All Forum Posts by: Account Closed

More simply, can anyone comment on creative ways to minimize initial out-of-pocket cash by using a combination of a non-conventional loan and a HELOC or other?

Hello BP,

I am in the process of hunting for creative financing for my first primary residence purchase. Please comment if the below scenario looks like a good combination. I want to buy a 2-4 unit multi next so this will help me save some cash for that.

$327,500 purchase price

15/1 ARM with 10% down @ 4.033% for monthly payment of $1255

10% HELOC 30 yr @ 7.74% for monthly payment of $231

Plan on paying off more than the minimum on the HELOC every month.

Quotes 30yr fixed have been coming on around 4.25 so the monthly payment will be about $1,300. So for $1455 a month or $155 more, I will be able to save $32,750 in down payment which can be used to purchase my first multi.

Thoughts? Thank you in advance for your help. Again, this is my first time purchase so if we need more information please say so!

Bill

Hello BP Community,

Just signed a purchase contract as a buyer in Florida. The seller has an agent but I do not as the buyer. The seller's agent prepared the contract, had the owner sign it first, then presented it to me. In the additional terms, the agent added "Buyer agrees to pay (RE Firm) a regulatory compliance fee of $349 at closing." I do not think this is fair since the agent is presumably collecting the additional 3% buyers agent commission. My RE lawyer said absolutely do not pay that, so I crossed it off. Has anyone seen this and what is your take on it?

Also, we added an additional term limiting or capping the closing agent's fee to $395 and agreeing to pay $25 for the simultaneous issue fee. Verbiage said that anything is excess of these amounts will be paid by the seller.

Thoughts or comments on the above? The seller has two days to respond.

Thanks,

Bill