Judging by your other question, FHA Reverse Mortgages are what may be of interest to you. Please see: http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/hecm/hecmabou
Quoting from the above source:
"You can also use a HECM to purchase a primary residence if you are able to use cash on hand to pay the difference between the HECM proceeds and the sales price plus closing costs for the property you are purchasing." ... I suspect your plans to downsize would mean you would not need any significant amount of cash. Just "application" fees.
Also given that you may be retired, you may qualify for other programs such as the CHF Access program: http://www.chfloan.org/programs/ACCESS/CHF_ACCESS.html
Juliana Lee, MBA LLB
Top 3 agent nationwide at Keller Williams Realty
Over 1,000 homes sold in San Mateo and Santa Clara counties.
Over 20 years experience... more
It depends on if your selling and buying locally so that your agent is familiar with where your moving to as well as where your current home is located. It is at your best interest to use one Agent who can assist you with both transactions. Are you selling with realizing some cash to the new purchase?
If not that much, you may want to consider the FHA CHF Access half percent down payment program which allows you to rent out your current home while buying another home with only half percent down payment and can also contribute towards your closing costs so that you have a low out of pocket expense? You may gain some equity and sell later with this option? It only takes a few minutes to go over a few dozen questions to know what opitons you may qualify for or have available to you? Here is a flyer and a needs list for processing a loan approval.
CHF Access half percent down flyer, pdf
Sheryl Arndt, standard needs list checked, pdf
CHF Access income limits http://tinyurl.com/8lzf8he
Are you pre-approved. Do you have down payment and closing cost saved? Do you know what fico scores you have? I can approve you for only half percent down payment and contribute to your closing costs with a minimum 580 fico score with CHF Access program. Here is what is available in San Jose 95128 zip code up to 700k. I have some around 200k or more in other zip codes. The sfr in 95128 start at $344,900 which is only $1,750 down and $2,525PITI @4% 30 yr fixed rate and can contribute towards closing costs. Check out the flyer and needs list to qualify. Half percent down can be used up to $729,750 Jumbo. I also offer credit repair at no cost to raise fico scores to qualify. Any questions, feel free to call anytime. 760-486-4225
Click the following URL to see the listings San Jose 95128 up to 700k:
Have your agent call and ask the bank when you should expert your response. If it was a multiple counter offer, price may not be the only factor - if the other one is all cash with no contingencies for example. How do you know (or who told you that) you are the highest offer? 10 days is not uncommon. Good luck.... more
Your agent and the listing agent are going to be your best allies. If the comps show one thing they will need to be able to justify your less than comp price. The bank is going to rely on the BPO/Appraisal to determine market value and hopefully it will support your offer.
The chance of them accepting is blind. No one knows until it comes back yes, no, or otherwise. Nothing in this market is determinable.
Confused by the previous answers? To help, first, ignore Mr. McCoy's answer because he is flat out wrong. Second, let's look at what "assessed value", appraised value, and sales price mean with respect to loan amount and whether you need mortgage insurance.
First, Assessed value refers to what the tax collector thinks the property is worth. For comparable properties, as in same street, same floor plan, same lot size, same amenities, same age, and the like, what the assessor is supposed to think a property is worth is what the comparable property sold for most recently. If the assessor is saying the property you are thinking of is worth more than those comparable properties, the present owner can file a tax appeal to change the assessor's mind. However, once you buy your property, the Tax assessor, assuming you buy this property through Realtors and you are not related to the seller, MUST assess the property at the price you bought it for, i.e. the Sales Price. Lender's do not base any lending decisions on the tax assessor's "assessed value" for a property.
Second, Appraised value, is the value the appraisers working for your lender say they think the home most likely will sell for on the open market. This is an educated guess on their part.
The Sales price is what you actually pay for the property.
Lenders base their decision to require mortgage insurance on whether the amount of your loan is greater than 80% of the LESSER of the Appraised Value or the Sales Price. To look at it from the lender's point of view, if you buy the home for less than appraised value, it is safer for them if they assume the appraisers are wrong so they accept your sales price as the true market value. If you buy it for more than appraised value, is is safer for the lender to assume the appraiser's are right and you bought the home above market value for reasons known only to you. So, in either case, the lower number is the one the lenders will assign as the benchmark for determining if your down payment is greater than 20% of the value of the property in their eyes, and thus whether you need mortgage insurance.
I hope this ends any confusion you may have. If you want to discuss your situation in more detail, please call me, Mitchell Pearce, at 408-639-0211 or email me at firstname.lastname@example.org... more
Personally, there are many parts of San Jose that would be appropriate for your parents, but the better questions to ask, especially for seniors, will center around access and mobility and then housing costs. A surprisingly large number of seniors are living well into their 80s and 90s, so access to public transportation and proximity to basic supplies, such as food, shopping, medication and hospital or doctor services (within walking distance), is a necessary consideration.
Also to be considered is traffic patterns in the area since many seniors do like to drive well into their 80s and fast moving traffic that never seems to let up on surface streets leading to the market or doctors, for example, can present both safety and access problems for seniors. Many of the roads in these areas are multi-laned, and will require the senior to cross multiple lanes of traffic to head toward markets or back home.
Finally, consider the house itself for your parents. Although many would like single family homes with yards fore and aft, it may be more convenient for your parents to consider patio homes where a homeowners association will maintain the exterior of the building, but will still afford your parents a small garden area. Also consider the age and condition of the property, since older homes can require both extensive and expensive repairs, which can be a burden for those on fixed incomes. The area in which your parents are focusing has a nice combination of smaller, single story homes with smaller lots that can provide a great living place for your parents.
Work with an agent who is sensitive to the needs of older citizens and who also knows the area well. Realtors who specialize in or have training to address the issues of older home owners and buyers have the "SRES" or Senior Real Estate Specialist designation. For a list of SRES certified Realtors in your area, go to www.sres.org.
Grace Morioka, SRES
Area Pro Realty
Tel (408) 426-1616... more
Personally, and this is just my opinion, if you have business in the Bay area that would be your better investment. That area has held up strong in resale value and the paper today states that home sales are up 30% from last month believing that maybe they are close to the bottom of the decline in pricing. If you were to buy now, Cupertino will carry a better resale value than Burbank by location alone. Remember, my opinion only! Good luck.... more