Purchase price - $250k (15.5k under listing price | 1941 true colonial, 3,950 sq.ft.)
Sellers Credit - $7K
% Down - 0
Product - USDA
Mid score - 760
Rate - 2.45% (Locked)
Estimated Close Date - 3/30/2021
Other Info - Listed for $265.5, $4,000 seller credits. Initial offer of $245,500 w/$7,000 sellers credit. They countered with $255,500 w/$7000 seller credit. I countered back with $250,000 w/$7,000 seller credits and they accepted. This process took 2 days.
It should be noted that the market isn't the same everywhere. Where I am buying is still a sellers market, but not quite as hot and there is only slightly more inventory. I also happened to do some "oppo" research and discovered the owner has lived away from the house for 6 years, has a tenent, is not a great landlord, and is pretty loaded as he is the president of a hospital system many states away. I had a gut feeling that he is really motivated to sell and that's why I came in a bit aggressively, but we landed on what I really wanted. $265.5 was too high for the area and comps were right at around $250k, so got what I was initially after all along. It helps that I am an analyst both by career and nature and we have been studying the market since early 2019 and it helped IMMENSELY.
The reason I went with USDA is because it is a strategic move. Currently own existing home, but it is only in my wife's name, so doesn't count to my DTI. Her name won't be on the new mortgage for now because she has been a stay at home mom for 18 years and only bring student loan debt and no income. I don't want to move twice, so I wanted to get a new house, then finish the last few remodeling items on the existing home, sell it and enjoy the crazy sellers market in the area where our current home is. We will then take the equity from that sale, roll most of it over into the principal of of the new home to get it below 80% LTV, then refinance under a convention to get out from under PMI. This should happen within 8 months. By using the USDA, we don't have to lock thousands we'd spend on the down payment of the new home into the equitiy of the new home. Instead, we can spend it on the remaining remodeling of existing home.
Just got a conditional approval through the USDA GUS this morning, with the conditions being the appraisal that will happen before the end of next week, clear title, etc.
