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Zero VGS posted:Okay, so I might still be able to close on this house now if I can get the seller to meet me halfway and take around 40k off the 80k it was underappraised at. Wait until you see the full report on monday to make any decisions. If they seriously didn't include parking in the report that sounds like a material defect to me.
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May 3, 2020 15:29
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Yeah there’s no way that’s allowed under whatever mortgage you’re getting
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May 3, 2020 15:47
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Summit posted:Yeah there’s no way that’s allowed under whatever mortgage you’re getting Or any mortgage for that matter. At a minimum it would constitute taking on another loan obligation during closing which immediately tanks the deal. If that wasn't disclosed in some way as part of this transaction it's simple mortgage fraud. Depending on how property taxes and recording fees are calculated (if it's based on sale price) it's also tax fraud.
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May 3, 2020 15:51
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Anonymous Zebra posted:The way Switzerland (and I assume Germany and many other Euro countries) works when it comes to renting/home ownership is so completely different than in the US that it's very hard to make easy comparisons. For example, in Switzerland, most home "owners" have adjustable rate forever mortgages that never end. They then can turn the interest they're paying into a tax deduction, and the shifts in the national mortgage rate % is used as a baseline for renting prices. So they have a functional form of rent control?
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May 3, 2020 17:26
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Does anyone have advice on finding trustworthy reviews on national-scale building companies? There are a bunch of new developments coming up in a town within my commute limit that fit the budget, but it appears that home builder reviews are one of those things people only bother doing when the house sucks, at least on sites I’ve checked. Most of the new devs are from Meritage or KB Home. I have no intention of using their financing, but I’m not sure how to check for other sleaziness.
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May 3, 2020 18:44
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Motronic posted:Or any mortgage for that matter. At a minimum it would constitute taking on another loan obligation during closing which immediately tanks the deal. If that wasn't disclosed in some way as part of this transaction it's simple mortgage fraud. Depending on how property taxes and recording fees are calculated (if it's based on sale price) it's also tax fraud. Hah well thanks, guess I'll wait and see what my options are. I did buy one fraudless house with this loan officer already so I found it amusing that he's floating me these ideas. On the other hand it's kinda bullshit that I need to consider this stuff in the first place all because the Patriot Act assumes anyone who only keeps cash is a terrorist sleeper cell.
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May 3, 2020 20:44
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Maybe if you can’t afford to buy yet another rental property you should just not do it vs committing fraud? Just an idea... Not to be THAT GUY but this is the house buying thread and there’s a reason all the rental property threads keep getting banished to the gas chamber.
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May 3, 2020 22:33
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Zero VGS posted:Hah well thanks, guess I'll wait and see what my options are. I did buy one fraudless house with this loan officer already so I found it amusing that he's floating me these ideas. On the other hand it's kinda bullshit that I need to consider this stuff in the first place all because the Patriot Act assumes anyone who only keeps cash is a terrorist sleeper cell. How is it that you don't understand that the only thing this guy cares about is closing a loan because that's how he gets paid? If he's careful enough all of these "floated ideas" end up as your liability and problem.
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May 3, 2020 23:00
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Zero VGS posted:Hah well thanks, guess I'll wait and see what my options are. I did buy one fraudless house with this loan officer already so I found it amusing that he's floating me these ideas. On the other hand it's kinda bullshit that I need to consider this stuff in the first place all because the Patriot Act assumes anyone who only keeps cash is a terrorist sleeper cell. It has nothing to with Patriot act. And it being cash is only an additional step. The underwriter will want to see evidence that the gift is indeed a gift, and in this amount they will want some evidence that the person can indeed afford a 40k gift. And once a transfer of that amount is made, the irs might want to see evidence that it is not ill gotten. Whether it's coming in cash, wire or magic the gathering cards doesn't matter. They don't need to see where every dollar comes from. They'd need to see that it is compatible with their taxes. Being cash is only a problem of it doesn't match what they claim in their taxes. They declared making 10k a year for the last 5 it'd be a problem. They declared 200k, they wouldn't care if it was buried in their back yard. Which brings us to another potential federal crime. Gifts over 15k must be declared joepinetree fucked around with this message at 06:44 on May 4, 2020 |
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May 3, 2020 23:30
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You don’t need to worry about taxes on gifts until you hit an accumulated Very High number (like $15M). Most people won’t ever gift $15M in their lifetimes, so it’s not really a concern. You must disclose to the IRS that you made a gift if it’s value is above ~$15k per person per year. You still do not need to pay taxes, this is disclosure only.
