FHA Loans

[alkemyst]

Originally posted by: BoberFett

Originally posted by: alkemyst

Originally posted by: arkcom
You guys realize having a Realtor wont cost you anything right? The seller pays all the commission, and it's the same weather you bring your own Realtor, or use theirs (the sellers agent does not represent you, or your best interests).

Have you really thought your idea out?

Have you?

Yes, but let me explain so both of you can see your flaws.

Without an agent you are talking 3-6% difference in what the seller ultimately gets back. If you seriously believe that doesn't affect the ultimate price you pay you are deluded.

Any agent you hire unless working on a flat rate is not truly representing a buyer ever. They are really always the seller's agent.

The RE agent commission model doesn't scale to the buying side. The "buyer's agent" was created during a time when stock wasn't too high in these sharks in an attempt to spin it.

They say a buyer's agent is required to present any offer you make, but myself included; have had to get into long debates in order to get our 'low ball/insane/etc' offer to the seller.

Both times in my own family (me and my parents) our offer was accepted. My parents had no counter...my seller wanted to make it so I paid their asking price, but they'd hand cash back at closing...it netted out better for me actually. I think they didn't realize I could pull the cash out of the sale like we did. The loan would never fly now.

 

[BoberFett]

Don't bullshit me, I was a licensed agent. I know the game.

Without an agent, the agreed upon selling fee doesn't change. When the seller signs a contract they agree to pay X% of the sale price of the home. Unless you can wiggle your way out of that contract and sign one that lowers the rate when the buyer comes without an agent, the seller can't lower their price because they pay the same regardless.

And even if the seller does manage that, no seller's agent is going to do the work for the buyer for free. Most buyers don't know what they're doing. They just want to buy a house. They don't know what addendums should be included with a PA. An uneducated buyer without an agent is going to get taken to the cleaners by a smart seller's agent.

And gifting money at close is a good way to end up in PMITA prison. If it's not on the HUD1 you're going to get your ass handed to you someday. If it is on the HUD1 there are limits to what can be seller paid, especially with FHA.

 

[BoomerD]

We bought our house 10 years ago using an FHA loan. No problems what so ever.

IMO, the process was actually faster and easier than when we refinanced it 4 years ago.

Yes, you have to pay PMI until you accumulate enough equity, but IIRC, it isn't a big amount.

Codewiz pretty much mirror's our experience. Pre-approval is an important step, although time-wise, not as important as it was just a couple of years ago.

 

[Turin39789]

Originally posted by: BoberFett
Don't bullshit me, I was a licensed agent. I know the game.

Without an agent, the agreed upon selling fee doesn't change. When the seller signs a contract they agree to pay X% of the sale price of the home. Unless you can wiggle your way out of that contract and sign one that lowers the rate when the buyer comes without an agent, the seller can't lower their price because they pay the same regardless.

And even if the seller does manage that, no seller's agent is going to do the work for the buyer for free. Most buyers don't know what they're doing. They just want to buy a house. They don't know what addendums should be included with a PA. An uneducated buyer without an agent is going to get taken to the cleaners by a smart seller's agent.

And gifting money at close is a good way to end up in PMITA prison. If it's not on the HUD1 you're going to get your ass handed to you someday. If it is on the HUD1 there are limits to what can be seller paid, especially with FHA.

Things I've heard of -

Some sellers have no agent.

If the seller has an agent who is getting 6%, and they would normally give half of that to the buying agent, negotiate for that 3% for yourself.

 

[Pacemaker]

Originally posted by: Turin39789

Originally posted by: BoberFett
Don't bullshit me, I was a licensed agent. I know the game.

Without an agent, the agreed upon selling fee doesn't change. When the seller signs a contract they agree to pay X% of the sale price of the home. Unless you can wiggle your way out of that contract and sign one that lowers the rate when the buyer comes without an agent, the seller can't lower their price because they pay the same regardless.

And even if the seller does manage that, no seller's agent is going to do the work for the buyer for free. Most buyers don't know what they're doing. They just want to buy a house. They don't know what addendums should be included with a PA. An uneducated buyer without an agent is going to get taken to the cleaners by a smart seller's agent.

And gifting money at close is a good way to end up in PMITA prison. If it's not on the HUD1 you're going to get your ass handed to you someday. If it is on the HUD1 there are limits to what can be seller paid, especially with FHA.

Things I've heard of -

Some sellers have no agent.

If the seller has an agent who is getting 6%, and they would normally give half of that to the buying agent, negotiate for that 3% for yourself.

In the second case the selling agent is also the buying agent (at least that's how it was explained to me by the agent I used) and they would get the full 6% (or whatever the percent is).

 

[OCGuy]

3.5% down, great program. Great rates right now. I helped by buddy get into a condo, and my future sister-in-law into a nice house using those loans here in CA. :thumbsup:


You will need to get a pre-approval when you make an offer, as you said. Basically you will be getting a credit/income approval. You will have to give paystubs and a bank statement showing your 3.5%.

 

[Miramonti]

Originally posted by: JS80
Is there an income cap on FHA loans and is there a loan max?

Around here (not sure if its everywhere) FHA loans are available with <$56k household income, and up to $275k loan, or something close to that.

found this:
Find max fha loan limits for your area

 

[V00DOO]

Originally posted by: Aimster
I want to apply for an FHA loan so I can use the remainder of my money for "emergencies"

I have 20-30% down. I rather put 3.5% down and keep the rest in savings + get 8k from the govt.

I can do that right? I mean FHA is not for 'poor' people is it?

With only 3.5% down, are you required PMI? Anyway FHA loans may be the next shiz to hit the fan. Delinquency Rate Rises on FHA-Backed Loans

 

[alkemyst]

Originally posted by: BoberFett
Don't bullshit me, I was a licensed agent. I know the game.

