FalulahBaker's Profile
Author's Posts
August 1, 2009
SONYMA loans ?
I'm in contract for an existing condo and despite having been pre-approved, having perfect credit and no debt, I can't seem to get 90% financing. It seems to be an issue with PMI.
I've been told by a rep at Bank of AMerica that they might be able to put me in a SONYMA loan, and after checking it out, it seems like a really good product, but I'm worried about the inevitable headaches of going through the state. Does anyone have any experience with these loans ?
Author's Comments
Just wanted to add, before you begin your search you'll want to get "pre-qualified" from a bank or mortgage broker. It doesn't cost you anything, so why not make a few calls and get a professional opinion ? You'll have a better idea as far as how much you'll be able to borrow, then you can really determine your price range accurately. Additionally, RE agents will be more inclined to help you once you have the pre-qual.
Posted by: FalulahBaker at September 17, 2009 11:07 PM in response to First-time Home Buyer
How do you know for sure that the second broker is telling you the truth ? Or that the first broker is telling you the truth when he swears he can get the job done ?
I'm going through something similar myself and am beginning to form the pessimistic opinion that everybody lies about everything all the time. You just have to do the best you can- mortgage rate fluctuate several times a day, so its really like shooting a moving target.
Posted by: FalulahBaker at September 17, 2009 10:56 PM in response to Choosing Broker
There is a state program for first time homebuyers called SONYMA, and unlike FHA loans, the building doesn't have to be "approved" or whatever. If you qualify, you can get either a 30 or 40 year fixed mortgage with 3, 5, or 10% down. Your income might be too high though.
I'm in the process of trying to close a deal with one of these loans after I was unable to get a normal mortgage with 10% down.
Posted by: FalulahBaker at September 17, 2009 10:47 PM in response to First-time Home Buyer
FalulahBaker wrote a review about Bliss on August 26, 2009 9:55 PM
I went here once and thought the food was OK, and I rather liked the simple environment.
The server, however, was so downright nasty that a year later I still feel compelled to take the opportunity to slam it. No plans to return.
brooklyncurious, congratulations !
I was wondering if you would share what bank you used, and the name of your contact there.
I have been in contract since mid-june, and have been unable to get financing for my 10% down deal. This is despite having an 800 credit score, no debt, and the monthly payments are less than 30% of my gross income. I've been told its impossible to get pmi and that my only option might be a SONYMA loan. I might lose the place...
Posted by: FalulahBaker at July 31, 2009 6:13 PM in response to Still Hard to Obtain PMI?
brooklyncurious, congratulations !
I was wondering if you would share what bank you used, and the name of your contact there.
I have been in contract since mid-june, and have been unable to get financing for my 10% down deal. This is despite having an 800 credit score, no debt, and the monthly payments are less than 30% of my gross income. I've been told its impossible to get pmi and that my only option might be a SONYMA loan. I might lose the place...
Posted by: FalulahBaker at July 31, 2009 6:12 PM in response to Still Hard to Obtain PMI?
Responses to Author's Forum Comments
Forget it, denton.
Posted by: daveinbedstuy at September 18, 2009 8:27 AM in response to Choosing Broker
Thanks all. Denton, I hear you. Nothing like being left hung out to dry at the last minute. The strange thing is rates seems to differ to such a large extent between brokers. Of course, locking in a lower rate appears up front to be a great thing, but there is no guarantee that they will find a bank to loan to that particular building.
GL Fb!
Posted by: kissiffer4 at September 18, 2009 8:55 AM in response to Choosing Broker
The rate isn't "locked in" until the bank locks it in with a commitment. The broker can't "lock it in."
Posted by: daveinbedstuy at September 18, 2009 9:09 AM in response to Choosing Broker
I'd call the bank(s) directly. Skip the broker altogether.