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May 3, 2020 23:36
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joepinetree posted:Gifts over 15k must be declared and pay taxes. Yes for the giver, and generally no until we're talking about very large numbers. And never for the recipient. Please don't give advice if you don't know how this works.
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May 3, 2020 23:39
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ScooterMcTiny posted:Maybe if you can’t afford to buy yet another rental property you should just not do it vs committing fraud? Just an idea... Not to be THAT GUY but this is the house buying thread and there’s a reason all the rental property threads keep getting banished to the gas chamber. I'm going to be living there homie, like for real. Not my fault it's profitable the second I get the keys. Not sure what me renting the other units has to do with me having been able to afford it until it failed appraisal, and asking what solutions would and wouldn't be kosher to make up the difference. Like what's your endgame here, ban discussion of any housing purchases if they incidentally involve 2 units or more? Sheesh. Motronic posted:How is it that you don't understand that the only thing this guy cares about is closing a loan because that's how he gets paid? If he's careful enough all of these "floated ideas" end up as your liability and problem. Oh I absolutely appreciate that concept, I just find it interesting that there's lines he won't cross and recommends against but other stuff where he's like "eh between you me and the fencepost it's probably close enough". But you make a great point, that distinction is likely poo poo that fucks him vs. poo poo that fucks me. Zero VGS fucked around with this message at 00:40 on May 4, 2020 |
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May 4, 2020 00:20
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Sundae posted:Does anyone have advice on finding trustworthy reviews on national-scale building companies? There are a bunch of new developments coming up in a town within my commute limit that fit the budget, but it appears that home builder reviews are one of those things people only bother doing when the house sucks, at least on sites I’ve checked. I have a Meritage home, though in Central Florida. Our process was relatively straightforward, and we haven't had any serious issues in the year we've lived here. Some nail pops, but that's to be expected. It's a production home, so things aren't perfect: some of the corners aren't perfectly square, the placement of some lights are a bit out of line, poo poo like that. In reality, it's all up to the subs that your development gets. Here in Central Florida, there is soooo much construction going on, there's a lot of competition for the better subs, so you need to figure out where on the pecking order your builder is in the area.
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May 4, 2020 00:38
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Zero VGS posted:I'm going to be living there homie, like for real. Not my fault it's profitable the second I get the keys. Not sure what me renting the other units has to do with me having been able to afford it until it failed appraisal, and asking what solutions would and wouldn't be kosher to make up the difference. You're bragging about this great deal you're about to close, while whining about the regulatory tape that's holding you back. All you see is bullshit red tape, while people here are pointing out serious red flags. This would be a reason enough to call you out, but you're aspiring to build your fife on three other households' rent money. If you get in hot water, they could feel that heat. People aren't jealous or just being mean, they're worried they're watching a slow moving train wreck and are trying to prevent it.
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May 4, 2020 01:06
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Zero VGS posted:that distinction is likely poo poo that fucks him vs. poo poo that fucks me. Glad you're finally figuring this out. What does your real estate attorney have to say about this? (yes, it's obvious you don't have one)
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May 4, 2020 01:55
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BUT MOTRONIC, MY ATTORNEY'S ALWAYS LIKE "ugh eat faster stop trying to commit crimes" AND I'M LIKE BUT I WANNA COMMIT CRIMES
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May 4, 2020 03:33
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Does appraisal need to be at/above the house offer, or the mortgage itself?
