional loan and we were all good until (long story short) in the 11th hour my lender told me I didn't have enough credit history to qualify for the loan. He said the only way we can close on this house is if we do 20% down (which is not an option for me) or if we switch to an FHA loan. We're scrambling now to amend the HUD contract to FHA financing and I'm hoping someone can give me some insight! We can do a closing date extension for $375. I really want to switch my lender but I don't even know if this is possible because of the HUD contract.

My Questions:

-Is it worth paying the $375 and trying to switch to an FHA loan or should I just let the contract fall through?

-Can I switch lenders within this HUD contract or am I legally obligated to go with the original lender on the contract?

-Should I try for the $100 down program or just do 3.5% down?

-Has anyone ever been in a situation like this before? Any recommendations for financing my situation?

*I should mention my area is pretty attractive market so I bid above the asking price. My offer was accepted at 172,500 and the asking was 160,500. The property is a 3/2 with a detached mother in law apartment. The appraisal came in at $172,500.

@JT Spangler 

Thanks! You're right. There is a lot missing and I guess it may be one of those things where speculating is only going to get me so far.. I'm sure my views will change once I start sitting down with brokers and look at the numbers. I knew there were going to be some limitations on the FHA, but didn't really know how much. I also did not know about the MIP. From the sound of it, it may be better just to save a little more and go for the 5% down, owner occupied scenario. Glad to hear you've found a good lender here in Nashville. I will be checking them out. Thanks for the info !

-Sam

 Thanks Peter! I'll probably be doing a little more shopping then.  Appreciate the input

-Sam

Hey there! I need help!

I'm a first time buyer (Nashville, TN) looking at financing and wanted to get some unbiased input! I've got about 12k in reserves, good credit, and a steady job. I'm getting ready to do my first deal and I was hoping someone could recommend some good numbers to look for in a first time loan? (please excuse any ignorance :)) I'm hoping to do an FHA (3.5% down) possibly with a 203k if it needs repairs. I will be living in the property at least for the first year.

These are the rough numbers I am expecting right now :

Loan amount: 180k

Down payment: 3.5%

Interest rate: 3.734%

type: 30 year fixed

PMI: 1,702/year ( .9%)

Some questions I have: 

- Is this a good loan for a first time investment property?

- What do I do if my lender comes back and says the best they can do is a much higher interest rate? 

- Will it hurt me (credit, reputation) to "shop" different banks and lenders?

- Is there anything I can do to not be "tied" to the PMI?

- Should I let the lender provide the Home Owners Insurance, or should I seek out a policy myself, or does it not matter?

I don't want to be impossible with my expectations but I also don't want to sign onto a bad loan. Sometimes I feel like loan officers can't really offer truly "unbiased" advice. hmmm . I'm going to be doing a couple of meetings soon and just wanted to come prepared:)

Any input is appreciated SO much!

Many thanks,

Sam

@JT Spangler  Thanks for your post! I'd love to hear updates on how it's going. Really like that area a lot. 

-SL

Hey there!

Currently loving the info I've been getting off of BP so I thought I'd ask a question!

I am looking for a new place in Nashville and I'm enticed by these 3br 2ba houses with walk out basements. There are neighborhoods here where most of the houses sit on hills, which give the basement area great sunlight and their own private access. For a first time purchase, I have been entertaining the idea of renting the top as a separate unit and renovating and living in the basement unit. I've seen quite a few of these apartments around Nashville and they seem to make sense cost wise. I know I'll have to obtain permits, set aside costs for rehab, and plan accordingly so the renovations are to code. It seems like a great idea to me but I wanted to get any locals take on the idea as I may be WAY off with my speculations or I may have overlooked something very important.  Any way, if any one in the Nashville, TN or regional area has any insight (good, experiences, bad experiences), I'd love to hear! We can talk over BP or grab coffee/lunch if you're local!! 

Thanks and happy investing !

-SL