Jump to content

  • Welcome!

    Register and log in easily with Twitter or Google accounts!

    Or simply create a new Huddle account. 

    Members receive fewer ads , access our dark theme, and the ability to join the discussion!

     

Financial Advice For A Friend

The Saltman

By The Saltman,
in Huddle Lounge

Recommended Posts

charlotte49er Newbie

charlotte49er

Posted
Posted

Speaking of home loans, I don't mean to hi-jack the thread, but here's what I ran into.

Trying to buy my Town Home. Asking price is $155,000, I can probably get it for $150,000. (Been on the market for almost a year.) Tax value is $150,600.

I have $105,000 + $2,500 Earnest Money + Pay closing costs CASH! (On top of that, I can almost pay cash outright in what I have in the bank, but would leave me with $0!)

Problem I have is, I have $0 in debt! I have spent 5 years living in this tiny, bug invested apartment to pay off all my debt. NO car loans, NO credit cards, NO school loans, $0! My only bills each month are to Duke Energy and Time Warner. Seems they only report to your credit if you go a few months and don't pay them. Pay on time, and they don't report sh*t! My Credit scores are 660+ and above!

I have gone to 3 places, Cunningham Mortgage, North Carolina Bank & Trust (my bank) and BofA and I can't get a home loan! They tell me that 3 months ago the banking laws changed as pertaining to home loans. You have to have 3 readily identifiable loans and be in good standing with all 3 in order to quality for a home loan.

Now, it seems you have to owe money to be able to borrow money! Thank you Pres. Obama! (At least I have some satisfaction in knowing I didn't vote for the f'tard!) I thought not owing anyone was a good thing! I have readily identifiable proof of income from the Federal Government that would very easily support a $40,000-$45,000 loan. Yet no one will do it!

Link to comment
Share on other sites
thefuzz Mentor

thefuzz

Posted
Posted

Speaking of home loans, I don't mean to hi-jack the thread, but here's what I ran into.

Trying to buy my Town Home. Asking price is $155,000, I can probably get it for $150,000. (Been on the market for almost a year.) Tax value is $150,600.

I have $105,000 + $2,500 Earnest Money + Pay closing costs CASH! (On top of that, I can almost pay cash outright in what I have in the bank, but would leave me with $0!)

Problem I have is, I have $0 in debt! I have spent 5 years living in this tiny, bug invested apartment to pay off all my debt. NO car loans, NO credit cards, NO school loans, $0! My only bills each month are to Duke Energy and Time Warner. Seems they only report to your credit if you go a few months and don't pay them. Pay on time, and they don't report sh*t! My Credit scores are 660+ and above!

I have gone to 3 places, Cunningham Mortgage, North Carolina Bank & Trust (my bank) and BofA and I can't get a home loan! They tell me that 3 months ago the banking laws changed as pertaining to home loans. You have to have 3 readily identifiable loans and be in good standing with all 3 in order to quality for a home loan.

Now, it seems you have to owe money to be able to borrow money! Thank you Pres. Obama! (At least I have some satisfaction in knowing I didn't vote for the f'tard!) I thought not owing anyone was a good thing! I have readily identifiable proof of income from the Federal Government that would very easily support a $40,000-$45,000 loan. Yet no one will do it!

See if the seller will finance the $40,000 if you pay the full $155,000, and write them a check for $115,000 cash.

Link to comment
Share on other sites
charlotte49er Newbie

charlotte49er

Posted
Posted

See if the seller will finance the $40,000 if you pay the full $155,000, and write them a check for $115,000 cash.

That's what we proposed. I'd rather owe the bank than the seller. How does he report to the credit companies so I get credit established? In a year or 2, I want to be able to go get a loan and pay him off.

My agent and I are waiting to hear back from him and his agent. He was gone over the 4th weekend.

Either way, I'm pretty sure I will end up with the home.

Link to comment
Share on other sites
dimbee Newbie

dimbee

Posted
Posted

Speaking of home loans, I don't mean to hi-jack the thread, but here's what I ran into.

Trying to buy my Town Home. Asking price is $155,000, I can probably get it for $150,000. (Been on the market for almost a year.) Tax value is $150,600.

I have $105,000 + $2,500 Earnest Money + Pay closing costs CASH! (On top of that, I can almost pay cash outright in what I have in the bank, but would leave me with $0!)

Problem I have is, I have $0 in debt! I have spent 5 years living in this tiny, bug invested apartment to pay off all my debt. NO car loans, NO credit cards, NO school loans, $0! My only bills each month are to Duke Energy and Time Warner. Seems they only report to your credit if you go a few months and don't pay them. Pay on time, and they don't report sh*t! My Credit scores are 660+ and above!