Without an agent, the agreed upon selling fee doesn't change. When the seller signs a contract they agree to pay X% of the sale price of the home. Unless you can wiggle your way out of that contract and sign one that lowers the rate when the buyer comes without an agent, the seller can't lower their price because they pay the same regardless.

And even if the seller does manage that, no seller's agent is going to do the work for the buyer for free. Most buyers don't know what they're doing. They just want to buy a house. They don't know what addendums should be included with a PA. An uneducated buyer without an agent is going to get taken to the cleaners by a smart seller's agent.

And gifting money at close is a good way to end up in PMITA prison. If it's not on the HUD1 you're going to get your ass handed to you someday. If it is on the HUD1 there are limits to what can be seller paid, especially with FHA.

ahh another fly-by-night broker.

If you are dealing with no agents then there is no fee, got it? Have one or two then yeah it's going to be there.

I don't know what agent has to do with much though...you can get the paperwork free on line and unless a moron should be able to fill it out and have the seller sign it. The bank will double check you definitely.

Don't know how you created gift money out of my situation. We did use the funds to cover my hazard insurance, a door, paid off a few credit cards...and like I added the loan would never fly today. It was bought by CitiMortgage though and everything was on the up and up.

I have been involved in the mortgage industry in various capacities since I was 12...I am 38 now.

 

[alkemyst]

Originally posted by: JS80
Is there an income cap on FHA loans and is there a loan max?

http://www.fhainfo.com/index.asp

 

[OCGuy]

Originally posted by: V00DOO

Originally posted by: Aimster
I want to apply for an FHA loan so I can use the remainder of my money for "emergencies"

I have 20-30% down. I rather put 3.5% down and keep the rest in savings + get 8k from the govt.

I can do that right? I mean FHA is not for 'poor' people is it?

With only 3.5% down, are you required PMI? Anyway FHA loans may be the next shiz to hit the fan. Delinquency Rate Rises on FHA-Backed Loans

Yes, you will have PMI, but it is reasonable.

The upfront PMI fee can be paid by the seller if you have a good real estate agent.


On top of the 8K from the feds, CA is giving thousands of dollars as well if you buy new construction.

With FHA rates in the high 4s / low 5s, it is pretty much a perfect storm right now to buy if you can genuinely afford it.

 

[actuarial]

Originally posted by: alkemyst
If you are dealing with no agents then there is no fee, got it? Have one or two then yeah it's going to be there.

The question isn't whether or not no agents equals no fees, it's whether there is a difference in price paid between a person having a selling agent and you having a buying agent, and them having a selling agent and you having no agent.

AFAIK there is not difference. When a seller sells onto an agent, they agree to pay X%, which they pay regardless of whether or not the buyer has an agent. If they do have an agent, that agent gets half of what is paid to the seller's agent.

Can you tell me exactly how a buyer's agent costs you money if the seller already has an agent?

 

[shopbruin]

Originally posted by: OCguy
On top of the 8K from the feds, CA is giving thousands of dollars as well if you buy new construction.

With FHA rates in the high 4s / low 5s, it is pretty much a perfect storm right now to buy if you can genuinely afford it.

Which is part of why I want to buy in the next few months but reading about sellers hating the FHA loan process was a tad frightening.

Although with new construction, this hopefully should not be a problem... if I can find new construction I like. They always seem to have something I don't like - mostly problems with the area, since they're building in the last few places of open, easily purchased land.

Everyone has been pretty helpful here though. The only problem may be salary history since the hubs just finished law school in May so he doesn't have 2 years of continuous work experience but I do. Everything else isn't a problem.

 

[OCGuy]

Originally posted by: freesia39

Originally posted by: OCguy
On top of the 8K from the feds, CA is giving thousands of dollars as well if you buy new construction.

With FHA rates in the high 4s / low 5s, it is pretty much a perfect storm right now to buy if you can genuinely afford it.

Which is part of why I want to buy in the next few months but reading about sellers hating the FHA loan process was a tad frightening.

Although with new construction, this hopefully should not be a problem... if I can find new construction I like. They always seem to have something I don't like - mostly problems with the area, since they're building in the last few places of open, easily purchased land.

Everyone has been pretty helpful here though. The only problem may be salary history since the hubs just finished law school in May so he doesn't have 2 years of continuous work experience but I do. Everything else isn't a problem.

If he went into the exact same field as he was studying in school, he will be able to get a FHA loan without 2 years work experience. They will count the school experience.

 

[amdhunter]

Originally posted by: OCguy
3.5% down, great program. Great rates right now. I helped by buddy get into a condo, and my future sister-in-law into a nice house using those loans here in CA. :thumbsup:


You will need to get a pre-approval when you make an offer, as you said. Basically you will be getting a credit/income approval. You will have to give paystubs and a bank statement showing your 3.5%.

Damn, is there an income limit to this? Or is it only for the "poorer" folk. I don't make a whole lot, but more than most people around me. I also have extremely good credit. Will that make me less likely to get this kind of loan?

 

[OCGuy]

Originally posted by: amdhunter

Originally posted by: OCguy
3.5% down, great program. Great rates right now. I helped by buddy get into a condo, and my future sister-in-law into a nice house using those loans here in CA. :thumbsup:


You will need to get a pre-approval when you make an offer, as you said. Basically you will be getting a credit/income approval. You will have to give paystubs and a bank statement showing your 3.5%.

Damn, is there an income limit to this? Or is it only for the "poorer" folk. I don't make a whole lot, but more than most people around me. I also have extremely good credit. Will that make me less likely to get this kind of loan?

Nope, there is no income limit. Great credit does not hurt you at all. You need a 620 minimum, anything above that is gravy.