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Old 11-28-2013, 07:48 AM
 
17 posts, read 32,924 times
Reputation: 12

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Looking for some advice on current scams to watch out for in my current loan situation. I'm currently in an FHA loan and have only about 7% equity, based on what I think market value is at this time. I've got a lender who says he can "fudge" the appraisal to get me 10% equity, get me a 90/10 fixed loan w/ no PMI and no money out of pocket. Sounds too good to be true. This would save me about $350 a month and would only add about 2.5 years to my payment, which I could easily make-up by adding on to my monthly premium payment. Is this too good to be true?

Lastly, the lender won't give me any rate figures, but I wonder if this is just because they fluctuate until we lock our rate. Or, is this something to be wary of?

Thanks!
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Old 11-28-2013, 09:36 AM
 
Location: Bloomington IN
5,865 posts, read 7,089,766 times
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I would be very suspicious of any lender that says he can "fudge" the appraisal-especially on an FHA loan. Fudged appraisals are one reason for the recent housing crisis.

Find another lender.
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Old 11-28-2013, 09:58 AM
 
3,317 posts, read 7,255,247 times
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Fudge ain't legal, bro.

Depending on when you got your loan and what your rate is, you might look at an FHA streamline, but only if your rate is considerably higher than, say 5.5% - and even then, loan SIZE comes into play. You might just be best off sitting tight.

Maybe save up and look for a lender who can do an 80/10/10 for you down the road.
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Old 11-28-2013, 02:51 PM
 
17 posts, read 32,924 times
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Hey guys,

So far you're echoing my thoughts exactly. Wondering how he's planning on getting rid of my FHA fees if I have only paid 2 years. I guess a straight re-fi is like paying off the original loan? Does that mean five years worth of fees must be rolled into the new loan?
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Old 11-28-2013, 05:22 PM
 
Location: Southern California
4,350 posts, read 4,931,746 times
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Quote:
Originally Posted by doinker View Post
Hey guys,

So far you're echoing my thoughts exactly. Wondering how he's planning on getting rid of my FHA fees if I have only paid 2 years. I guess a straight re-fi is like paying off the original loan? Does that mean five years worth of fees must be rolled into the new loan?
I'm guessing it is lender paid pmi and you have more equity than you think. Who pays for appraisal if the value doesn't come in.
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Old 11-28-2013, 07:46 PM
 
Location: Austin
7,077 posts, read 16,889,211 times
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FHA isn't 5 years MIP anymore, it's LIFETIME! Think about those payments...
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Old 11-28-2013, 07:56 PM
 
16,492 posts, read 17,513,441 times
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Quote:
Originally Posted by FalconheadWest View Post
FHA isn't 5 years MIP anymore, it's LIFETIME! Think about those payments...

This^^^
I think may 2013 is when it started.
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Old 11-29-2013, 12:11 AM
 
Location: MID ATLANTIC
7,598 posts, read 17,623,584 times
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You need an appraisal, it's that simple. My last customer had an appraisal come in 20 higher than any of of the guesstimates. Sometimes you have to risk $450 to save a bunch.
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Old 11-29-2013, 02:16 AM
 
17 posts, read 32,924 times
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I'm still in the 5 year FHA agreement. Let me ask this. Is there such a thing as a 90/10 with no PMI?
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Old 11-29-2013, 05:05 AM
 
Location: Southern California
4,350 posts, read 4,931,746 times
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Quote:
Originally Posted by doinker View Post
I'm still in the 5 year FHA agreement. Let me ask this. Is there such a thing as a 90/10 with no PMI?
Not with FHA. There is conventional with 90/10 but you still have pmi but just don't see it. You'll have a higher rate than a pmi loan, but unlike the the pmi option, your payment will not drop in the future.

I'm unsure how he'd fudge the numbers. I think the guy/girl loan officer wants you to think they did magic with the appraisal , when it is truly just the market, think of the guy that takes credit for making the sun reappear after an eclipse. I could even see this as a 93% LTV conventional, where you either take the lump sum of PMI and finance it up front so nothing comes out if pocket, or take a higher rate. Either way I wouldn't work with some who presents themself as doing something illegal and shady, because they might actually be.

Last edited by thelopez2; 11-29-2013 at 05:33 AM..
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