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Financing in Montana : Real Estate Advice

  • All31
  • Local Info3
  • Home Buying13
  • Home Selling6
  • Market Conditions3

Activity 21
Mon Nov 7, 2016
Tony Grech answered:
The guy below is incorrect.
A gift is exactly that, a gift. He must sign a letter stating no repayment is expected.

A secured loan (or "collateralized loan") is a permissible source of funds for a gift. Dad would need to provide a copy of the note from the loan against his truck, plus a copy of the proceeds check and proof he deposited it into his account before gifting it to you.

It's a heck of a paper trail, but it is permissible under FHA guidelines. Here are the pertinent guidelines:

If the gift funds are being borrowed by the donor and documentation from the bank or other savings account is not available, the Mortgagee must have the donor provide written evidence that the funds were borrowed from an acceptable source, not from a party to the transaction.
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Tue Jul 26, 2016
Joe Borelli answered:
Just because a lender is approved by FHA does not mean they will offer the standard 203K or the Streamline K. You need to work with FHA lenders in Montana who have prior experience in funding renovation loans under the 203(K) guidelines.
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Tue Jul 26, 2016
Joe Borelli answered:
Just because a lender is approved by FHA does not mean they will offer the standard 203K or the Streamline K. You need to work with FHA lenders in Montana who have prior experience in funding renovation loans under the 203(K) guidelines.
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Sat Apr 30, 2016
Walt Long asked:
It's a FSBO situation so we never discussed rolling these costs into the loan.
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Tue Apr 14, 2015
Cplsanfordlopp asked:
Our combined income is $25,000-$30,000 yearly. We have a down payment of $5000.
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Sun Apr 13, 2014
Cindy Humphrey answered:
Hi Renee, The transaction you are preparing for would have a lot of possible snags both on the lending side and purchasing decisions to be made. Shopping the loan will serve you best when determining your interest rate and if there will be any points added to the loan. Your credit score plays a large role here. Personal visits to lenders are better than a phone call. I have a list of documents you should bring with you on the first visit to the lender that I'm happy to send over to you upon request. It's much easier to have your needed info organized from day one than to go back and forth gathering items that you must have to qualify. Are you working with a Realtor currently? Specifically a Buyer Agent? It is in your best interest to work with an experienced agent. It will save you time and reduce the surprises that can crop up along the way. Best regards, Cindy ... more
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Fri Mar 28, 2014
Aaron Pagniano answered:
Hey Kim,
There are many lenders and conventional banks which finance modular homes. Our market has lenders and mortgage brokers who are easily able to secure financing for modular homes. Some buyers find terms with smaller community banks, as well. Many homes in the Missoula area are modular or manufactured homes. If you would like more information let me know.

Thanks Kim,
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Mon Oct 14, 2013
rivergirl821958 answered:
We have 2.5 acre lot on 64th ST we want to sell. It is flat, square and has a ton of water for a well. All Utilities are right on the property including natural gas. What can we expect it to be worth in this market. ... more
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Tue Jun 18, 2013 asked:
So I have submitted what I think is all the paperwork that my loan officer needs-- 3 tax returns, 2 W2's, a paystub, and 2 months of bank statements. He has gotten back to me and let…
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Mon Jan 21, 2013
Andy Onushco answered:
There are a number of ways to structure this to make it work. It is really a banking question, related to mortgage qualification. Find a lender who is well versed in VA loans and he/she will likely be able to help you get qualified. In the meantime, there are a number of things that can be done to repair credit.
Good Luck! Andy Onushco, owner of Andy O Realty, Keller Williams Capital Realty, Helena MT.
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Thu Jun 23, 2011
Don Tepper answered:
That's good.

As Sally explained, that means they're reviewing your entire loan application. Typically that's done by an "underwriter." He or she goes through the application and makes sure everything is OK. Usually the underwriter will come back with a few questions. Don't panic. Just comply with what they want. It might be a more recent copy of your pay stub, for instance. Or a more recent bank statement. Things like that.

After everything is assembled and updated, the underwriter makes a decision about whether the bank will underwrite--or fund--your loan.

Good luck.
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Wed Jun 22, 2011
Shane Milne answered:
When your rate is about to expire, and your loan has not funded yet, you have options:

1. Let it expire, and the day afterwards you can lock in "worst case pricing" - meaning the higher rate between the rates when you locked in initially and the current interest rate.
2. Extend it, and:
a) if the rates are better than when you locked in, the extension with most lenders will be free
b) if the rates are worse than when you locked in, the extension usually has a cost (each lenders cost is different, check with yours, but typically it's 15 day extension for .125 in fee, 30 day extension for .25 in fee, but it can certainly vary)
3. Let it expire, and wait a full 30 days, at which point you can then lock in lower interest rates than when you initially locked, but if you re-lock within the first 30 days after your lock expiration it reverts back to the scenario in #1

So if you do not extend it, prepare for options #1 or #3.

Each lender's lock & extension policy is different, so be sure to ask yours so you aren't devastated by making the wrong move.

