Home Buying in 10007>Question Details

Elokin, Home Buyer in New York, NY

hi- I am looking to buy an apt with my boyfriend. we both in our mid to late 30's and have excellent credit, first time buyers. One amazing

Asked by Elokin, New York, NY Thu Apr 1, 2010

thing on our side is that my boyfriend qualified for a VA loan. So even though we are being quoted rates of 4.2%-ish for mortgages we will still never beat his 3% VA fixed 30 year loan. OUr dilemma, besides not being married, is this- we are looking at apt's in the 800K value but his VA only qualified him for 650K. we have most of the cash to make up the difference but we dont want to empty our coffers esp if we dont have to. Can I take out a separate loan to make up difference?

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9
Robin Silverberg’s answer
Is it possible that your boyfriend is taking out his second VA loan, and is confusing the funding fee (3.3%) with the interest rate?
The 4.2%-ish rate is either an ARM or a loan with a lot of points. You have mentioned apartments, but have not said whether you are talking co-op or condo. If a co-op, you can't do VA or FHA anyway. If you are looking at condos, they have to be FHA approved.
1 vote Thank Flag Link Thu Apr 1, 2010
You're being quoted interest rates on "Jumbo" loans and this is the same reason the VA loan doesn't really work well, as the amount they'll lend you is less than what you're ideally looking for.

I would not waste time with any of the big banks. (Wells Fargo, BoA, PSC, Chase etc, ) their the least competitive and hardest to deal with any more as they all impose additional requirements not mandated by the secondary market.

I would suggest if you have the opportunity to speak with a Credit Union. If this won't work I would suggest trying a lender such as New American Mortgage or a Mortgage Broker as some others have suggested.

At New American you could contact Justin Burris, 919-535-4760. Don't worry that he's based in Raleigh NC, they lend throughout the country. For a top notch mortgage broker try Todd Barbour - 919-459-1311.

You want to explore your options carefully and both these guys are extremely experienced, super competitive and will take the time to explain to you the various options available to you. As Robin Silverberg below already mentioned depending on the specific type of property you're looking to purchase (Co-op, Condo, etc) certain loans may not be available to you.

I wish you all the best.
0 votes Thank Flag Link Mon Jan 28, 2013
It is crucial that you shop around for a mortgage broker that can explore all your financing options. Mortgage brokers have access to many banks, private lenders and different programs. Choose one that can answer all your questions on the first meeting.

Best of Luck,

Maria Cipollone

http://www.Flahomespecialist.com
0 votes Thank Flag Link Mon Jan 28, 2013
You have great advice.

My recommendation is that you do not entangle yourself further in this arrangement. You should begin with the end in mind. What happens if you break up? Have that figured out IN WRITING before you commit yourself legally to being on title, etc.

I cannot tell you how many posts we get "my boy friend and I just broke up, we bought a home, and....."
0 votes Thank Flag Link Thu Apr 1, 2010
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
Contact
You have received the answers to most of your questions excluding the most important one. In today's market there are buying opportunities depending on where you choose to live where an astute broker can negotiate a sales price 10 to 30 % of the asking price. For example that $800,000 apartment you maybe able to acquire for $640,000 which would solve all your financial problems.

I recently negotiated a contract for 22% less than the asking price. If you are interested in that kind diligent advice feel free to contact me 917 518 9746
0 votes Thank Flag Link Thu Apr 1, 2010
To answer Tammy's question: You can be on the Application, Note and Mortgage, UCC's for Coop Shares, if you're not married. That means you are held responsible for the payments even if you decide to split up after you close and the documents are recorded.
James is correct, you should be dealing with a respected Real Estate Agent and let me add that your attorney must be experienced in closing loans in NYC.
0 votes Thank Flag Link Thu Apr 1, 2010
No second loans/liens are allowed with VA Mortgage Loans.
As an aside, the rates you are being quoted are for an adjustable 30 yr loan, not fixed.
Fixed Rates are approximately 5% depending upon your credit scores, unless you are being quoted/paying more points than the VA allows. Please make sure that you are dealing with a licensed loan officer with significant VA underwriting experience.
Rates will be increasing now that Federal Reserve has ceased purchasing Mortgage Backed Securities (MBS) on the open market.
You must be in contract by April 30 and close by June 30, 2010 (unless your boyfriend is going overseas) to get the Federal Tax Credit benefit.
0 votes Thank Flag Link Thu Apr 1, 2010
Morning Elokin,
the best thing to do is ask the bank if this can be done and you should always work with a Broker because when you go to a building they work for the owner NOT you and when you have a broker on your side we work for you NOT the owner so give me a call and we can help you with all your need .

34 east 20th street
New York,ny,10003
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(646)943.1610

Rita Wolf
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New York & New Jersey

James Lehrieder
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Delroy Bodley
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(646)943.1610

http://www.wolfgroup.yolasite.com

http://www.nyls.net
0 votes Thank Flag Link Thu Apr 1, 2010
Will the VA allow you to help take responsibility for the first mortgage even though you are not married? Will your name be included on that VA loan?
0 votes Thank Flag Link Thu Apr 1, 2010
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