“Bait and Switch is Alive”
Hello Joe, I'm thinking of making an offer on the three family that I looked at. As I shared with you previously I have been speaking with another lender. They were able to offer me a conventional loan at minimum 3% down. They quoted me an interest rate of 4% and the monthly mortgage insurance is $29 per month. Looks like a conventional loan would get me up to the front (since the outside of the house is chipped with lead and would fail FHA) The loan program you offered was FHA, is there anything you could do to make this conventional?
Unfortunately, this client is in for a rude awakening. The down payment of 3% is certainly fine, but the rate is not, based on his credit scores. The $29 for the monthly mortgage insurance is just crazy.
I recommended that he owed it to himself to see if he could accomplish the deal that they proposed, but if it doesn’t work out to communicate back with me.
“What would you have done?”