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May 4, 2020 04:23
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Motronic posted:Glad you're finally figuring this out. What does your real estate attorney have to say about this? (yes, it's obvious you don't have one) I have a real estate attorney but he's sidelined apparently, because the bank attorney started the title work before I decided on bringing my guy in and he didn't wanna step on any toes. I guess I can still pay him for counsel even if he's excluded himself from closing. street doc posted:Does appraisal need to be at/above the house offer, or the mortgage itself? It has to be at/above the house offer, but the one helpful thing is because it's 10% under and the bank is loaning 10% less, it also means my down payment is 10% lower so those savings can go towards paying the difference. So the appraisal being $80k under actually means I need like $64k to make it up. Zero VGS fucked around with this message at 04:44 on May 4, 2020 |
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May 4, 2020 04:30
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My attorney said "but why?" when I asked for personal representation. He reviewed the paperwork (which were all standard Realtor™ forms) for offer, inspection, and closing. In the end, he never charged me. I'm guessing if something did end up going sideways, things wouldn't have worked out as well for me given all this. E: if your attorney is doing title work, they are not your attorney. This was the battle I had with the "but why?". All the names I got from my stepmother (who is in real estate) also did title and closings, and if they are doing the title and closing, they are not representing you. I had to specifically ask for personal representation rather than what they wanted which was to cash in on a closing. This was in NH. I can't imagine MA is that different. carticket fucked around with this message at 04:36 on May 4, 2020 |
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May 4, 2020 04:33
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Zero VGS posted:Okay, so I might still be able to close on this house now if I can get the seller to meet me halfway and take around 40k off the 80k it was underappraised at. Doing a transaction outside of closing like this is probably mortgage fraud, and you would be the one responsible even if everyone goes along with it, and the sellers seem like they are taking the biggest risk. There is no blanket ban on cash gifts, and a record of where it came from depends on where it came from. Ask your lender if the giftee can provide an LOE on where the cash came from, their regular job or the sale of their previous home or wherever it actually came from. If the giftee got the money from illegal activity or they have been lying about their taxes they probably won't do that. If its not really a gift and you need to pay it back, that's mortgage fraud. Unless you are getting an fha or VA loan you can switch lenders and get a new appraisal instead of committing mortgage fraud
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May 4, 2020 09:40
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lampey posted:There is no blanket ban on cash gifts But in the current climate trying to close with gifted money seems to be hugely problematic from what I've been hearing.
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May 4, 2020 13:56
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lampey posted:Unless you are getting an fha or VA loan you can switch lenders and get a new appraisal I went through like 30 different lenders, no exaggeration, and this was the only one who would do 20% down on this many units when everyone else wanted mostly 30 or occasionally 25. But with this appraisal it's effectively the same as needing a 30% down payment anyways, so maybe if I can go back to one of the 25% places and see. Still waiting on a reviewed copy of the appraisal to see if I can negotiate a price drop to get this over with.
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May 4, 2020 16:34
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I have saved my pennies, figured out what I can afford, and sought preapproval. Credit score doesn't matter within a range, right? I fluctuate between 795-805 depending on the balance on my credit cards (paid off monthly). Edit: 'we've tightened our guidelines with the COVID-19 crisis" get hosed chase. Deviant fucked around with this message at 19:57 on May 4, 2020 |
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May 4, 2020 19:40
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I don't suggest fraud, but in my experience they are not interested in bank statements from more than two, sometimes three months ago depending on where in the month the application happens. Cash gifts made before this time don't seem to matter, or at least they're not required to be disclosed(? maybe?). I think the idea is that if you take out a personal loan and deposit it in your account (probably? what they're actually concerned about with cash gifts, or maybe that cash gifts disrupt analysis of your average monthly cashflow), the personal loan will show up on your credit report within 60 days plus they'll see the payments to the lender in your bank statements. TL;DR cash gifts don't matter so long as they've been in your account for probably 60+, most likely 90 days
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May 4, 2020 20:03
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Deviant posted:I have saved my pennies, figured out what I can afford, and sought preapproval. If you're 760+ you ought to be fine so long as you're putting down at least 15% and not doing what's considered a jumbo loan in your area, somewhere between 475-650k but could be higher in other areas like california.
