HELP HELP....Attempting to Close on a Short Sale Home and I have many questions (3%, agent)

[Neek535]

Ok, the scenario is. I'm the buyer attempting to use Nehemiah/AmeriDream funds prior to the end of this month when programs ends. This is a short sale and my proposed asking price was 250K, but bank increased to 253K for value purposes they say. So, the seller has agreed to 3% concession and Nehemiah/AmerDrem would also contribute 3% which give me a total of 6% concession help.

My questions are:

1) Is there a website or could anyone assist me with what charges I should see on a Good Faith Estimate, I would like know whats absolute and whats fluff?

2) Since this is a FHA loan, how much of closing costs are required?

3) What are todays rates looking like?

4)I'm not sure how to calculate this stuff, what should I expect to see on a Good Faith Estimate?

5) How long does underwritting usually take?

6) If I don't make the time cut for the ending of DPA programs, do I have any other options?

[FalconheadWest]

I think you need to talk with your agent. I don't think you quite understand what is going on. If the seller/bank has agreed to only 3% concessions, then you are NOT using the Nehemiah or AmeriDream program. With those programs, the seller/bank HAS to give the funds to the charity to give back to you to close.

I don't know a single bank that will do this. They have been flexible with closing costs as they used to not allow that, but in my experience, and I've closed many short sales, the bank is NOT going to give another 3% to the down payment assistance program. You need to get those details worked out before you move forward with any other questions.

[TampaKaren]

I worked with a short sale and first-time home buyer this past July who got 6% in AmeriDream downpayment assistance. We closed under 30 days. The lender was Universal American Mortgage (Lennar).

If you've applied for a loan, your lender will prepare a good faith estimate. There are bank and mortgage websites with an estimator, but so many factors apply, I don't think it's a good idea. IMO, you need to apply with at least two lenders and compare rates and charges. You don't shop for a car at only one dealership and this is a much larger purchase. ASK QUESTIONS AND SHOP AROUND!!! It will be a large PITB, but how often do you plan to buy a house?

FHA requires a 3% downpayment from the borrower. That's supposed to go to 3.5% if it hasn't already. The maximum allowable closing cost assistance in most cases is 6%.

Today's average rates are under 6%, but your credit score and payment history will have a LOT to do with the rate you're quoted.

You didn't say where you're located, but there are many federal, state, county, and city programs for first time homebuyers. You really need a well-qualified and very experienced LOCAL lender on your side.

[Neek535]

I've been told that I am receiving 6% in concessions. I am also a first time home buyer. I wish there was more information for me to read up on this because I'm totally lost. I'm located in Maryland, I wish I had time to shop around more, I'm working with two different lenders now but the programs end at the end of the month so I'm kind of rushed.

[Brandon Hoffman]

Don't waste too much of your time learning the short sale process. That's why you have an agent. I suggest scheduling an appointment with your agent to go over your questions/concerns.

[ydnar investments Inc]

In my many years dealibgs with banks and such. You hold all the cards not the banks or your agent

[ydnar investments Inc]

In my many years dealibgs with banks and such. You hold all the cards not the banks or your agent

[Silverfall]

You should have already received a GFE.

ydnar, typically this would be true for a bank dealing, but the DPA programs are gone at the end of this month. No closing, but then no money. The buyer can't play hardball if they want DPA not enough time.