Let’s assume you’re right (and I think you are). So what?
There are alternatives to FHA. There is an FHA “lookalike” offered by FNMA (I forget the name of the program). But every major lender in the country offers it.
Then again, borrowers with good credit can do 100% financing.
Just get out there and do a deal. Your job is handle that particular deal, not tell them every little twist and turn their life may take over the next decade (assuming that you were farseeing enough to know).
Posted by KevinTX on October 26, 2000 at 24:33:33:
Heres the scenario (pronounced sen-are-e-o, not sen air-e-o) A seller wants to sell their house, thus the term “seller”. I offer to purchase “subject to” via PACTrust and they are perceptive to this. My concern is this, if the seller bought the house with FHA guarantee and the house is purchased subject to existing financing, dont they lose their FHA eligability until the deed is paid off? This is not good. It seems that if people use FHA once they’ll want to do it again. They may not know that they will not be eligable for another FHA loan in the future if they place their current property into a trust, but I would definately feel obligated to tell them beforehand and would even prefer to do so in writing to cover my buttocks. Maybe Im way off on this. How does FHA view properties placed into trust? Im sure alot of you have dealt with this, how was it handled?
By the way, I STILL havent done a single deal yet. I didnt help my cause any by not going to Gatten’s Dallas seminar. I thought (1st mistake) it would be over my head since Im a novice but after reading the posts on it, it appears I was wrong (nothing new). I wonder if Bill wouldnt mind doing another one at my house for me and Pudge(my dog, who is named after the greatest catcher in Major League history).
Anyway, back to the FHA thing. This isnt anything Im dealing with right now, but would have had to on 2 previous deals (both deals were lost, see paragraph 2)
Posted by Marty Weisberg on October 26, 2000 at 05:36:20:
Kevin,
Piper is right. Just be honest and don’t worry about every wrinkle. And yes he is also right that they cannot have 2 FHA loans at the same time so they would lose eligibility until the first is paid off.