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May 4, 2020 20:10
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Hadlock posted:If you're 760+ you ought to be fine so long as you're putting down at least 15% and not doing what's considered a jumbo loan in your area, somewhere between 475-650k but could be higher in other areas like california. I'm looking at putting about 5-10% down, though waiting only serves to benefit me (more pennies in savings, etc), and i'm not coming anywhere near my debt ratio. Even the Chase rep let me know that their restrictions re covid-19 are pretty aggressive, and i might have better luck with another offering bank. That said, I got a few numbers in from of me for what they think I can afford vs what I think I can afford, and I can do some shopping. Looking for something around 32707, 250-300 on the low end, as high as 400 for the right home. I could afford higher with my monthly income, but my %down would be so low as to be a non starter. Fortunately it seems to line up well with my dream of a 4/2 or 3 with a 2 car garage Deviant fucked around with this message at 20:18 on May 4, 2020 |
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May 4, 2020 20:14
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 The seller of my house wants to close before they repair and we inspect a window they're supposed to replace as a contingency upon closing.
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May 4, 2020 20:14
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Henrik Zetterberg posted:
That's fine if you're willing to deal with it. The common method would be to put the estimate plus some percentage into escrow to be released only if they have the work completed and paid for within X days. If they fail to perform you get the work done and the money comes out of the escrow account.
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May 4, 2020 20:25
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So, I had no idea chase was restricting their loan guidelines due to COVID, and I ran afoul of a hard req of 20% down for a conventional loan. I'm not married to them, particularly not for a prequal, I just already bank with them so it was easy. Is there a list of banks increasing their guidelines, or is there a recommendation for a prequal lender that isn't quite so iron fisted? I see bulk houses like Bankrate, Rocket Mortgage, etc If not, no big deal, again, my situation only improves with time, and I do have an idea what I can shop for. Deviant fucked around with this message at 20:40 on May 4, 2020 |
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May 4, 2020 20:35
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Got my reviewed appraisal, value is still stuck at the same amount, it's funny that they value the basement at 1/5th the price of the other units because it's below grade, even though it's otherwise identical. Likewise the above-grade and very nice garage is also 1/5th valued for the sqft. Seller balked when I first suggested lowering the sale price but now I've sent them the full appraisal to let them mull it over so we'll see how that goes. Deviant posted:So, I had no idea chase was restricting their loan guidelines due to COVID, and I ran afoul of a hard req of 20% down for a conventional loan. You can definitely get 15% or 10% loans on a single-family conventional still, if you know where to look. Some don't even charge PMI; of course that money has to come from somewhere so it's usually in the form of a slightly higher interest rate, but it tends to come out way better than the $400/month of PMI you'd piss away on a 400k house. Try asking Navy Federal, they have some good low down payment PMI-free products, and they work absolutely crazy hours (like they'll do your loan app at midnight any day of the week, at least before covid). They won't loan on anything more than a duplex though.
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May 4, 2020 21:09
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we closed on a pre-covid mortgage with a local bank with a conventional 30 year mortgage with 5% down... but again pre-covid, we closed apr 1 so things were less organized yet RE the appraisal. If it appraised low then they'll need a cash buyer or take a risk that another appraiser will go up 40k in price, generally they don't. Had a similar low appraisal, got it re-appraised still came in low.. buyer ended up coming down to our price because they didn't want the house to just sit on the market during covid and wait for the world to open back up at some point.
