What would you do?

[yveskleinsky]

We are moving to Vegas sometime in August. I have made a short list of homes I like, and would like to get out there sometime before mid June to see them in person and write up an offer with the intent of closing around the end of July.

My question is, we currently have 3 SFH, and we were planning on refinancing our primary (currently a VA) to a conventional with the intent of freeing up our VA to use out in Vegas.

About 80% of the inventory I'm coming across out there is bank owned. I spoke to a lender today who said that VA has tightened up and is a bitch to get bank owned properties through, due to all the regulations, and that VA is now requiring some sort of addendum which requires a statement of "market conditions" in the area, which I would imagine be hard to prove.

The house that I'm eying is $250k, with comps at $270k-$350k. I would like to offer $180k with no contingencies.

So what would you do in this situation?

- Move forward with a VA and submit offers to banks?

- Rustle up the cash, pay for the home outright and refi into a conventional? (Anyone have any pros and cons to doing this?)

- Keep our current primary as a VA and just finance the new home with a conventional loan?

I'm open to any ideas.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[rcardin]

your going to have to pay refi costs on the VA loan. Why not keep it VA and go conventional on the new place? If you can afford to pay cash you can afford to put a healthy down payment that would guarantee a quick closing.

 

[hatterasguy]

Since your offer is low and your trying to get a deal, here IMHO is the best way to do it, and probably the cheapest way for you.

Offer them cash, sellers love this.

Refi out into a conventional mortgage.

Thats what I would do.

 

[yveskleinsky]

your going to have to pay refi costs on the VA loan. Why not keep it VA and go conventional on the new place? If you can afford to pay cash you can afford to put a healthy down payment that would guarantee a quick closing.

The refi costs for the VA would be minimal as we aren't taking cash out, we are just wanting to lower the interest rate. ...As far as the cash down, we would want it back--I don't really want to put 20%+ down on something if I can borrow for it at 5% or less.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[yveskleinsky]

Since your offer is low and your trying to get a deal, here IMHO is the best way to do it, and probably the cheapest way for you.

Offer them cash, sellers love this.

Refi out into a conventional mortgage.

Thats what I would do.

Hatterasguy, do you think we'd have issues refinacing to a conventional after we pay all cash? That would be my main concern. Any ideas as far as questions to ask a lender to ensure that we don't get stuck holding the note?

 

[hatterasguy]

I'd be shocked if you had a problem. You might even be able to do a HELOC insted of a regular 30 at an even lower interest rate. I know people who are paying just over 3% on HELOC's now!

I'd talk to your lender or the bank.

 

[randallg99]

heck, if you're gonna be like any other californian or nevadian (sic?) then you get the mortgage and after 1 year, just negotiate it down 40%.... ;-)

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[wildambitions]

So what would you do in this situation?

Stay where you are, don't move... there are cooler :coolgleamA: people here! LMAO! :banana:

 

[yveskleinsky]

I'd be shocked if you had a problem. You might even be able to do a HELOC insted of a regular 30 at an even lower interest rate. I know people who are paying just over 3% on HELOC's now!

I'd talk to your lender or the bank.

Hatt,

JScott has a good point about maybe only being able to tap 70% of value.

So, for my clarity's sake, are you saying that if we made an offer to the bank for $180k on a home for $242k and offered to pay all cash and then instead of refinancing get a heloc? How would we be able to determine the true FMV of the home (according to the bank) before we bought it? ...Would we just write a contingency asking for an appraisal?

 

[hatterasguy]

I'm confused to.

You need to talk to your bank and see what options they are going to give you, also I don't know how much money you want to pull out. I personaly wouldn't have a problem with keeping 30% in the home, if the bank caps what they will lend to 70%.

If you don't need the money right away you could just get a HELOC for when you do, say you need $50k to secure a deal that comes along. On HELOC usualy you pay less interest.


Your in a bind since your out of the area and don't really know the market. The bank is going to do their own appraisal. Your probably going to have to pay for one of your own before it closes to see what its actualy worth. Flying out their for a few days to look at a bunch of stuff and get a feel for the market would probably be a good idea.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.