Posted by: henrycurtis at September 18, 2009 9:43 AM in response to Choosing Broker
Dave, thanks for that info. I wasn't aware of that. To be fair to the first broker that I have been dealing with, who quoted 5.375, he did say that with rates where they are now the 5.125 rate was very unlikely. The second guy who quoted 5.125 keeps saying 5.125 can be 'locked in today!'.
Henry, thought about going to the bank directly, but it is a difficult unit (i.e self-managed, no cash reserves, 3 unit condo), so going through a single source is a little bit risky for me. Thanks though!
(Also, first time buyer and will probably look back in 5 years and wonder what the hell I was thinking :)
Posted by: kissiffer4 at September 18, 2009 10:21 AM in response to Choosing Broker
Bottom line though, these rates are very low in both absolute terms and historically. Very, very low.
Posted by: daveinbedstuy at September 18, 2009 11:38 AM in response to Choosing Broker
1) You may already be locked in, depending on what you've signed. 2)Likely you won't get the new bank to underwrite within 30 days, so you could be left with no financing, as you would have to tell your original broker you've decided not to finance through him (otherwise you risk having both loans fall through due to the appearance that you are trying to take out two mortgages on the same property). 3) Interest rates move, so comparing quotes at different points in time is not comparing apples to apples. 4) Your new broker, assuming you've told him that you've already locked in a rate, is by definition a scumbag for trying to sell you a new loan at this point. You want to think twice before trusting him.
So, you have to ask yourself, is $86.88 per month worth the bad karma? You could easily make up the difference over the life of the loan by simply pre-paying a small amount of principal every year.
Posted by: wyckoff at September 18, 2009 12:36 PM in response to Choosing Broker
Hi wyckoff, thanks for the comment. Currently, we are not locked in, but the figures I am going by are the ones provided on the GFE (which I got from each broker on the same day). It just seemed odd that my first broker was insistent on 5.375 whilst the second guy assured me he could do 5.125. Now, the difference between the two is I have gone through the credit application with the first broker who is funding this internally (and they are selling the loan to the bank later...or something along those lines). I think that is why he assured me this could get done.
Going with the second broker would certainly be introducing a bit of uncertainty into the mix in terms of going to a different bank.
Well, I don't like to nickel and dime people and you are right about the $80 or so. It isn't life or death so sticking with the original broker might be the best way to go.
Thanks again for your input.
Posted by: kissiffer4 at September 18, 2009 12:51 PM in response to Choosing Broker
You could always buy down the points to get to 5.125 from 5.375. If you have a sellers concession, you cannot leave any of those funds on the table once you close. Actual closing costs are around 4% even though everyone says 6%. That will likely leave you with enough money to buy your rate down to what the other guy says - he has not collected supporting documentation or run your credit and is probably saying whatever he can to get your business. With a tricky situation like what you are buying into, it seems like you are splitting hairs and may risk losing the condo and perhaps your DP over this.
Posted by: bedstuytownhouse at September 18, 2009 1:31 PM in response to Choosing Broker
Get pre-approved for an FHA loan. The minimum DP is 3.5% and they allow up to a 6% sellers concession which will cover your closing costs. Minimum MIDDLE credit score is 620. When you are ready to start looking, you must tell your agent because a lot of condo buildings have minimum DP requirements of 10% and you don't want to waste their time or yours.
Good luck.
Posted by: bedstuytownhouse at September 18, 2009 1:39 PM in response to First-time Home Buyer
When I made on offer on my condo, I used Property Shark and Zillow to see recent sales prices in the immediate area, then I figured out an average price range per square foot. If the condition is really bad, you might feel that your unit belongs in the lower part of this range. Then, offer a little less to give yourself room to negotiate. You can always increase your offer if its rejected.
You don't want to pay too much !!! Even if you enjoy throwing your money away, the bank will not approve your mortgage if the condo appraises for less than the sales price.
Posted by: FalulahBaker at October 13, 2009 8:05 PM in response to Offer Advice for 1st Timer