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jbelman
254 Posts |
 Posted - 06/21/2008 : 08:41:07 AM
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Hey guys,
I have a property that still has 150K in equity in San Jose, CA and I have a buyer who is interested in purchasing the home.
Fico's are 680 + for two borrowers. Income for both are 58K for both.
The price of the house is 610K . I need to know if there is anyone who can finance this property for these guys who want to purchase the house. I need some help. Thank you. |
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nowbroker
1220 Posts |
Posted - 06/21/2008 : 09:40:34 AM
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| If there was, it would be the next REO in the paper. |
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Hustler12
1199 Posts |
Posted - 06/21/2008 : 12:36:54 PM
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| Have you thought of finding them a 80% 1st and doing a 20% seller carryback? |
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Robert1
5 Posts |
Posted - 06/21/2008 : 1:06:00 PM
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| I ca help you structure this one! Question where is the property located in San Jose,whats the loan amnt,what type of loan,intrest rate and payment? |
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RobStorm
451 Posts |
Posted - 06/21/2008 : 2:29:57 PM
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Am I reading this right? The total income between both borrowers is $58,000?
Lets see..... $4,833 a month..... 50%, Hell, lets even say 55%,.....$2,658.33.
Now, Lets figure they are putting 20% down and have no additional debt....
$610,000 x .8 = $488,000.
$488,000 * 6.5% Interest = $31,720.00 per Year (Interest Only) / 12 = $2,643.33 Per month Mortgage Payment.
Now I would assume there would need to be homeowners insurance and taxes paid right?
Not trying to be rude but unless they both make $58,000 each, I don't see it happening. |
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Hustler12
1199 Posts |
Posted - 06/21/2008 : 2:37:53 PM
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| I'm pretty sure its 58k for each of them. If not, they shouldn't be buying a home in the SJ area. |
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jbelman
254 Posts |
Posted - 06/21/2008 : 3:15:42 PM
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quote:
Originally posted by Hustler12
Have you thought of finding them a 80% 1st and doing a 20% seller carryback?
Thats a possibility ... Email ASAP :) |
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jbelman
254 Posts |
Posted - 06/21/2008 : 3:16:34 PM
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quote:
Originally posted by Robert1
I ca help you structure this one! Question where is the property located in San Jose,whats the loan amnt,what type of loan,intrest rate and payment?
Sales Price is 610K The loan amount well.. Lets just say get the max financing and you can figure the loan amount. |
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jbelman
254 Posts |
Posted - 06/21/2008 : 3:17:43 PM
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quote:
Originally posted by Hustler12
I'm pretty sure its 58k for each of them. If not, they shouldn't be buying a home in the SJ area.
Both borrowers are making that amount TOGETHER. |
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CoolMtgGuy
2799 Posts |
Posted - 06/21/2008 : 3:21:50 PM
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Ever heard the term "combined income"? The combined annual income is only 58k, that is less than 5k/month and they want to buy a 600k house? As a mortgage originator yourself, would you be able to find a loan for these folks?
quote:
Originally posted by jbelman
quote:
Originally posted by Hustler12
I'm pretty sure its 58k for each of them. If not, they shouldn't be buying a home in the SJ area.
Both borrowers are making that amount TOGETHER.
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MarkIFC
516 Posts |
Posted - 06/21/2008 : 3:31:28 PM
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quote:
Originally posted by jbelman
quote:
Originally posted by Hustler12
I'm pretty sure its 58k for each of them. If not, they shouldn't be buying a home in the SJ area.
Both borrowers are making that amount TOGETHER.
Man you are wasting your time with those buyers. THEY ARE NOT BUYERS! They are dreamers. |
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ML
2698 Posts |
Posted - 06/21/2008 : 3:40:49 PM
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quote:
Originally posted by jbelman
quote:
Originally posted by Hustler12
I'm pretty sure its 58k for each of them. If not, they shouldn't be buying a home in the SJ area.
Both borrowers are making that amount TOGETHER.
What were the first words your prospective buyers said to you when you met, "want fries with that order?" |
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slants
4261 Posts |
Posted - 06/21/2008 : 4:09:24 PM
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quote:
Originally posted by jbelman
quote:
Originally posted by Hustler12
Have you thought of finding them a 80% 1st and doing a 20% seller carryback?
Thats a possibility ... Email ASAP :)
How's that a possibility? You think an e-mail would fix this? Isn't calculating DTI the most minimum requirement for originating? Even a seller carry 2nd has a payment. As illustrated above:
$488,000 @ 6.5% Interest Only = $2,643.33
Property Taxes --------------- = $ 625.00
Hazard Insurance ------------- = $ 136.00
PITI ------------------------- = $3,404.00 / $4,800 income = 70.92% DTI (without the 2nd)
71% front end DTI without calculating payment from a 2nd = possibly 100% backend = they are way out of their price range.
$4,800/mo income @ 50% DTI = $2,400 PITI (assuming they don't have any consumer debts) which makes them eligible for a $300,000 mortgage, not $600,000.
