Home Buying in Houston>Question Details

Demilu77, Home Buyer in Houston, TX

Please Help need a conventional loan ?

Asked by Demilu77, Houston, TX Thu Jun 21, 2012

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Barbara Coker, Mortgage Broker or Lender, San Antonio, TX
At this point, it sounds like the value is $3,000 under your sales price even with those repairs. HUD aleady had an appraisal which you could have used, but with 20% down, who would want to pay all that MIP? I have 3 ideas you could look at, but they won't happen quickly.

You could find a short-term purchase/rehab loan through a portfolio lender, like a credit union. You supply bids for the work you plan to do, and have another appraisal done with an "as completed" value. You put 20% down on the total acquisition of the house (sales price + work cost), and the lender escrows the repair funds until they are complete. The drawback here is that you'll be refinancing that short term loan into a permanent loan at sometime in the future. But it would get you closed relatively quickly right now.

You could switch your conventional offer to a 203k FHA rehab loan, or a FannieMae Homestyle rehab loan. Both again have you submitting bids for all of you desired work to arrive at an "acquisition" cost. These will all take signicant time, and you'll most likely be paying for extensions on your HUD contract.

Good luck.
Barbara Coker
NMLS#228545
Licensed Mortgage Loan Officer
100% Home Loans All Over Texas For 30 Years!
Web Reference: http://www.thecokerteam.com
0 votes Thank Flag Link Fri Jun 22, 2012
Have your realtor introduce you to the local loan officer they trust the most. Good luck,

Jim Simms
NMLS # 6395
JSimms@cmcloans.com
Financing Kentucky One Home at a Time
0 votes Thank Flag Link Fri Jun 22, 2012
Often banks are weary about loaning money for a home for more than what it appraises for. There is no hurt in speaking to another lender and inquiring (especially if you have more than one preapproval). Go right to the professional and right to the source that can help you (a different lender) to ask your questions. It seems that time is of the essence in your situation. Good luck!
0 votes Thank Flag Link Fri Jun 22, 2012
Hi Demilu77,

It's possible that the appraisal has language in it that would prevent the home from qualifying for any type of financing the way it sits right now which means the house would to be "repaired" first in order to get financing on it.

See if you can get a copy of the appraisal.
0 votes Thank Flag Link Fri Jun 22, 2012
Additional Info for the above Q:

Buying a HUD home offer $55k, appraised today for $52k. Needs minor repairs like paint and new carpet that’s why apprised under value of $3k…( I intended to fix anyway…like put about $10-$15k in remodeling to make it the way I want to… will be my first home ever… and I have the $$$ for it not getting a second loan for sure!) The loan officer I was working with first quoted me 3% interest rate bc of my perfect credit score of over 770 and the fact that I will also put 20% down payment. By the way I have 3 different approval letters for conventional loan.
But today after the appraisal he is telling me that bc I need to repair before I close and I need to get a loan for repairs and if I do that … then i need an FHA loan and he bc its an FHA loan the interest rate is 3.75% And told me I will not be able to get a conventional loan… bc I have $3k of repairs… Minor repairs
I think he is pulling my leg!!! Any Ideas????
What I want don’t mind is paying the difference of $3k out of pocket and getting a conventional loan for $52k,,, Would a bank give me a conventional loan for $52k on a 770credit score and putting 20% and want to pay it off in 10 -15 years depentind on the interest rate they would offer me ...any way would they ?????

Please i need help need to know what to do ASAP inorder to buy this home

Thank you!!!!
0 votes Thank Flag Link Thu Jun 21, 2012
Get another loan officer. His trying to get you into a 203K. If your putting 20% down, and all it needs is paint, and carpet, why do you need a FHA 203K?
Is the lender telling you need this repairs before closing due to safety, or health issues?
Flag Thu Jun 21, 2012
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