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Old 08-20-2008, 09:16 PM
 
2,257 posts, read 3,453,413 times
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Just got off the phone with the buyer a while ago and he informed me that his parents would be the name the loan. I will call the broker tommorow to ask some questions as i know her personally. Shes done a few mortgages and refis for me and my brother. And NO ONE and I mean NO ONE has worse credit that my brother and she amnaged to get him a loan at a time when he was behaving

Oh yeah it is an FHA rural development loan so the it will be 100% with the closing costs included.

Next question Who orders and pays for an appraisal? In the past it seems ive had to do that when buying
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Old 08-20-2008, 10:36 PM
 
Location: Cary, NC
1,036 posts, read 3,627,137 times
Reputation: 503
Quote:
Originally Posted by bryan61 View Post
Just got off the phone with the buyer a while ago and he informed me that his parents would be the name the loan. I will call the broker tommorow to ask some questions as i know her personally. Shes done a few mortgages and refis for me and my brother. And NO ONE and I mean NO ONE has worse credit that my brother and she amnaged to get him a loan at a time when he was behaving
That sounds more reasonable... parents getting the loan for the kids, with everyone on title. She might have done a great job for your brother, but it also depends on WHEN she did the loan. In 2006 all you needed was a pulse.

No job, no credit, no assets, no rent? No problem! 100% loan for you.

Things are different these days. Underwriters are looking at details and the easy money is gone. I actually worry MORE about loan officers that used to deal with "sub-prime" clients. That was kind of the bottom of the barrel sales people (not saying she is bad, just generally speaking) that didn't understand the industry and just sold product because it was easy.

Quote:
Originally Posted by bryan61 View Post
Oh yeah it is an FHA rural development loan so the it will be 100% with the closing costs included.
You mean USDA. Similiar to FHA but there are restrictions on location and max income limits. It does allow 100% financing... but it can take a little longer than FHA to close.

One thing to consider, USDA only allows 1 home per borrower. Hopefully this was taken into account, I know many people jumping into FHA/USDA now because they are "hot" and they miss little details that crash the loan last minute.

Quote:
Originally Posted by bryan61 View Post
Next question Who orders and pays for an appraisal? In the past it seems ive had to do that when buying

Ummmm... if you have prior real estate experience and are selling an investment property this is a question you should know the answer to. The lender orders the appraisal, typiclly the buyer pays for it... but in this case it seems you are paying all the closing costs.
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Old 08-20-2008, 10:36 PM
 
Location: Columbia, SC
8,844 posts, read 17,437,561 times
Reputation: 6194
I'm going to offer one more bit and then you you're on your on -appraisal or no appraisal (after all, you did elect to sell w/o representation). Find out about the furnace up front so it doesn't bite you later. It's illegal to just "take care of it on the side" and is a major RESPA violation. All monies involved in the transaction need to appear on the HUD. If it comes to it the money should be escrowed, if allowed, and the buyer can do whatever they need done after closing. Talk to your attorney about it.
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Old 08-20-2008, 10:41 PM
 
Location: Cary, NC
1,036 posts, read 3,627,137 times
Reputation: 503
Good point Brandon - if the lender finds out about "side deals" like this, get ready for some problems. Money being exchanged outside of the HUD is illegal, it is like paying a kickback to a buyer to purchase your home.

There seem to be numerous issues with this transaction and every answer leads to more questions.
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Old 08-20-2008, 10:46 PM
 
Location: Columbia, SC
8,844 posts, read 17,437,561 times
Reputation: 6194
Quote:
Originally Posted by rcarrillo View Post
Good point Brandon - if the lender finds out about "side deals" like this, get ready for some problems. Money being exchanged outside of the HUD is illegal, it is like paying a kickback to a buyer to purchase your home.

There seem to be numerous issues with this transaction and every answer leads to more questions.
I can't rep ya because I need to spread it first, but you've offered excellent on this thread and others. I'll hit ya when I can. Too bad you aren't in my neck of the woods or I'd send you some buyers. I can tell you know your stuff.
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