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Lee3370
95 Posts |
Posted - 06/21/2008 : 4:55:32 PM
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| If this topic is serious and you are a loan originator, you dont need help selling your house, you need help finding a new profession. This is why we are all so hated and blamed for this mess. How does a couple making less than 5k monthly expect to buy a 600k house....hell they shouldnt be buying a 450k house. And you should be no part of the transaction, seller, buyer, realtor, LO...etc....move on and find a new buyer. |
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UPINARMS
112 Posts |
Posted - 06/21/2008 : 6:36:27 PM
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quote:
Originally posted by Lee3370
If this topic is serious and you are a loan originator, you dont need help selling your house, you need help finding a new profession. This is why we are all so hated and blamed for this mess. How does a couple making less than 5k monthly expect to buy a 600k house....hell they shouldnt be buying a 450k house. And you should be no part of the transaction, seller, buyer, realtor, LO...etc....move on and find a new buyer.
AHMEN... Wow who in there mind these dayhs would even bother with a 58k income buyer with a 610k price tag. You better do something creative *cough* illegal to get this one done. |
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djorge44
1337 Posts |
Posted - 06/21/2008 : 7:42:55 PM
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| I can help them buy a 150K house, not 600K |
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MaJa
124 Posts |
Posted - 06/21/2008 : 7:55:43 PM
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| This may not work out for these borrowers, but this may be a great CalHFA or FHA deal. For first time homebuyers, CalHFA goes up to $729,750 for resale property , and gross income cap of $127,320 for a 1-2 person household. They can also use CHAP for 2% downpayment assistance. there are other downpayment assistance programs approved with CalHFA, but i've found that their lower income limits preclude use of them. The borrowers would need about $10.2K in gross monthly income to qualify for a $620K purchase with zero debt. The 40 yr FRM seems to be the best program in terms of payment (rate is 7.125% right now, but amortized over 40 yrs it's a better monthly payment than the other programs they offer). FHA, of course, doesn't have the FTHB restriction, and the income qualification is approx. the same. |
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SolarMTG
317 Posts |
Posted - 06/21/2008 : 8:27:24 PM
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| just auction it off and see what you get. i dont think you are going to get your asking price when the market is flooded with REO's and short sales. if your value has not gone down yet, than that is good for you. i just dont see how anyone is going to buy at that price in today's market. people want a bargain and will go for the REO's and short sales. i know of companys that are only doing those type of purchases. that is where the market has shifted. private sales right now are almost non existant. look at the statistics and you can see that is true. who in their right mind would buy at full price when they can get another house for 50% off? im sure you could list the house on your own, but who knows how long it will take to sell. i can only imagine that you may have to end up dropping your price too. |
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AndrewSoss
356 Posts |
Posted - 06/21/2008 : 10:46:42 PM
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quote:
Originally posted by MaJa
This may not work out for these borrowers, but this may be a great CalHFA or FHA deal. For first time homebuyers, CalHFA goes up to $729,750 for resale property , and gross income cap of $127,320 for a 1-2 person household. They can also use CHAP for 2% downpayment assistance. there are other downpayment assistance programs approved with CalHFA, but i've found that their lower income limits preclude use of them. The borrowers would need about $10.2K in gross monthly income to qualify for a $620K purchase with zero debt. The 40 yr FRM seems to be the best program in terms of payment (rate is 7.125% right now, but amortized over 40 yrs it's a better monthly payment than the other programs they offer). FHA, of course, doesn't have the FTHB restriction, and the income qualification is approx. the same.
CalHFA goes to 55% DTI, no 43% like FHA
to the original poster, if you need help listing your home, let me know. I am a broker in Willow Glen. |
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MaJa
124 Posts |
Posted - 06/22/2008 : 07:26:03 AM
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| Andrew- you're right. i use a quick calc to see if borrower's are in the ball park for dti. that's why I qualify my statements with "about" and "approx." |
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jbelman
254 Posts |
Posted - 06/23/2008 : 12:08:25 PM
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quote:
Originally posted by CoolMtgGuy
Ever heard the term "combined income"? The combined annual income is only 58k, that is less than 5k/month and they want to buy a 600k house? As a mortgage originator yourself, would you be able to find a loan for these folks?
quote:
Originally posted by jbelman
quote:
Originally posted by Hustler12
I'm pretty sure its 58k for each of them. If not, they shouldn't be buying a home in the SJ area.
I can't find them a loan as a mortgage originator thats the beauty of broker outpost.. asking questions to find solutions.
Both borrowers are making that amount TOGETHER.
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jbelman
254 Posts |
Posted - 06/23/2008 : 12:10:35 PM
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quote:
Originally posted by Lee3370
If this topic is serious and you are a loan originator, you dont need help selling your house, you need help finding a new profession. This is why we are all so hated and blamed for this mess. How does a couple making less than 5k monthly expect to buy a 600k house....hell they shouldnt be buying a 450k house. And you should be no part of the transaction, seller, buyer, realtor, LO...etc....move on and find a new buyer.
