Home Buying in Atlanta>Question Details

Dina Speakman, Home Buyer in Decatur, GA

what to do if I really want a place like thisand I don't have the 5% down instead I do have the 3.5%?

Asked by Dina Speakman, Decatur, GA Mon Aug 19, 2013

I am a FHA pre-qualified home buyer with a question: My question is ... i just went on a bidding war on a potential short sale property with 6 people and I finally placed my bid with my realtor, to find out that the place that I was bidding on was a conventional loan property what should I do if I don't have the complete 5% to put down? Please give some options. My Realtor fail to tell me that the complex was a conventional loan property and I gave him my FHA pre qualification letter. I would really hate to loose this place is there another way?

Help the community by answering this question:


do you have a family member that can give you a gift of 2%? you can use your 3% down payment and then the 2% gift for a total of 5% down payment - call me and we can discuss this option. My number is 678.644.9912.
1 vote Thank Flag Link Mon Aug 19, 2013
Well you have a couple options. I have a conventional loan product available that requires on 3% down payment. Another thing you can do is, if you were paying your own closing costs, I can get you a 1.5% lender credit so you now have the additional down payment money you need to do a conventional loan.

If you're interested, feel free to email or call me anytime with any questions. ID be happy to discuss the details with you. Good luck!

If my response was helpful, consider clicking BEST ANSWER!

Javier Meneses
Senior Loan Officer
NMLS #23130
310 Crossways Park Drive
Woodbury, NY 11797
(516) 606-9648 Cell
(516) 740-4478 Office
(516) 918-5383 Fax
1 vote Thank Flag Link Mon Aug 19, 2013
Hi Dina,
The lender would first have to get the project FHA approved in order for you to be able to obtain and FHA mortage in the complex. Only a lender with DELRAP authority is authoirized by HUD to perform this approval. Prospect Mortgage has been issuing DELRAP condo approvals since HUD began the program a few years ago.

Purchasing a home via short sale is not at all an easy process. A lot will depend on how experienced the Listing Agent is and how prepared the seller is. You can expect for most short sales to take at least 3-6 months from when the seller first contacts their mortgage lender(s). If they have a 1st and 2nd mortgage, they must get approval from both companies. This of course, will lengthen the process.

Short sales have so many ways in which they can go wrong. Many short sales simply never close after several weeks or months of work. This is a fact that every buyer needs to completely understand. If you are purchasing a property and must close by a certain time, then a short sale is probably not your best option.

A lot of the reasons for the fallout depend on the seller. To qualify for a short sale, the seller must submit all of their financial documentation AND prove that that currently have a financial hardship. Many sellers don’t submit the proper paperwork resulting in delays. Some sellers cannot demonstrate the required financial hardship that is required for a short sale approval. If a seller files Bankruptcy during the process, that will cause a delay. There could be unpaid property taxes of HOA dues to deal with. There are countless other things that can and often will go wrong. Some can be overcome, some cannot. No Listing Agent, no matter how good they are, can control every action of a seller.

It is critical to keep in mind that the seller’s lender(s) is taking a loss on every short sale. They must to their due diligence to ensure that the short sale is justified and that it minimizes risk to the lender. There is also a lot of fraud with short sales so that must be invested as well. The buyer are seller re not able to have prior relationship with each other.

A short sale is VERY time consuming for all parties involved. A Buyer’s Agent has absolutely no control in the short sale process. They are solely dependent on the Listing Agent and the Seller.

If you are looking to purchase a property, working with a knowledgeable and seasoned loan officer is critical in today's market. Getting Pre-Qualified is the only way for you to find out your mortgage options. To get Pre-Qualified for your purchase, you can submit your request online at http://www.rodneymason.com.

Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia with over a decade of mortgage lending experience.

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203(k) Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle® Renovation | VA | USDA | GA Dream | Jumbo Financing.
1 vote Thank Flag Link Mon Aug 19, 2013
I would contact your lender and figure out what he would say.
1 vote Thank Flag Link Mon Aug 19, 2013
First step would be to contact your lender and see if you will qualify with a conventional loan. If not, there is nothing you can do. But your lender should be your first call.

Good luck.
1 vote Thank Flag Link Mon Aug 19, 2013

We offer a conventional 3% loan program. Please call me ASAP for more details.


George Cohen
Mortgage Banker
Brand Mortgage Group
NMLS 1078450
0 votes Thank Flag Link Wed Aug 21, 2013
Hey Brian,
We're all trying to give Dina options, but without knowing all the facts.
0 votes Thank Flag Link Mon Aug 19, 2013
Sally - that's a lender paid MI situation which isn't always best for your client - their monthly PMI will come off at a certain loan to value versus the Lender Paid (built into higher rate) being there for life of loan. So, for them to tell you there isn't PMI is a bit misleading - it's there, just lender paid (which means customer pays much higher rate).
0 votes Thank Flag Link Mon Aug 19, 2013
Call your local Synovus Mortgage Co.
The lender who I work with in Warner Robins, emailed me this a few weeks ago with the below:

Subject: 3% Down With NO PMI!!

Good afternoon!
Just a quick note to let you know that I now offer 97% financing with NO PMI. This is an awesome alternative for your buyer who wants to avoid the mortgage insurance on an FHA loan!
As an example, for a borrower with a 720 credit score purchasing a $125,000 home, here’s how the 97% loan compares with FHA:

FHA - $4375 down payment
$585.96 Principal & Interest @ 4%
$135.70 Mortgage Insurance
$125.00 Taxes (est.)
$60.00 Homeowners Insurance (est.)
$906.66 TOTAL

97% with NO MI - $3750 down payment
$677.75 Principal & Interest @ 5.25%
$125.00 Taxes (est.)
$60.00 Homeowners Insurance (est.)
$862.75 TOTAL

Your buyer saves $43.91/month AND puts down $625 less!
**Remember, FHA mortgage insurance is now effective for the LIFETIME of the loan.

Hope this helps.

Best Regards,
Sally Wildasinn, Realtor
Fickling & Co, Warner Robins, GA
0 votes Thank Flag Link Mon Aug 19, 2013
HI Dina, is the property a condo or attached townhome? Since it is a shortsale, and the Realtor is saying you need a conventional loan, I would assume there might be some condition issues that might not be acceptable to FHA. If there are none, it could be approved as a spot approval for FHA, your lender should be able guide you. There are some specific guidelines regarding owner-occupied ownership ratio, and the financial health of the Homeowner's association are some items that have to be reviewed.

Just as a FYI, if the property is a single family detached home and your credit scores are 720 or better you can get conventional financing with 3% down.

Please feel free to reach out to me if I can be of further service.
Nick Nicholas
NLMS 658973
SunTrust Mortgage
Cell 678-614-4327
email nick.nicholas@suntrust.com
0 votes Thank Flag Link Mon Aug 19, 2013
If the condo complex is not FHA approved and you do not have 5% to do a conventional loan, then you are not going to be selected by the seller. You do not have the down payment needed and the complex is not FHA approved. You will not find very many lenders willing to take the time and money to get a condo complex approved, all to be dealing w/ a short sale. Find a condo in an FHA approved complex. Your buyers agent should be showing you only FHA approved condo's. Best of luck!

Kathleen Kane
ReMax Around Atlanta
0 votes Thank Flag Link Mon Aug 19, 2013
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