topic Re: FHA or conventional? in Mortgage Loans

FHA or conventional?

Anonymous — Wed, 22 Feb 2017 06:07:02 GMT

My husband and I got our pre approval yesterday for FHA, both with a mid score of 634. Our lender gave us some advice to pay down a few of our credit cards and to get our scores to 640 that way we get a better rate (no problem) took care of that right away.
We had an appointment to look at a home this evening and ended up making an offer on it. Its a bank owned home, that needs a few minor repairs. Nothing that we can't take care of once we're in it. We shot a really low offer partly because we know how long the home has been on the market and partly because we know the bank will refuse to do any repairs on the home.
We already know that because of the FHA guidelines for the appraisal/inspection that there's a very good possibility we're going to have to switch to a conventional loan during this process.
I'm going to try my best to keep my sanity through it all and to keep this thread updated for anyone else who may be dealing withwith a similar situation.

Re: FHA or conventional?

DallasLoanGuy — Wed, 22 Feb 2017 17:30:46 GMT

have your lender pre-approve you for conv just in case.... and get a rate/fee estimate.

Re: FHA or conventional?

H-B — Wed, 22 Feb 2017 22:06:35 GMT

You can go for renovation loan under FHA. If you want to stay under FHA that will okay in your loan scenario. But you can always ask your lender if they can qualify you for conventional loan.

Re: FHA or conventional?

Anonymous — Fri, 24 Feb 2017 04:20:35 GMT

We got a counter offer from the bank yesterday. They asked for $2,000 more than we offered. $1,000 earnest money deposit instead of $500. and instead of giving us 10 days to have the home inspected they wanted to give us 5. This was a completely ridiculous request as far as I'm concerned, considering there is no utilities currently on at the home and it would take us some time just to get that done. We countered back with giving them the $2,000 they asked for but a $500 deposit, the 10 days for the inspection period and them paying 3% towards closing.

Haven't heard anything back yet but the more we think about it, it seems like no matter what they come back with we'll just tell them we aren't interested anymore. The fact that they want to rush our time to have an inspection makes me very worried that there might be a whole lot more wrong with this home than what our eyes can see.

I think we'll just keep looking for something that's in a little better shape. Our lender has set us up with our own Realtor and we are meeting with her tomorrow.

Re: FHA or conventional?

Anonymous — Thu, 02 Mar 2017 04:50:59 GMT

*update*
We found another home we were interested in and had a walk through last week. The home fit everything we were looking for but had one issue, an in ground pool that doesn't look lke its been used in years. We knew this would pose some sort of an issue during the FHA appraisal and according to our lender it could possibly be a issue even if we went conventional.
We met with our Realtor today to look at the home again and discuss the possibility of the seller either repairing or filling in the pool, this was at 4:30 by 7:00 we got the call that they accepted our offer!

Re: FHA or conventional?

Anonymous — Thu, 02 Mar 2017 14:49:48 GMT

@Anonymous wrote:
*update*
We found another home we were interested in and had a walk through last week. The home fit everything we were looking for but had one issue, an in ground pool that doesn't look lke its been used in years. We knew this would pose some sort of an issue during the FHA appraisal and according to our lender it could possibly be a issue even if we went conventional.
We met with our Realtor today to look at the home again and discuss the possibility of the seller either repairing or filling in the pool, this was at 4:30 by 7:00 we got the call that they accepted our offer!

Fantastic news! Keep us updated in the next closing thread!!

Congrats!

Re: FHA or conventional?

DallasLoanGuy — Thu, 02 Mar 2017 15:18:06 GMT

tell your realtor to find you an inspector that knows pools.... that needs to be scrutinized for possible issues.

negotiate repairs during the option period

Re: FHA or conventional?

Anonymous — Sun, 12 Mar 2017 07:47:08 GMT

We received and e-signed all of our disclosures on 3/9 also had a home inspection scheduled for that evening. Overall, inspection went well. There were three minor things we requested the seller fix. Our Realtor sent me an email the following day to say that the seller agreed to fix what we requested.
3/10 got a text from our LO to tell us that our file has been sent to the processor.
3/11 I sent my LO a text to ask him if we could delay ordering an appraisal and instead have our file sent to UW first. Between earnest money and the inspection we've already paid $1,300 and for some reason I'd feel better knowing that we are fully approved (pending appraisal) of course, before I dish out another $500.
He understood and said that it was no problem. The appraisal would not be ordered until we made it through UW.
Now, my heart is in my stomach and I'm super nervous! We have a closing date of 4/20 as per our contract and I'm so stressed out over all of this.