With all due respect I came here for something I cannot solve and I know for a fact these guys dont qualify.. I threw the question to see if there are anyone who can throw me other ideas ..maybe another co borrower etc.. or maybe a carry back second.. I dont know ... .02 |
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jbelman
254 Posts |
Posted - 06/23/2008 : 12:11:58 PM
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quote:
Originally posted by SolarMTG
just auction it off and see what you get. i dont think you are going to get your asking price when the market is flooded with REO's and short sales. if your value has not gone down yet, than that is good for you. i just dont see how anyone is going to buy at that price in today's market. people want a bargain and will go for the REO's and short sales. i know of companys that are only doing those type of purchases. that is where the market has shifted. private sales right now are almost non existant. look at the statistics and you can see that is true. who in their right mind would buy at full price when they can get another house for 50% off? im sure you could list the house on your own, but who knows how long it will take to sell. i can only imagine that you may have to end up dropping your price too.
Hey Solar great points. Yes price actually is valued 650K on a recent appraisal. I've been cuting the price weekly ... Anyone who wants a property now at a discount let me know. ASAP |
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nj81501
9 Posts |
Posted - 06/23/2008 : 12:13:39 PM
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| From a Stand Point of Honesty.Doing the Right things. Is to Find New Buyers. |
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jbelman
254 Posts |
Posted - 06/23/2008 : 12:17:03 PM
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quote:
Originally posted by nj81501
From a Stand Point of Honesty.Doing the Right things. Is to Find New Buyers.
Yep.. I think so too. |
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ESCALVANTE
52 Posts |
Posted - 06/23/2008 : 12:25:02 PM
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quote:
Originally posted by jbelman
quote:
Originally posted by nj81501
From a Stand Point of Honesty.Doing the Right things. Is to Find New Buyers.
Yep.. I think so too.
Me three! |
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slants
4261 Posts |
Posted - 06/23/2008 : 5:13:21 PM
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quote:
Originally posted by jbelman
quote:
Originally posted by SolarMTG
just auction it off and see what you get. i dont think you are going to get your asking price when the market is flooded with REO's and short sales. if your value has not gone down yet, than that is good for you. i just dont see how anyone is going to buy at that price in today's market. people want a bargain and will go for the REO's and short sales. i know of companys that are only doing those type of purchases. that is where the market has shifted. private sales right now are almost non existant. look at the statistics and you can see that is true. who in their right mind would buy at full price when they can get another house for 50% off? im sure you could list the house on your own, but who knows how long it will take to sell. i can only imagine that you may have to end up dropping your price too.
Hey Solar great points. Yes price actually is valued 650K on a recent appraisal. I've been cuting the price weekly ... Anyone who wants a property now at a discount let me know. ASAP
The $650,000 "opinion" of appraisal value from a month ago derived from closed comps 2 - 3 months previous to that actually is not an accurate indication of what someone will pay for the house on the MLS today. The only way to gauge the price that will garner a quick sale in the current market is to determine the lowest price points on ACTIVE LISTINGS of similar homes in the area and slap it on the market even below that(not comps sold 3 months ago and entered into escrow 60 days prior to that). Those are the homes a prospective buyer will tour along with yours and unless yours is a better buy, you won't get the sale. You will typically be competing with REO and shortsale inventories and unless listed at the right price from the onset to get a contract the first week, chance of success is slim. To continually drop the price to play catch up to declining values is like trying to catch a falling knife. Those listings usually languish on the MLS until they expire. |
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Hustler12
1199 Posts |
Posted - 06/23/2008 : 5:21:09 PM
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| If both borrowers are making $58k they have no busines buying a home at that LTV. They are just setting themselves up for failure. |
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slants
4261 Posts |
Posted - 06/23/2008 : 5:24:46 PM
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quote:
Originally posted by jbelman
quote:
Originally posted by Lee3370
If this topic is serious and you are a loan originator, you dont need help selling your house, you need help finding a new profession. This is why we are all so hated and blamed for this mess. How does a couple making less than 5k monthly expect to buy a 600k house....hell they shouldnt be buying a 450k house. And you should be no part of the transaction, seller, buyer, realtor, LO...etc....move on and find a new buyer.
With all due respect I came here for something I cannot solve and I know for a fact these guys dont qualify.. I threw the question to see if there are anyone who can throw me other ideas ..maybe another co borrower etc.. or maybe a carry back second.. I dont know ... .02
If they have a co-borrower, then why are you asking? With all due respect, asking a question about how to qualify $58,000 combined income for a $600,000 purchase is not the sign of a competent professional (or ethical). It's like coming here to ask how do I put a square peg in a round hole? I know the saying is that there are no stupid questions, but there really are. |
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ss5547
250 Posts |
Posted - 06/23/2008 : 5:53:15 PM
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| Easy, have them create fake paycheck stubs and asset documents. Then have the underwriter create a phony LLC and pay that company a "Consultant" fee on the HUD. Think about it, with a little photo-shop and some kick backs, you'll do your part to ensure the foreclosure crisis continues at a rapid pace. Worst case, you get caught, do a little time and pay a fine. Once you get out of the clink, you can start rolling back odometers on Hondas or selling tsunami insurance to seniors. Win, win situation if you ask me. |
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