Home Buying in 92374>Question Details

Eileen, Home Buyer in 90805

what is the average interest rate on a flip property?

Asked by Eileen, 90805 Tue Mar 5, 2013

1st time home buyer... placed an offer down on a home... seller contacted my reltor, and said they received several offers. gave us a counter offer $20k higher tan what we offered. seller said we'd have to use their lender in order for seller to pay closing costs. NO TERMITE will be done. prperty is "AS IS" I called sellers lender, she said that since property is a flip, the interest rates are much higher. she gave me an estimant of 3.75%. with a ficco score of 638. does that sound right? i dont want to get taken for. also is it a good choice to buy a flip? since its AS IS. i dont want to buy a lemon.

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Some lenders may have an adjustment for a Flip but it's not possible to say if 3.75% is too high or not without knowing all the details. Are you getting a substantial lender credit at 3.75%? If not, you may want to look around. I would be concerned that they don't want you using another lender because of the additional scrutiny that will be done on a flip property and it's valuation. Don't feel pressured into using their lender, if it doesn't smell right, it probably isn't.
Web Reference: http://TripointMortgage.Net
0 votes Thank Flag Link Tue Mar 5, 2013
As a first time buyer, you will be well served to have a termite inspection a s well as a property inspection.

If the terms and conditions being set forth by the seller sound too one sided, WALK away.

A real estate transaction should NOT be so one sided. Buyer and seller need to feel they have both gained something valuable from the transaction. If you feel the seller is holding all the cards, and calling all the shots, this may not be the right deal for you.

Best of luck to you
Kawain Payne, Realtor
0 votes Thank Flag Link Mon Apr 1, 2013
As a first time buyer, you will be well served to have a termite inspection a s well as a property inspection.

If the terms and conditions being set forth by the seller sound too one sided, WALK away.

A real estate transaction should NOT be so one sided. Buyer and seller need to feel they have both gained something valuable from the transaction. If you feel the seller is holding all the cards, and calling all the shots, this may not be the right deal for you.

Best of luck to you
Kawain Payne, Realtor
0 votes Thank Flag Link Mon Apr 1, 2013
let me try to answer all your question:
1.) Interest rate is higher on a Flip, not because it is a Flip, but because it not an owner/occupied house: Any investment property will have a higher rate, not just flips.
2.) if you are a 1st time buyer, why are you not buying a house for yourself first?
3.) you do not have to use their lender, they are just offering you an incentive. This might be a good deal, or. they be inflating something to make up for the closing costs. You need to get a GFE to compare with other lenders to see.
4.) You can, and should do the termite inspections, it will tell you what you are walking into. It should also give you a way out of the Contract if the damage/infestation is excessive, (assuming that you have a Contingency for that.)
5.) 3.75% is not too bad for an investment property.
6.) just because it is AS-IS doesn't mean you are stuck with it, (assuming that you have CONTINGENCIES to protect you.
7.) no such thing as a lemon; just some investments can be a money-pit if you are not protected.
0 votes Thank Flag Link Thu Mar 7, 2013
Next !




Jory Blake
951.742.3751
Web Reference: http://www.JoryBlake.com
0 votes Thank Flag Link Thu Mar 7, 2013
Agents can request you use their lender, but it is not required. If you want to get an accepted offer you may choose to use therr lender. AS-IS is used but California does not allow for as-is technically. They just may not agree to do any repairs if needed or required. You still have a right to cancel. Flip properties do not really change your interest rate unless you are buying as an investment. They may require a second appraisal if property has been sold in the last 90 days. If you need assistance please contact us. We have lenders and great agents to help you.
0 votes Thank Flag Link Tue Mar 5, 2013
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