Does anyone know exactly what it take to purchase a second home?
I'm presently in the open market for the purchase / possible flip of a second home. I have hear that to aquire a loan, requires a 25% down payment, 1/2 - 3/4 of a point complex on interest, & even a point or more to be paid as very well. Any truth to this matter?Answers: We haven't purchased any more homes since the housing open market went wacko, so I can't articulate about immediately, there's a good hit and miss lenders are going to be a lot more strict than they be a year ago. But we have our primary residence, and 3 rental properties. Of adjectives 4 of the houses, we only put down payments on 2 of them (and even used 6% seller's concession surrounded by both of those.) The other two homes, we put no money down. Of course we're paying a monthly PMI, but it made for quick and comfortable closing and now that they're renting out we can glibly prepay and will drop the pmi soon.
I'm sure it would be a lot harder presently to get a loan on a second home though, beside the way things are going and the change that have be made.
I have see a min. of 10 % down for a second home but the more you put down the lower the interest.
Just curious if anyone has problems with Illegal Vacation Rentals in their towns?
Answers: What are illegal vacation rentals? Do you mean a person is "using" the house as their primary residence but they are actually renting it out? If that's what you mean, how do you know they purchase the house as their primary home?
Closing costs for house?
My husband and I are planning to put a bid in on a house tomorrow. According to our loan officer (who is also my sister) closing costs will be over 10,000. She said to ask for 6% salesperson consession towards help next to closing, then we would singular have to reward 1500-2000 towards it.I just get a email from the realor with some type of dutiful faith emtimate (I'm really confused as to what it was). At the bottom it say something like seller are only allowed to distribute up to 3% of the mortgage towards closing which would be around 6,000.So, I don't get it. Seems approaching I'm hearing two different things. Any relief is appreciated.
Answers: Your lender should know how much closing help the street trader can pay. Not the realtors.
Usually the amount that the merchant can pay is tied directly to the amount of your down salary. If you are putting less afterwards 10% down, then the peddler can usually only earnings UP TO 3% of the sales price. With 10% or more down, they can clear up to 6%. But this varies near loan programs. This is why your LENDER would know and not the realtor.
Also, your lender should be providing the good belief estimate. NOT THE REALTOR. The good idea estimate, is is required by law to be provided by the lender, is a detailed break down of adjectives the loan/closing expenses to purchase the home.
Plus in Maryland, verbs taxes are usually split 50/50 and if you are (both) a first time home owner in MD, you will receive another .25% break on the transfer taxes. Transfer taxes surrounded by MD can run up to 3% of the sales price. Depending on which county.
Before you put a submission on the property, make sure of what you are doing. If you ask for 6% and you find 6% from the seller and after the lender says you can lone do 3%, you have lost the other 3%. The dealer can't give you bread at closing. And the way it's written into the contract is that "the wholesaler will pay UP TO 6% of the purchasers closing costs.
PS. to the posters that articulate it sounds to high. They don't know what they are discussion about minus knowing the facts and the price of the home. MD has VERY large transfer taxes. Baltimore city and county, PG county, and Montgomery county are BAD.
Your sister isn't spanking new at this is she?
Sounds way to giant to me, I'd shop around for better terms.
Legally the vendor is only allowed to rate 3% of your closing costs due to the 100% financing and type of loan. You can always ask for more but the lender will not allow more than 3% because of political affairs guidelines on an FHA loan. A Good Faith Estimate is just that. It is an estimate of your closing costs for this transaction. The fitting faith estimate comes from the escrow officer who info the file the first time next to the lender requirements, escrow and title fees,origination fees,taxes,etc. This estimate is in constant revise even up to the last minute. Your sister as a Loan Officer know this. She is trying to tell you to return with the seller to take-home pay more so it will cost you less which is wrong considering the position she is contained by. She can get into trouble for this so be aware of how she is handling the loan. I hold nothing against your sister and I'm sure she is trying to look out for your best interest.
Your sister is wrong. The salesperson can only grant up to 3% sellers concessions, sorry. On the $10,000 within closing costs, does that include "prepaids" (taxes and insurance?) From the info that you've given the purchase price is about 200k. I close loans that amount everyday for alot smaller quantity. I'm assuming that your sister "bought' the rate down significantly. You can go to another lender or own your sister raise the interest rate, that will lower the closing costs. What interest rate is she giving you immediately?