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May 4, 2020 22:09
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Zero VGS posted:I went through like 30 different lenders, no exaggeration, and this was the only one who would do 20% down on this many units when everyone else wanted mostly 30 or occasionally 25. But with this appraisal it's effectively the same as needing a 30% down payment anyways, so maybe if I can go back to one of the 25% places and see. Still waiting on a reviewed copy of the appraisal to see if I can negotiate a price drop to get this over with.
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May 4, 2020 22:09
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Dik Hz posted:Do you think it's a coincidence that the place that only wanted 20% down also used an appraiser that came in really low? It crossed my mind but that's pretty far into conspiracy theory territory. I mean, my lender only does mortgage loans, nothing else, that's how they make money. The appraisal company is PCV Murcor who then subcontracts an individual appraiser. Maybe someone more in tune with the appraisal industry can chime in but it seems farfetched that a lender would pick an appraisal company with the premeditation of hinting all the way down to the individual appraiser that they want the place to be undervalued (and having it come this far under throws the whole deal in jeopardy). On top of all that, I got my last property with this same bank and loan agent, and the appraisal was fine, though it was a VA loan and I think they source their appraisers differently. But yeah, I think it's a coincidence.
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May 4, 2020 22:42
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By law the bank doesn't employ and cannot pick the appraiser.
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May 4, 2020 23:14
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Deviant posted:I'm looking at putting about 5-10% down, though waiting only serves to benefit me (more pennies in savings, etc), and i'm not coming anywhere near my debt ratio. Even the Chase rep let me know that their restrictions re covid-19 are pretty aggressive, and i might have better luck with another offering bank. That said, I got a few numbers in from of me for what they think I can afford vs what I think I can afford, and I can do some shopping. 300k with a 775+ credit score shouldn't be a problem. Not sure about the 5/10% down but it's not a jumbo so it's going to be easier You might be able to do a 10/10/80 with 10% down but it's getting increasingly harder to do a 10% heloc in the current pandemic environment, a lot of the big institutions are not allowing them anymore. I know a guy (who I worked with on my house last month) if you want a contact, he did our post-covid for less than 20% down. If you want to buy with low % down you'd better start moving. Stock market is going up but the economy is only just now getting sour. Hadlock fucked around with this message at 23:29 on May 4, 2020 |
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May 4, 2020 23:27
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Zero VGS posted:
I'm pretty sure my PMI is somewhere between $90 and $100/mo on a 10% down $374k home. I feel like your off the cuff PMI estimation is a bit off.
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May 4, 2020 23:53
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Mr. Powers posted:I'm pretty sure my PMI is somewhere between $90 and $100/mo on a 10% down $374k home. I feel like your off the cuff PMI estimation is a bit off. Err you might be right because my main exposure to PMI was pricing out the FHA loan, I think their version of it might be significantly higher than normal PMI. It also doesn't cancel out when you hit 25% equity like normal PMI does. It also might be because I was checking it very recently. Sorry if I'm off!
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May 5, 2020 00:34
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therobit posted:By law the bank doesn't employ and cannot pick the appraiser. Because sometimes banks are incentivized for the appraisal to come back at the ask price and sometimes they're incentivized to hedge risk by it coming in low. And it always seems to happen that way. Must be a coincidence right? And not banks and appraisers acting in their own incentivized self-interest?
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May 5, 2020 00:43
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Hadlock posted:300k with a 775+ credit score shouldn't be a problem. Not sure about the 5/10% down but it's not a jumbo so it's going to be easier Yeah, I know a realtor who can probably hook me up with a broker who will work with me. I'll dig something up. But I have a lease rn so I have no urgency really. This time next year is just as good. I'm phone posting but your contact would be cool. Also you're thinking now is a good time re interest rates? I'm definitely willing to suck up pmi for a bit and refi it out later if that makes financial sense Deviant fucked around with this message at 01:21 on May 5, 2020 |
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May 5, 2020 01:16
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Deviant posted:Yeah, I know a realtor who can probably hook me up with a broker who will work with me. I'll dig something up. But I have a lease rn so I have no urgency really. This time next year is just as good.
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May 5, 2020 01:31
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