Im bowing out

Subsidized rates for people with bad credit. Sounds familiar.
Was looking at loans… so a person with really good credit probably also has more income and with todays housing market is probably looking at houses that require jumbo loans. Those have higher rates, so that might be one reason.
 
@SAJ-99 ok talk me off the ledge here just found the 8th Reddit thread about folks buying houses with zero down and no job and using the rental income from other properties as the source of funds. How is this not a house of cards.
Not going to get any help from me. That is a house of cards. I can see the rental income being accepted, but the zero down is tough to justify. I haven’t heard of FAnnie or Freddie buying these mortgages. Maybe some non-agency lenders repacking them at a higher rate? Will need to look into it.
 
Not going to get any help from me. That is a house of cards. I can see the rental income being accepted, but the zero down is tough to justify. I haven’t heard of FAnnie or Freddie buying these mortgages. Maybe some non-agency lenders repacking them at a higher rate? Will need to look into it.
I haven't heard of this either. Effectively someone is buying investment property at 100% LTV without verified/verifiable income? That seems awfully stupid on behalf of the lenders.
 
@ajricketts I can't remember but your a mortgage broker or underwriter yah?
Underwriter, although exclusively commercial/investment property, no primary residences.

I work with +/- 30 lenders (probably +/- 10-15 regularly) and haven't seen any of that nonsense. But my clients are credit unions and banks so the underwriting is pretty solid as a whole.
 
@SAJ-99 ok talk me off the ledge here just found the 8th Reddit thread about folks buying houses with zero down and no job and using the rental income from other properties as the source of funds. How is this not a house of cards.

Probably hard/private money lenders. Asset based lending with no credit checks.
 
I could sell my 1970's built, minimally updated house sitting on 0.10 acres in the Denver area and make enough off the sale to buy a 4000 square foot house on 20+ acres in the southeast. Bought this house 5 years ago and it has appreciated +90% since then. It's just stupid.
I sold my 1970 built home in 1976 in Adams County just below Thornton, CO for $29,000. Current owner has added a couple of small rooms and so out of curiosity I checked it's estimated value a few weeks ago....$465,000! Absolutely insane.
 
Underwriter, although exclusively commercial/investment property, no primary residences.

I work with +/- 30 lenders (probably +/- 10-15 regularly) and haven't seen any of that nonsense. But my clients are credit unions and banks so the underwriting is pretty solid as a whole.
👍 on the residential side of things or commercial for that matter. Do lenders see any elevated risk with everyone buying at the absolute top of there budget? I mean the bank has pre approved me for way more than I know I can afford which seems ridiculous. Just seems like being strapped every month to make that payment is like starting off with one foot in the grave and one on a banana peel? Payment like that and the slightest bump in the road could put those people under?
 
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@SAJ-99 ok talk me off the ledge here just found the 8th Reddit thread about folks buying houses with zero down and no job and using the rental income from other properties as the source of funds. How is this not a house of cards.
When I moved to SC in 2007 I was looking for a room to rent and met someone running an operation like this. His only question to me was “Do you smoke weed? I do.” He was also miffed about his TV no longer working after letting it get rained on. Perhaps he would have struggled with holding down a conventional job anyhow…
 
Another nice Lil setback in this market is that my VA loan is almost completely worthless, almost every seller we've looked at won't accept such a loan. Feels discriminatory at first, but I understand the reasoning. Doesn't make me feel any better about it, but I see why sellers are taking that route.
I sold my home to a VA loan buyer in 2016. They take longer to close, there is more paperwork, and a more stringent home inspection. I was required to fix numerous things the inspection found prior to close, and I had to use professional contractors rather than do the work myself. I was fine with making it work, and more than happy to help a veteran. However, in a seller’s market the VA loan is pretty toxic.

It behooves the VA to restructure their loan program to make it more competitive.
 
I sold my home to a VA loan buyer in 2016. They take longer to close, there is more paperwork, and a more stringent home inspection. I was required to fix numerous things the inspection found prior to close, and I had to use professional contractors rather than do the work myself. I was fine with making it work, and more than happy to help a veteran. However, in a seller’s market the VA loan is pretty toxic.

It behooves the VA to restructure their loan program to make it more competitive.
The idea that you would fix something identified seems absolutely absurd to me... welcome to buying houses as a millennial.
 
@ElkFever2 like how does that even work? In today's market... hell it will take you 6 months to get someone to come in, and if they have to order anything could be 18months. Small home repair is at the absolute bottom of the list for professionals. No one on either side of the deal is going to wait, any 'fix' requirement essentially ends a transaction.

The home inspection now is basically a useless perfunctory requirement.
 
I sold my home to a VA loan buyer in 2016. They take longer to close, there is more paperwork, and a more stringent home inspection. I was required to fix numerous things the inspection found prior to close, and I had to use professional contractors rather than do the work myself. I was fine with making it work, and more than happy to help a veteran. However, in a seller’s market the VA loan is pretty toxic.

It behooves the VA to restructure their loan program to make it more competitive.
Good man. I get why they do it, but yeah, they should revamp the process.
 
@ElkFever2 like how does that even work? In today's market... hell it will take you 6 months to get someone to come in, and if they have to order anything could be 18months. Small home repair is at the absolute bottom of the list for professionals. No one on either side of the deal is going to wait, any 'fix' requirement essentially ends a transaction.

The home inspection now is basically a useless perfunctory requirement.
In my case there was not a single thing broken. It was about a half dozen little things that were not to code. Mind you, not IA building code where the property was located, but the VA’s own standards. They did not like how certain things were constructed, and insisted they be rebuilt according to their specifications.
 
In my case there was not a single thing broken. It was about a half dozen little things that were not to code. Mind you, not IA building code where the property was located, but the VA’s own standards. They did not like how certain things were constructed, and insisted they be rebuilt according to their specifications.
Gotcha... yeah would appear to make a VA loan a poison pill today.
 
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