Now if you don't even want to buy this house anymore, like the real estate agents here have mentioned, consult your own real estate agent and read your contract, you could potentially lose your earnest money deposit and/or be liable for certain damages.
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Wed Feb 16, 2011
Gerald Maxwell answered:
I am a Real Estate Broker & not a lender, but what your lender has told you is consistent with lenders I deal with. Your credit score should be just high enough to qualify for a VA loan, if you have your VA eligibility (if not, you can go to the VA website & apply). However, due to your self-employment, you will need to prove a minimum 2 year track record of making a profit (actually earning a living). Some self-employed people do fine, but the way they structure their tax reporting, it looks like they make no money. They do not get approved for loans. So, you will need to take a look at your taxes that you file and make sure you show a profit each year. Consult with your lender on just how much profit you need to show in order to qualify for the loan amount you are seeking.

Good luck with the planning. And remember to save, save, save. Even if you can get 100% financing...having money is always good!

Gerald Maxwell
Associate Broker, Keller Williams Realty
Huntsville, Alabama
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Tue Dec 28, 2010
Red_as_copper answered:
After speaking with the lender again today, they are sticking by their guns and telling me it is an FHA requirement. He even went so far as to tell me the FHA underwriter didn't understand the guidelines, and that his underwriters are correct. He has stated he is "busy looking for a loop hole" and even though my locked-in interest rate of 4.25% expired today he is doing me a "big favor" by extending it another 15 days at a cost to the lender of $675. What a guy huh?!? It would never have expired if not due to his "ineptitude" as Mr. McDowell said in his post. I agree that there is some underlying issue with the appraised value of the house. So basically he was not expecting me to take the initiative to contact FHA and call him out on this nonsensical reasoning. Rudy hit the nail right on the head. My agent is about to blow her top, and the seller's agent has gone postal on this lender. Her client is nearly in a foreclosure situation because this has gone on so long. Thanks to everyone for your feedback, help, and suggestions. I will keep you posted. I hope none of you ever has to deal with something like this, ever. ... more
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Mon Nov 15, 2010
Patricia C. Laster asked:
Mon Sep 27, 2010
Celia Butler answered:
Hi there ...
so sorry for your situation. Wells Fargo, in my opinion, is one of the worse in closing times. I as a mortgage broker, and lender in all 50 states, have the ability to rush a file BUT 203k loans do have some additional paperwork. Have you researched and gotten a registered contractor to work with? If all of your team, i.e., realtors, contractors, etc would move expeditiously it can be saved. Oct 22nd is your close date so that is less then a month. I think you have to make the decision if you want to persue it and rush like crazy to get all done that needs to be done. Get appraisal done asap, general contractor in to give a good estimate / cost breakdown and zoom zoom with anything else you may need documentation wise.
Celia Butler
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Wed Sep 15, 2010
Red_as_copper answered:
Some of you mention the original "purchase contract" - are you referring to the buy/sell agreement? This is the third home I've offered on and in all of the transactions (we're in Montana), we put an inspection clause in the contract, but repairs are not mentioned in the contract. I was told by my agent that repairs would be discussed post-inspection on the inspection notice. Today when I went to fill out the inspection notice, my agent basically told me the seller (the executor of the estate) priced the house to sell and is probably not going to help us out with repairs. Would've been nice to know this before we ever placed an offer because the house needs a ton of work - more than we even anticipated. When we made our initial offer we were told there was an insurance claim on the roof (made by the now-deceased owner), that an $11000 payment for a roof had been issued, and so we thought that meant that money would go towards a roof - surely that's what the insurance company thinks too. I am looking into the 203(k) loan, so thanks for the info on that; that might really help us. The land the house is on (house aside) is worth more than what we're paying, so we don't want to lose this deal. Thanks for the help. Sounds like the agents (yes, I've had several in the course of my home search) might not be up to snuff (they're all REALTORS) because none of them have done any of the things you've mentioned. ... more
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Thu Feb 11, 2010
William Polack answered:
I have to agree with Mr. Mishra. Your IRA is not performing well now because it's buying stock at a lower price. When the market goes up, your investment will go up. Then it will go down again (you want it to go down). Again, the investment will pick up stock low and sell high and on and on. I would NEVER take money out of an IRA to put into a house that could burn down to the ground the next day and you lose all equity and your retirement. You will get hit with penalties and early withdraw fees and have to claim the amount as income (if it's not a Roth IRA) for next year. Consider the rule of 72: At a rate of 6%, your money will double every 12 years (72 divided by 6 is 12). So, $10,000 now is $20,000 in 12 yrs; $40,000 in 24 yrs; $80K in 36 yrs...and so on. I'd say to hold off on the small business until you can really afford it. If you're telling me that you have to lower your housing payments to open a biz, you need to get a biz partner or find a biz that's going to make more money in the forefront. Good Luck ... more
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Sat Mar 14, 2009
Beth James answered:
I agree with Bill, sometimes it is not as bad as you think! In our office we can run a credit report and view it right there with our clients. We can see the score and the problems and evaluate it together. Sometimes we send the report off to a lender to see if it will go through the underwriting system.

In many cases these days, we assist a buyer with not so perfect credit through a credit restoration program that our company offers. As the agent involved, I work with the buyer through this process (I do not receive payment for this service). Once the credit is restored, which can take from 6 months to a year, the buyer is then ready to go to a lender to be pre-qualified and move toward purchasing a home. I have six very satisfied potential buyers working through the program right now. Why are they satisfied? Because someone was willing to work with them to help them, and because they know they will be buying a home very soon.

This is not debt consolidation it is credit restoration...there is a difference so be clear in what you are asking for. If a real estate agency near you does not offer this, some lending institutions will.

First things first, find out just how "bad" your credit is...and go from there, be optimistic and work hard to fix will come out on the other end a home buyer!
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