Deborah Madey - New Jersey

Hi,

Why do you think the agent did not send in your offer? It is common for banks to be slow to respond to submitted offers. It is highly uncommon for a bank to sign off on an offer as "rejected" for your verification. Knowing that agents often become frustrated with banks who do not respond timely, or at all.........I would guess the odds are higher that the agent did submit the offer.

However, I am only referencing the odds and do not know any details about your offer.

Since it is improbable to get any verification from the bank, my suggestion would be to ask the agent to provide you a written verification of when and how your offer was submitted. You might want that via an email correspondence, or on company letterhead. I would have not objection to providing that to a buyer.

Alternatively, if you remain distrustful of the agent, I suggest you contact the broker and explain why and see what verification the broker may be able to provide. If the agent submitted via private fax or personal email, the broker can only provide you what he/she obtains from the agent.

I suggest that you first simply ask the agent for confirmation.

Best of luck
Deborah Madey - Broker
Peninsula Realty Group - New Jersey - Mon May 18 2009, 10:28

HI Valerientn,

Not part of your question....but an important consideration for you if you are considering an FHA loan. An FHA loan will require an FHA inspection. An FHA loan can not be underwritten unless it passes this inspection or any deficiencies are corrected. Do advise your Realtor that you will be pursuing an FHA loan before you begin searching for properties so that you can become familiar with this requirement.

Best,
Deborah - Mon May 18 2009, 10:20

Hi Valerientn,

I am standing on my prior post with an addendum.

FHA minimum downpayment is 3.5%.

HUD is the authoritative source for anything to do with FHA loans. A direct quote from HUD delivered live to industry leaders and the media at a national conference is a reliable source. This was less than 1 week ago. The paragraph I cited was an exact quote.

Your question was about FHA’s minimum downpayment and that has been fully answered with consistency from several real estate agents.

There are sometimes programs available for certain properties, or limited to persons meeting very requirements that offer grants or other types of assistance or either downpayments or closing costs. None of us online would be able to inform you if such might be applicable in your situation.

The people who have suggested that you look into this avenue have done so with sincere desire that you, and every potential buyer out there, know that these programs exist and explore that possibility.

Best of luck to you.
Deb - Mon May 18 2009, 10:04

Hi Valerientn,

I attended the National Association of Realtors Midyear Conference in Washington DC last week. At that conference, the Secretary of Housing and Urban Development Shaun Donovan stated:

"We all want to enable FHA consumers to access the tax credit funds when they close on their home loans so that the cash can be used as a downpayment. So FHA will permit trusted FHA-approved lenders and HUD-approved nonprofits, as well as state and local governmental entities to "monetize" the tax credit through short-term bridge loans. We think the policy is a real win for everyone, ensuring that borrowers can tap into the numerous organizations that are already part of the FHA network to receive this additional benefit. FHA will be publishing the details shortly."

The above is a direct quote from the prepared speech delivered at the Real Estate Summit at the NAR Midyear Conference.

FHA guidelines require 3.5% down. There are some local programs which may help homebuyers that could reduce that amount. The FHA guideline, however, is 3.5%. To find out if there is a local program in your area, check with lenders and Realtors who specialize in FHA or first time homebuyers.

Good Luck
Deborah Madey - Broker
Peninsula Realty Group - New Jersey - Mon May 18 2009, 08:51

It is difficult to predict what action the town will take. Within a given town, I have seen a simple remedy of filing permits, and I have also witnessed a order to completely dismantle completed construction.

At some point the town will most likely find out about the work completed without permits. When you sell, the buyer may uncover this, or a CO inspector may research prior permits.

Although none of us can provide you a heads up about what to expect, all of us agree that sooner vs. later is a better strategy. - Thu Apr 30 2009, 23:59

When a buyer asks for any amount in back in closing costs, the buyer is asking the seller to pay that specified amount in lender and third party fees that would typically be paid by the buyer. Examples of these closing costs may include loan origination fees, appraisal, survey, title, attorney fees, and even points to buy down the interest rate on the buyer’s loan.

The purpose of a buyer asking a seller to pay this is to lessen the required cash required by the buyer at the closing table. This could be because the buyer is short on cash…..or it could be because the buyer simply wants to conserve cash.

When a seller contributes toward a buyer’s closing costs, it is known as a seller concession. When a seller accepts your offer of 300K and pays a buyer’s closing costs of 10K, the seller has, for all intents and purposes, accepted an offer of 290K. The buyer’s lender, and the appraiser will consider the concession, and the property must appraise for the full the value of the sale contract amount of 300K. A failed appraisal would likely terminate the deal.

Lender guidelines generally limit seller concessions to 6% of the sale amount.

If the appraisal supports the sale contract amount, seller concessions are a great vehicle for a seller to move their property and a buyer to conserve extra cash.

If third party expenses total less than 10K, contributions from a seller concession can also be used to buy down an interest rate by paying points. This allows the buyer to enjoy a smaller monthly mortgage payment as a result of the lower interest rate. Seller concessions may not be applied to the down payment, as a seller would be…paying themselves. Sellers can only pay third party expenses on behalf of a buyer.

No seller should ever pay closing costs outside of closing without the lender’s knowledge. No buyer should participate in such activity. Any concealment of these payments without the lender’s knowledge is fraud. Seller concessions, when made as part of the open transaction can result in a win-win for everyone. - Thu Apr 30 2009, 16:56

A local Realtor will provide you data from the MLS, and perhaps, a few exclusive listings known to that Realtor. A local Realtor will most likely not be providing you data from third party, such as REnt.com or Craigslist. The rentals in MLS are not all inclusive. I suggest that you do an internet search to familiarize yourself with offerings and prices. Next, contact a REaltor and look at properties that meet your criteria. You might find a great property without having to navigate multiple other sources Good luck - Tue Apr 28 2009, 16:18