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I need some advice.

Frequent Contributor

I need some advice.

My mom just called me and told me about a house that is for sale that belongs to the wife of a gentleman that she wored for for 25 years. The wife is in a nursing home and the niece has emptied the house and is selling it for the wife.  The wife is set for life financially so money isnt really an issue for her.Somehow the house had slipped by me in the listings so I went back and searched for it and for various reasons,  it is a house that I am interested in.


Here is the problem, I am approved for a PITI payment of 1245.00 (the paper says 175,00 but there is such a great variation in taxes around here that the LO told me the PITI payment so I could figure out myself if it was in the ballpark)


The house is listed for 199,000 and that is after it came down from 239,000.I don't know the taxes yet but when I calculate max taxes and insurance for this area, it comes in at about 1370.00 PITI which is about 125.00 more than I would be approved at.


I know she calculated me at the max DTI and there really isn't nothing I can pay off. I have a student loan, a carloan and a cc payment. If I pay off one of them, I wipe out my savings.


I am going USDA and while I have about 10,000 in the bank, if I pay a down payment to try and get me in the ballpark, I wipe out my savings.


I played with the numbers. If I could get her down to about 185,000 it comes in the ballpark of what the LO told me.


I was counting on 3% sellers assist to keep some money in my savings and I would think that if you are asking for sellers assist, you probably shouldn't try and drive the price down. Am I right?


What do you think the probability is of getting her down to 185,000? With 3% sellers assist?


When I had my appt with my mortgage person, she told me that she had just closed a loan very similiar to mine and the closing had been just shy of 8,000 or 4.5% (on the 23rd of Feb so lower prepaids) so if I extrapolate the math to 185,000, that is about 8400 total closing and I pay the whole thing which almost wipes out savings.


Would it be wrong to contact her privately or have my mom do it (she and my mother knew each other very, very well, my mom even helped her around the accident after she became immobile) and also worked for her husband for 25 years?


What should I do?

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