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Make Sure Your Lender, Agent and You Think The Contract Through

By Thesa Chambers

Real Estate Agent with West + Main

October 03, 2008 03:37 PM

More than once in recent weeks I have heard of a disappointed buyer.

Although our buyers are far and few between there are some great loan programs still available. One of them is the ODVA loan (Oregon Veterans Loan).

This program allows for almost 100% financing for the Oregon Veteran - Great News uh?

Well, maybe... you see these buyers get qualified, they shop, they find the perfect home then the problem arises.

Although the program allows close to 100% financing it still requires mortgage insurance. The mortgage insurance companies are not fond insuring the 100% or the pruchase price - and so there goes the almost 100% financing.

Now before I get hate mail - I know there are exceptions to every rule, and every situation is different. My point is not to tell you it is not possible - it is to say, all parties need to evaluate where things are and what is possible.

Be prepared to need to have at least 5% down the same can happen with an FHA with the 3% (going to 3.5% the first of the year) down payment an FHA loan requires. If you, the buyer comes to the transaction prepared you will not be disappointed.

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Elizabeth Nieves

The Elizabeth Nieves Realty Group - Durham, NC

Bilingual Raleigh - Durham North Carolina Real Estate Team

The biggest problem I'm seeing deal after deal is the appraisal. Everything goes along smoothly until the appraisal. YIKES! There aren't too many 100% deals left. This sounds like a great one. GBU!

Oct 03, 2008 05:53 PM

Kris Wales

Keller Williams Realty - Lakeside Market Center - Macomb, MI

Real Estate Blog & Homes for Sale search site, Macomb County MI

Catch 22. Yes, we have the program. No, we can't use it. Goodness Thesa...how horrible for those buyers.

Oct 04, 2008 01:16 AM

Neal Bloom

Brokered by eXp Realty LLC - Weston, FL

Realtor CRS-Weston FL Real Estate

Thesa,

I wouldn't take any promises.

I don't get it? 100% financing but you can't get it without insurance or you can? If you have to get it and you can't get it then how do you get it? You've been zapped by the hidden mod...let's see what happens:)

Oct 04, 2008 02:00 AM

Jason & Amber Gardner

Hasson Company, Realtors - Sherwood, OR

We're Committed to Your Success!

I really appreciate the value and positive guidance provided to the market. I think the more this is provided the better we'll help to make our markets. YES there are good buyer programs out there, you just have to be more prepared and get pre-qualified. The game hasn't changed in that respect. The buyers that are listening to us are the ones moving into their new homes.

Oct 06, 2008 05:15 AM

Sarah Eubanks

Hill Valley Financial Services - Oregon City, OR

Preferred Oregon Loan Consultant & Notary Public

Hi Thesa...You are so right. The ODVA program is a terrific one. That being said, I think that to advise your clients that 100% financing is not an option is your best option as a Realtor. I think that it is better to over serve and under promise. If you can give that to them later as an option, it will go well! :-) Thank you...

Oct 10, 2008 06:08 AM

Make Sure Your Lender, Agent and You Think The Contract Through

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