I recently completed the financing for a first time home-buyer that required an FHA Loan with a 3.50% down payment. However, due to the lack of housing inventory in today’s market, the buyer needed to make an aggressive offer for it to be accepted by the seller.
When the appraisal was completed, the appraised value was below the purchase price and the seller was unwilling to negotiate a reduced price.This meant the buyer would be forced to pay cash at closing to make up the difference between the purchase price and the amount of their loan.
I immediately appealed the value of the appraisal and was successful in obtaining an additional $5,000 in value for the buyer!
In addition, although I was competing against another “big bank” on the financing, we offered a lower interest rate on a 30-year fixed rate loan and a credit that covered over $7,500 in closing costs!
Ultimately the buyer was able to close escrow with only an additional 3.00% towards the down payment (on top of the 3.50% required for the loan). This is a perfect example of the benefits of an FHA Loan where the buyer may have limited cash for a down payment on their first home.
Working with a lender that understands the process of appealing for a higher value on an appraisal (if needed) is imperative. By offering low interest FHA Financing with a credit to cover closing costs, we helped a buyer with limited cash purchase a home, despite the challenges.
To learn how we can assist you secure your first home, contact:
Jack Reininga
(925) 626-4617
jreininga@pfgbayarea.com
http://pfgbayarea.com/jack-reininga
He brings 10 years of experience as a mortgage advisor and more than 20 years of experience in commercial and residential real estate in the San Francisco Bay Area. He holds a bachelors of science degree in economics from the University of Utah.
Reininga specializes in high-quality, fully documented conforming, jumbo, FHA and VA loans and has worked with experienced homeowners in both refinance and purchase transactions as well as serving first-time homebuyers.
“I don’t work inside a narrow box and we have a wide variety of loan programs to meet my customer’s needs at the most competitive rates in the industry. I also get to work alongside a team of highly experienced professionals from processing to underwriting…it’s great to be able to say that,” Reininga said.
To contact him, please call (925) 270-4738 or email jreininga@mmcdcorp.com.
Mason-McDuffie Mortgage is a privately held, mortgage banking firm headquartered in San Ramon. Its name dates to 1887 in the Bay Area real estate industry. For corporate information, please see www.mmcdcorp.com.
- Jack Reininga Joins Mason-McDuffie Mortgage Corporation - June 26, 2014
- Pacific Funding Group Streamlines Loans to Avoid Delays During Governmental Uncertainty - October 4, 2013
- FHA Back to Work: Extenuating Circumstances Program - September 20, 2013
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