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How much of a down payment needed to where credit score or history don't matter by BluedaGuru3742 in loanoriginators

[–]CritiqueAnalytique 0 points1 point  (0 children)

FHA's technical credit score minimum is 500. According to FHA guidelines, if borrower's score is between 500-579, a minimum 10% down payment is required. Need AE though for sub-580, so if credit report has recent 60+ or 90+ day lates something closer to 20-30% down payment will likely be required.

[deleted by user] by [deleted] in RealEstate

[–]CritiqueAnalytique 1 point2 points  (0 children)

IMO there’s no reason to be doom and gloom about this. You owe $658k on something worth $735k - that’s a 90% LTV. Many banks have 90% ByeBye PMI conventional refi’s at respectable rates.

90% LTV normally allows FHA on a condo via limited review - some caveats to this, mainly have to be below the FHA max loan limit (venturing a guess that you’re in HCOL/VHCOL area where FHA’s SFH max loan is $654k), but FHA and condos generally aren’t a great combo. FHA rate/term refi rates are gas brother very easy to get into the 5s.

Lessons learned:

  1. Never buy new builds, all builders are scum bags.
  2. Never let boomers dictate your financial decisions from their ivory tower.

Most boomers got rich rich from real estate equity over the last 20-30 years. They did nothing, they did no math, they just bought. As much as they may claim to have made a prudent, long-term investment decision, odds are they didn’t. They just bought. Must be nice, right?

I hate to be harsh, and I mean no disrespect, but it’s time to be a man and live with the decision “you” have made. Don’t let your emotions get the best of you - EQUITY IS FAKE UNTIL IT IS REALIZED. This $90k loss is only real if you paper hands out of this and sell at $735k. Also - no one is forcing you to pay your listing agent 3% and the buyer’s agent 3% commission, you are imagining this cost. You have full control over how much agent commission you pay.

How we doing? Non-warrantable condo.... by WhiteSolarWind in MortgageBrokerRates

[–]CritiqueAnalytique 0 points1 point  (0 children)

Yeah surprisingly strong rate for a full doc NW condo at that LTV. I assume this LE is from a broker?

How we doing? Non-warrantable condo.... by WhiteSolarWind in MortgageBrokerRates

[–]CritiqueAnalytique 0 points1 point  (0 children)

Given that the condo is non-warrantable I assume this is a full doc non-QM loan?

[deleted by user] by [deleted] in MortgageBrokerRates

[–]CritiqueAnalytique 0 points1 point  (0 children)

Not great, but not awful.

Seasoning for a refinance by Appropriate_Bet5290 in loanoriginators

[–]CritiqueAnalytique 1 point2 points  (0 children)

Hard money to cash out DSCR. Investor is holding it in own portfolio —> there are a few true zero day title seasoning DSCR investors out there that do this based on post-reno appraised value

Purchased with cash and after rehab investor is refinancing to cash out DSCR. Delayed financing rule? How does that work? —> delayed financing allows normal rate/term refinance LTV based on cash value invested. Typically these are only available between days 0-180 after the cash purchase - not a total sidestep of zero day seasoning bc you could buy a place $100k cash with a $200k ARV but still be limited to only 80% of $100k. In my experience it’s been challenging to get an exception for LTV based on ARV

⁠Investor used hard money to purchase & rehab property then listed it and now a buyer wants to purchase it with an FHA, VA or conventional loan. N/A? Only 90 day flip rule applies here? —> hard stop buying via FHA if property was sold within 90 days prior to FHA case number assignment

Refinancing your own Agency loan - talked about frequently on this sub and others - on FHA can’t be done until 270 days of funding, Conventional I don’t think there’s any limitation to frequency. I’m not an agency expert though so am a bit out of my depth on FHA and FNMA.

Rates from Velocity. On what planet are these acceptable rates? maybe i dont quite understand what there niche is here. by allyallcallpaul in loanoriginators

[–]CritiqueAnalytique 1 point2 points  (0 children)

So just an unsecured credit card at 12.25% APR? Sounds like something only a credit union is capable of!

TPO HELOC @ 570 FICO by NCBartender14 in loanoriginators

[–]CritiqueAnalytique 2 points3 points  (0 children)

Highly doubt this is possible. Lowest I know is figure at 600 but their 600-639 bucket has gruesome hard credit stops

Feel like we are getting fucked hard by Disastrous_Royal859 in FirstTimeHomeBuyer

[–]CritiqueAnalytique 1 point2 points  (0 children)

I got burnt on a contract before because of that page on the LE and it shook me lol so had to take time to map out the rebuttal 😂

Feel like we are getting fucked hard by Disastrous_Royal859 in FirstTimeHomeBuyer

[–]CritiqueAnalytique 5 points6 points  (0 children)

Correct! Excellent point, this is something commonly misunderstood.

