Profile picture for peg57

want to make an offer on a homepath home, to live in, needs some work, they are asking 170k,

if I offer 155k but want 15k in the rennovation budget does the lender give you cash to renovate or send contractors to do the work? or do they even look at lower than list offers?
  • August 12 2012 - Sacramento
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Answers (5)

Your offer on the property will always be countered. Very often offers of 20% will be countered @ 15%. Example A 100K listing that has a 80K offer will be countered at 85K.  All 203K streamlined mortgages (30K and under) will require nothing more then Closing, having work completed and getting your inspection by the issuing bank. just remember, if you accept a FHA loan you will be paying a huge nut in the form of Mortgage insurance. Up to as much as 100 basis points on the mortgage, Example: a 700K mortgage will run you 700 bucks per month. For this reason, consult with a Mortgage broker. Do not go to a bank for your mortgage! Go see a broker!  If you can snag the house for 20%  discount to ask, and you are putting that 20% back into the house, you are still paying market value.
  • September 11 2012
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Profile picture for HessRealty
Homepath properties typically have had multiple BPO's (Broker Price Opinions) and typically an appraisal as well.  What that means is that they are priced to sell.  However, every market being different and every asset manager these properties are assigned to is different.  That said, you may be able to get some off the asking price, but don't expect much.  These guys have already taken massive losses on these assets and they don't care what you think they are worth.  They know what they will sell for and if they have to wait 6 months to do so they will.  They have nothing to lose as their business model is being supported by our tax dollars.

You are better off trying to get all your closing costs covered and maybe some off list price, but in my market they are selling for list if not higher.  Also, don't expect them to do any repairs unless the loan requires them to do so.  You are buying these properties as is which means with all faults.

Regarding your question about lender giving cash to renovate, throw that idea out the window.  This scenario is very tightly regulated to receive cash to do renovations if you are using a loan.  They consider this a type of mortgage fraud.  It has to be in an escrow account with stipulations addressing what amounts are going where.  It is a lot of headache and they are not going to deal with this hassle.  A 203k loan gives you more freedom and funding for repairs is held in escrow by the lender.
  • September 11 2012
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Profile picture for user8182064
hi,
Would you be able to update me on what happened. I also see a homepath property that i like but it is overpriced as well. thx
  • September 11 2012
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Profile picture for peg57

I think the house is available, I do have an agent, sunday night, I will get the letter tomorrow.  I just know that the hvac is old, the fence is old, the roof may need repair, I thought the homepath renovation loan would cover up to 35K of renovation, ie repair.  if it is also greatly overpriced. then I plan to offer 20K less than asking to compensate for this.

I have no experience with a homepath rennovation mortgage.

  • August 12 2012
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First you have to find out if the home is available. Second, you will need a prequal letter. If the property needs work, then you'll probably want to get a 203K loan. Do you have a real estate agent?
  • August 12 2012
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