"Hi Audrey, I am calling to register an offer on your listing. GREAT, I say. Let's get together as soon as possible to work out the details."
When the offer comes in, I go over it with my sellers. Always in a postive non-judgemental presentation, but this one befuddled me a bit.
It was for $700,000 and 6% towards closing costs and down payment assistance. I know FHA goes up to $729,000 now, but I guess I would figure in that price range a buyer might have some cash saved up? Please don't get me wrong, I don't care how you slice it or dice it if that works for the buyer and they can handle the payment, then by all means, but for someone with no cash reserves, that seems like an awfully big house payment?
I have done a jumbo FHA this year for $560,000, with a closing cost credit, but not DPA. It was a VERY difficult loan to do with a strong lender. Seems like everyone, FHA is more conservative than before.
My seller is actually the one that didn't like this scenario. He sort of said isn't this the same thing, just a different tune of some of our troubles we are currently experiencing? The offer did not get ratified for a couple of other reasons, but what are your thoughts, and have you had one of these deals at this price range?
Lenders, what are your experiences with this?