Author Topic: Anyone looking for a house in Texas? (Read 921 times)

Matthew · « **on:** August 06, 2008, 02:08:38 PM »

Here is the house I recommend:
(There's only one house on the whole site *grin*)

Schertz Real Estate

Matthew · « **Reply #1 on:** August 21, 2008, 04:36:36 PM »

We just lowered the price!

If you know anyone who wants to move to Texas, please pass it along!

MichaelSolimanto · « **Reply #2 on:** August 23, 2008, 12:59:29 PM »

Hey Matt,

Did you ever find out if it was USDA eligible for 102% financing?

Let me know champ.

MaterDominici · « **Reply #3 on:** August 23, 2008, 01:42:14 PM »

Nope, not eligible. They have a mapping system online. Anything in Cibolo, a mere 5 blocks away, is eligible, but our house is not. Oh well.

So, we've pretty much gone with lowering the price a bunch to make it as appealing as possible to the actual buyer.

I'm working now on deciding what our Realtor.com showcase should say. We get a headline--any ideas on what would convince people to click on the ad?

Matthew · « **Reply #4 on:** August 23, 2008, 02:13:02 PM »

"Free beer" :cheers:

That would certainly appeal to Joe Sixpack (of beer).

MichaelSolimanto · « **Reply #5 on:** August 23, 2008, 05:27:54 PM »

Quote from: MaterDominici

Nope, not eligible. They have a mapping system online. Anything in Cibolo, a mere 5 blocks away, is eligible, but our house is not. Oh well.

So, we've pretty much gone with lowering the price a bunch to make it as appealing as possible to the actual buyer.

I'm working now on deciding what our Realtor.com showcase should say. We get a headline--any ideas on what would convince people to click on the ad?

You have got to be kidding me. You house is 5 blocks away from it. That's just insane.

Ok, so here is what you do... I would try to push the terms 100% Financing available on your website. I would NOT lower the price just yet. How can you give 100% financing? FHA and grant programs like Nehemiah and programs like Ameridream.
http://www.fha.com/program_nehemiah.cfm
http://www.fhaloan.com/nonprofit_ameridream.cfm

Here is why you DON'T want to lower the price so much:
FHA is 97% financing
You grant 3% to down-payment costs
You concede 3% to closing costs

So if the house will appraise for $109k you will have to give $6k in concessions giving you $103k. If you start at $98 you net $92k more or less. You are better off repricing it at $104 and giving 100% financing through a grant and concessions.

In today's market it has little to do with price, but payments and cash down. Dropping your house $9k is a difference in $72/mo in payments. That's right just $72. BUT take all people who have little money down (which is most) and you expanded your base.

This is how I would advertise on Craigslist and Trulia:
100% Financing-No Money Down Great House in Schertz

When advertising with realtors I wouldn't run that line. I would say "Special Financing available up to 100% of total costs. Seller is motivated." I would start with something like that and then give all the benefits of why they should buy your house. If you decide to keep the lower price you must raise it with a realtor to cover their costs.

Gotta run

Matthew · « **Reply #6 on:** August 25, 2008, 09:59:39 PM »

How do you get your home "qualified for Ameridream"? It sounds like a house has to qualify to participate in that program.

The website doesn't say much about what sellers should do.

Matthew

MaterDominici · « **Reply #7 on:** August 25, 2008, 10:38:09 PM »

And now for my questions. :smile:

I'm trying to figure out FHA loans. If and when we have anyone contact us about actually buying the house, I'm sure they won't be an expert on how to get into a home they can afford. Both of our loans have been conventional, so I know nothing about FHA.

What I've read so far has told me that sellers (or other people) can contribute up to 6% of the home value, but that the buyer still has to pay 3% downpayment. But, then other places suggest that the 6% can include 3% toward the downpayment. So, I'm confused as to whether the buyer HAS to have 3% or if they can get into the home for nothing if the 6% from the seller covers downpayment + closing costs.

Also, I read that the 6% limit is dropping to 3% on October 1st. Is that true? It also said that the downpayment will increase to 3.5%.

We had someone call this evening to see if the house was owner-financed. I'm not interested in going down that road, but if it just takes a little know-how to get someone a good bank loan, I'm certainly willing to see if I can figure it out.

It looks like the programs you linked to above are grants. Is that correct? I didn't look at them thoroughly as they assumed you knew something about FHA to begin with, but I got the impression they're another route to getting your 6% contribution if the seller isn't willing to do that, right? And so, if, someday hypothetically, we had an FHA-approved buyer, they could apply for those programs and possibly save us the 6%??

Real estate is such a pain. :faint:

MichaelSolimanto · « **Reply #8 on:** August 25, 2008, 11:48:43 PM »

I don't get paid enough to answer these questions.

A house for Ameridream does not have to necessarily qualify for the program. You live near a huge city in S.A. Go to your yellow pages and find FHA mortgage brokers. You want someone who has closed 20 deals or more in the FHA program. Ask them straight-up, "How many deals have you closed FHA? And how many are you doing this month?" If they are experienced, get 2 in your pocket.

Your next question is, "Does my house qualify for Ameridream?" They will tell you. IF THEY EXPERIENCED they will say, "Well it doesn't matter if it is. There are tons of other programs that do the same thing." (i.e. Nehemiah and others)

Make phone calls.

Unto Mater's moving questions...

"then other places suggest that the 6% can include 3% toward the downpayment." That is the correct answer: 3% closing costs & 3% down is the full concession.

If they use a grant program, and yes those were grant programs, you will not save 6%. Those grant programs are legal, ethical scams called grants. They are not grants like gov't grants, they are simply a nominally legal grant whereby you are granting the money. The gov't is trying to stop these grants, but they lost the first battle but they are going for Round 2 and they don't plan on giving up. These grant programs have to be re-paid on the spot at closing, and these "non-profits" are actually cash-cows where you have to pay them $495 extra for their fee.

These "grants" allow you 6% to the buyer legally without breaking underwriting guidelines. To tell you more than that is just going to confuse you. If you have a good loan officer he will guide you, give you an application to hand to the buyers and all you have to do is fax it back to him or scan and email it. Make their job easier and they will qualify buyers quicker.

REMEMBER REMEMBER underwriting guidelines are constantly under revision and can change on a whim. If the gov't stops the grants WATCH OUT. It's hard to get financing without FHA, even harder without a "grant".

If you get a buyer who needs 10% down but doesn't have it don't worry, tell the loan offer to learn www.dpfunder.com. It will cover that. There are a million ways to skin a cat. Dpfunder.com is something less than 1% of loan officers know about.

Got anymore questions why don't you call me and take notes. I'll be happy to help.

For a fee :cool:

MaterDominici · « **Reply #9 on:** August 26, 2008, 12:05:53 AM »

Thank you!

We'll roll with that info for awhile and see where it gets us.

I'll pay you double when it comes time for the next questions!