Creative home financing...

BamaTJ · May 12, 2008

Make sure you get approved and they run credit and get all they need. They have cracked WAY down on lenders, so a lot will tell you are approved to get your business without doing their due dillagence. Tell them to go ahead and get everything they need to be 100% official, paychecks, statements, etc. The last thing you want is to put a offer on a house, them accept and then you find out your financing is not firm.

It is a buyer's market but the lenders are making it hard as **** to actually buy!

P · May 12, 2008

I hear ya, thats another beautiful thing of having VA benefits to fall back on right now. Just makes me more appealing to lenders at this time in the game. Even if the VA puts a fee on me in the big picture its worth it

( VA has some gay processing fee's and prepaids requirements that are a bit outta pocket up front on my end.... )

Bones · May 12, 2008

No PMI? That's a HUGE savings as well. Hoping mine will be gone come refi time after being in my place 2 years. Only be a year in August.

P · May 13, 2008

Thats what dood said... I told him i had PMI last time I bought a house and used VA and he was dumbfounded by it...

I hope to hell I can get in with no PMI... that **** is LAME !!! I fuggin hate insurance I spend more got damn money on insurance a month than anything... all of it is pretty much forced on you by "the man " too which is what pisses me off most about it.

bigsilly · May 13, 2008

P said:
I fuggin hate insurance I spend more got damn money on insurance a month than anything... all of it is pretty much forced on you by "the man " too which is what pisses me off most about it.

Just pay cash for your house and self insure it :flipoff1:

Keep in mind when "the man" is making you insure homes and cars it is for the lender's protection as much as it is yours. They need to protect their investment. I do not sell property insurance, just health insurance. I can certainly tell you I have seen some sad stories of people that did not have health insurance and I have seen plenty of stories where people have health insurance and are damn lucky they did have it. It can mean the difference between bankruptcy and keeping everything you own.

InDaShop · May 13, 2008

You know how many people I have known, who almost as soon as their insurance lapses on their house or shop that thing burns, and they loose it all? It is seriously a handful.

Insurance is robbery, but damn when you lose everything its nice have right?

P · May 13, 2008

Yea but I still dont like payin for it laughing1

health insurance... no wonder you piss excellence Joel your with "them" your "the man"

bigsilly · May 13, 2008

P said:
Yea but I still dont like payin for it laughing1

health insurance... no wonder you piss excellence Joel your with "them" your "the man"

I pay a ton in insurance as well, I feel you on that as well.

And no I am not "the man" I have never sold any one insurance that did not want to buy it.

BamaTJ · May 13, 2008

P said:
Thats what dood said... I told him i had PMI last time I bought a house and used VA and he was dumbfounded by it...

I hope to hell I can get in with no PMI... that **** is LAME !!! I fuggin hate insurance I spend more got damn money on insurance a month than anything... all of it is pretty much forced on you by "the man " too which is what pisses me off most about it.

From what you said you wanted, no money down and no PMI, he will put you in 100% financing which is an 80/20. 80% of the principal is in the first loan at a good rate (5-6%), 20% of the principal in a second "bank" loan with a higher rate (like 7-7.5%). It will be better than PMI because the interest on both loans is tax deductable, whereas PMI is not because it is insurance to help protect investors if you default on your loan.

Bones · May 13, 2008

BamaTJ said:
From what you said you wanted, no money down and no PMI, he will put you in 100% financing which is an 80/20. 80% of the principal is in the first loan at a good rate (5-6%), 20% of the principal in a second "bank" loan with a higher rate (like 7-7.5%). It will be better than PMI because the interest on both loans is tax deductable, whereas PMI is not because it is insurance to help protect investors if you default on your loan.

You got it. I forgot about that scenario. They tried that when I was married on the big house P.

I am paying it now, but when I refi next year I hope to knock it down to a 20, maybe 15 year loan :dunno:

blacksheep10 · May 13, 2008

I don't want to get into this. **** ****'s expensive.

P · May 13, 2008

Once you accept the fact that EVERYTHING in life cost's money its all good laughing1

I hope to put the formal offer on the table tommorow. Talked to the mortgage guy and he's got all he needs to get the monies in place hope to hear from him later this afternoon with the big ol thumbs up go do your thing.

blacksheep10 · May 13, 2008

agreed, I'm just worried about whos car get sold to pay for the mortgage every month. I can't swing $1200-$1400 each month. a grand is about my limit with the other 5k we spend each month.

P · May 14, 2008

Aight here's were we stand right now, got the pre approval knocked out, hope to send the offer over today and find out what we can get into it for.

Here's the " unit"

P · May 14, 2008

You'll note the trees have no leaves in the background and the front yard isnt green. Its all lush now and this is a NEW home that isnt 100% finished ( but a couple days away from it )

Im hoping the fact it hasnt sold quick and with the market were its at is gonna get us in at a low ball offer. :afro:

bigsilly · May 14, 2008

Nice looking house Paul. Where is it located?

P · May 14, 2008

Not far at all from were Im at currently. We wanna keep close for HB's school and all that jazz.

InDaShop · May 14, 2008

Yard will look good with a rock pile and fitty track. How far back does the lot go? Is there a Home Owners association? Is there anything that says you cant build a shop in the back, in a couple years?

Bones · May 14, 2008

Good luck! That's a nice place! HOA?

Deep South · May 14, 2008

P said:
You'll note the trees have no leaves in the background and the front yard isnt green. Its all lush now and this is a NEW home that isnt 100% finished ( but a couple days away from it )

Im hoping the fact it hasnt sold quick and with the market were its at is gonna get us in at a low ball offer. :afro:

The builders are taking a BEATING on interest payments while these things sit on the market.

Best of luck, I expect you will be hosting the New Years Party this year skully