I have gone to 3 places, Cunningham Mortgage, North Carolina Bank & Trust (my bank) and BofA and I can't get a home loan! They tell me that 3 months ago the banking laws changed as pertaining to home loans. You have to have 3 readily identifiable loans and be in good standing with all 3 in order to quality for a home loan.

Now, it seems you have to owe money to be able to borrow money! Thank you Pres. Obama! (At least I have some satisfaction in knowing I didn't vote for the f'tard!) I thought not owing anyone was a good thing! I have readily identifiable proof of income from the Federal Government that would very easily support a $40,000-$45,000 loan. Yet no one will do it!

Many banks/lenders do require prospective borrowers to have established trade lines. That's nothing new. There have been no changes in banking laws in the last 3 months that have anything to do with minimum # of trade lines. So, it has absolutely nothing to do with President Obama.

What you're running up against is your requested loan amount. I'm unaware of any lenders that will lend $40,000 on a purchase mortgage. They will lend on $60,000.00 though. Finance $60,000 then dump $20,000 into the loan (if you wish to).... I'm positive their stories will change for a $60,000 loan amount... if those banks won't, others will.

Good luck!

Link to comment
Share on other sites
charlotte49er Newbie

charlotte49er

Posted
Posted

Many banks/lenders do require prospective borrowers to have established trade lines. That's nothing new. There have been no changes in banking laws in the last 3 months that have anything to do with minimum # of trade lines. So, it has absolutely nothing to do with President Obama.

What you're running up against is your requested loan amount. I'm unaware of any lenders that will lend $40,000 on a purchase mortgage. They will lend on $60,000.00 though. Finance $60,000 then dump $20,000 into the loan (if you wish to).... I'm positive their stories will change for a $60,000 loan amount... if those banks won't, others will.

Good luck!

Cunningham said that $50,000 was the minimum they would lend.

I said, "Fine, I can handle that."

When they ran my credit score it came back as "0". They said Lending Credit score is different from Consumer Credit score. When I pull my credit score, I'm looking at the Consumer Credit number, not the Lending number.

NCB & T said the same thing. That because I don't owe anyone, I have no Lending Credit score.

I talked with a lender at BofA and she was the one that said I needed to have 3 identifiable outstanding loans and be up to date on them. (She also was the one that said the there banking rules changed 3 months ago. She said prior to April, they could have easily loaned me the money. Just going by what she said. Maybe these are internal to BofA?)

I know this is too simple, but they are financing a $150,000 home and have $40,000-$50,000 in it. God Forbid, I would fail to make payments, then they could dump the home for $100,000 and still double their money! (I know, this is too simple for them to understand.) That's why the Seller will probably finance it, for a while at least.

If I had about $5,000-$7,000 more in the bank, I'd just buy it outright, and then see about getting a home equity loan for any emergency. (Provided, I could get one of them!)

If I was unscrupulous, I would propose to him, that he sell me the home for $140,000, (It would save him in taxes and Agent fees), have him finance the closing, then I would come back, get a home equity loan and pay him $10,000-$15,000 for his trouble, Tax Free! (There's a word for that though. FRAUD or COLLUSION! Take your pick. )

Link to comment
Share on other sites
Jase Rookie

Jase

Posted
Posted

There's nothing in RESPA that forbids a seller from giving you what is called a "gift of equity." If the seller agrees that you'll pay it back is also not illegal.

But the IRS will make the seller pay a hefty tax on that gift of equity if I'm not mistaken...

Link to comment
Share on other sites
dimbee Newbie

dimbee

Posted
Posted

When they ran my credit score it came back as "0". They said Lending Credit score is different from Consumer Credit score. When I pull my credit score, I'm looking at the Consumer Credit number, not the Lending number.

NCB & T said the same thing. That because I don't owe anyone, I have no Lending Credit score.

Well, that's a different case altogether, unfortunately. Sorry to hear that, bro.

(She also was the one that said the there banking rules changed 3 months ago. She said prior to April, they could have easily loaned me the money. Just going by what she said. Maybe these are internal to BofA?)

That's definitely the case.

Link to comment
Share on other sites
dimbee Newbie

dimbee

Posted
Posted

But the IRS will make the seller pay a hefty tax on that gift of equity if I'm not mistaken...

I have no idea. I'm not a tax guy. I haven't ever heard of it being taxed. Seller concessions happen all of the time.

Link to comment
Share on other sites

Archived

This topic is now archived and is closed to further replies.

Go to topic listing
×
×
  • Create New...