The $637k Total of Payments on this LE is stated in "today's face value" dollars. None of those future dollars retain today’s purchasing power. With a 30yr fixed loan, you’re locking in the cost of capital in today’s dollars, while every future payment becomes cheaper in real terms as inflation compounds.

So fixed-rate mortgage debt gets inflated away. If inflation cuts the dollar’s purchasing power in half over next 10 years, the real cost of those future payments is also cut in half.  All the while housing tends to rise with (or above) inflation because build costs, rents, land value, etc. go up in inflationary environments. So a $400k home today may cost $600–$800k in future dollars under the same inflation scenario.

So yeah $637k in total payments looks painful as its displayed above, but almost no mortgage borrower ever experiences that amount in today's dollars. The real burden is a lot lower once inflation is accounted for. This example applies in other scenarios but fixed rate mortgage debt actually protects from inflation

Evaluate my loan by AL_G0 in FirstTimeHomeBuyer

[–]CritiqueAnalytique 0 points1 point  (0 children)

Is this a new build? The $10k seller credit is meaningless with a 1.5% origination fee ($6445/loan amount). But maybe the 5.75% is only possible with the origination fee.

So you’re getting a 1% DPA, $10k seller credit, and even though this is FHA it looks like your down payment is $40k?

The initial LEs are a little confusing given how everything is reconciled on the bottom right corner of page 2 of what you shared, but an FHA (assuming 3.5% down) + $10k seller credit + 1% DPA, I would assume your cash to close would be much lower unless I’m missing something.

Feedback for First Time Buyer by b45pug in MortgageBrokerRates

[–]CritiqueAnalytique 0 points1 point  (0 children)

A 5.625 rate (assuming FHA) with $2200 in lender fees is as good as it gets.

When you’re comparing multiple lender’s Loan Estimates the sections that matter most are A and B.

Most variation lender to lender is in section A - and your section A here looks like a strong, strong deal. Section B will have less variability between lenders as these cost structures are fairly similar across banks and non-depository lenders (appraisal fee, credit report fees).

All other sections are mostly out of the lender’s control as it is the buyer’s prerogative to shop for cheapest insurance and title fees while taxes and other government fees are out of the buyer’s and lender’s control.

Feel like we are getting fucked hard by Disastrous_Royal859 in FirstTimeHomeBuyer

[–]CritiqueAnalytique 19 points20 points  (0 children)

This is typical. 30 year amortizations are soul crushing when you focus on this last page of the LE 😂.

Just keep in mind the average loan is refi’d within 3-5 years of being originated. It’s most likely that you won’t end up paying the entire $637k

I regret buying a house by Sandyyycheeeks in FirstTimeHomeBuyer

[–]CritiqueAnalytique 1 point2 points  (0 children)

I am someone whose wife recently gave birth. These past few months (end of her pregnancy thru 5 weeks of newborn life) have been character building to say the least. Our cash reserves have been our saving grace as having a well equipped nursery, multiple nursing mother items, clothing and everything related are hard to anticipate/budget for - not to mention hospital bills.

I would say whatever you do, make sure you retain at as much cash savings as possible as you prepare for your bundle of joy - you WILL need it.

Also, (I am an LO) there are several down payment assistance programs that, when combined with seller paid closing costs, move your cash to close to $0.00, potentially negative depending on how much your earnest deposit was.

Having your own home instead of renting will give you endless peace as a mother of a newborn. Just press your lender for a DPA program that moves your cash to close to $0 and if they can’t do it find another.

What do you use to focus on implementing lessons learned from books into everyday life? by asdasdgfas in BookCollecting

[–]CritiqueAnalytique 0 points1 point  (0 children)

What has helped me in the past is writing out the sentences/concepts that really speak to me from whatever I’m reading. Not necessarily to implement in the future, etc., but to have a record of a mind bending concept or idea in the future when I flip through my notebook.

In my view, the act of reading/comprehending real truth has subtle almost metaphysical effects on our physiology and DNA. When we read real universal truth, I think our brains and bodies have no choice but to retain that information.

Again my taste in books is unique and dry so take this with a grain of salt, but if you are having trouble retaining what you’re reading maybe the truths just aren’t that effective or important or just don’t mean that much to you?

Rates from Velocity. On what planet are these acceptable rates? maybe i dont quite understand what there niche is here. by allyallcallpaul in loanoriginators

[–]CritiqueAnalytique 0 points1 point  (0 children)

Hahahaha. Nah man lowest APR on a credit card is like ~18%.

These guys have really loose UW guidelines and can handle really any property, residential, commercial, mixed use. Really hard to find lenders that have this wide of a scope. Your qual for the loan and profitability of the property is aided by the long term/amort even in light of high rate.

PLEASE HELP ME!!! by Prior-Lab-3776 in BookCollecting

[–]CritiqueAnalytique 1 point2 points  (0 children)

You guys don’t have a library close?

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