All Encompassing Mortgage and Real Estate Thread

[Wulaw Horn 19069]

I say that because while rates could bounce back down a little bit they have way more downside risk to go up than benefit You’d receive if they inch down a little bit. 

[UTPhil2006 3807]

Yeah I was just trying to give a basic barometer. Every deal is unique. Jumbos still holding pretty at 3.6-3.7 so yeah just truly depends on variables of the deal. 

[4HE 156]

Hate to even ask, but we are about to begin  the new construction process. Based on my preliminary reading it appears that the best route is to do the 1 closing process so we can lock the rate in earlier?
surly humblebrag alert: it will be a jumbo loan. 
 

thoughts?

Edited January 10, 2021 by 4HE
Spelling

[Gil Bang 25943]

6 hours ago, 4HE said:

Hate to even ask, but we are about to begin  the new construction process. Based on my preliminary reading it appears that the best route is to do the 1 closing process so we can lock the rate in earlier?
surly humblebrag alert: it will be a jumbo loan. 
 

thoughts?

so, you should talk to all the best divorce lawyers in your town, so when you're wife calls them they can't represent her because they have a pre-existing relationship with you.

[Sbbruin 21841]

6 hours ago, 4HE said:

Hate to even ask, but we are about to begin  the new construction process. Based on my preliminary reading it appears that the best route is to do the 1 closing process so we can lock the rate in earlier?
surly humblebrag alert: it will be a jumbo loan. 
 

thoughts?

True surly humblebragging wouldn’t be talking loans at all.  Straight cash homie!

[tokamak 6411]

@UTPhil2006 what kind of rates are you seeing today on a 30yr? Just went under contract on a new house here in Houston. Quote from the broker my realtor gave me seemed a little on the high side.

[UTPhil2006 3807]

1 hour ago, tokamak said:

@UTPhil2006 what kind of rates are you seeing today on a 30yr? Just went under contract on a new house here in Houston. Quote from the broker my realtor gave me seemed a little on the high side.

Assuming solid credit, etc 2.5-2.625

[Gatorubet 30209]

Assuming solid credit, etc 2.5-2.625

Not solid credit, so just closed 30 year at 2.875.

Had a 5.5. Nice to get $ for new roof A/C & bathrooms and keep same monthly note.

[UTPhil2006 3807]

Still a phenomenal rate all things considered.

[Sbbruin 21841]

Hey @UTPhil2006, just went under contract on this.  Can you help me out on financing?

https://www.architecturaldigest.com/story/the-worlds-largest-and-priciest-home-is-ready-for-its-close-up?utm_source=facebook&utm_medium=social&utm_campaign=onsite-share&utm_brand=architectural-digest&utm_social-type=earned&fbclid=IwAR03VtdSJlEyKbLFU-bViYf0cB3U2gFnmtDUNxCtMuBPW9WGooOhF40TGGc

Sincerely, 

Surly 0.00000000000000001%er

[UTPhil2006 3807]

15 minutes ago, Sbbruin said:

Hey @UTPhil2006, just went under contract on this.  Can you help me out on financing?

https://www.architecturaldigest.com/story/the-worlds-largest-and-priciest-home-is-ready-for-its-close-up?utm_source=facebook&utm_medium=social&utm_campaign=onsite-share&utm_brand=architectural-digest&utm_social-type=earned&fbclid=IwAR03VtdSJlEyKbLFU-bViYf0cB3U2gFnmtDUNxCtMuBPW9WGooOhF40TGGc

Sincerely, 

Surly 0.00000000000000001%er

Yep.  I'd also like to  be the Realtor and make 3% as well.

[Hefeweizen 5311]

Phil - are jumbos still above 3.5?  I figure the era of cheap money will eventually end and I hate to refi again but I plan to stay in my house a long time so it may make sense.

[Upgrayedd 5810]

7 hours ago, Sbbruin said:

Hey @UTPhil2006, just went under contract on this.  Can you help me out on financing?

https://www.architecturaldigest.com/story/the-worlds-largest-and-priciest-home-is-ready-for-its-close-up?utm_source=facebook&utm_medium=social&utm_campaign=onsite-share&utm_brand=architectural-digest&utm_social-type=earned&fbclid=IwAR03VtdSJlEyKbLFU-bViYf0cB3U2gFnmtDUNxCtMuBPW9WGooOhF40TGGc

Sincerely, 

Surly 0.00000000000000001%er

Seem pricey for a scrape 

[UTPhil2006 3807]

On 1/15/2021 at 5:21 PM, Hefeweizen said:

Phil - are jumbos still above 3.5?  I figure the era of cheap money will eventually end and I hate to refi again but I plan to stay in my house a long time so it may make sense.

They're hanging around that number, since they don't really react to the market as much as the conventional loans.  One thing we're waiting on UWM (our main lender) to bring back is the "High Balance Conventional" product which should get us a bit lower than jumbo rates (as long as the current rate environment holds) which that program goes up to 770k or so up from the standard conventional loan limit of 548,250.  They're hoping to get it rolled back out Q1 so I'm staying on top of our AE about when it rolls back out.

[LCHorn 2616]

On 1/15/2021 at 5:21 PM, Hefeweizen said:

Phil - are jumbos still above 3.5?  I figure the era of cheap money will eventually end and I hate to refi again but I plan to stay in my house a long time so it may make sense.

Above 3.5 for whom?  I’ve been locking most of mine in the 3.00%-3.125% range.  
 

I have noticed that Chase has really starting charging more (or maybe we’re on their shitlist).  They were my best priced option most of the summer with under 3.00% Jumbo pricing.  

[Catpfish 618]

We might be officially off the rails when it comes to market balance.  Put an offer in on a house for clients this weekend.  It went on the market on Friday morning and by Sunday afternoon had 78 offers.  People are offering 20% over asking and waiving the appraisal termination.  There is absolutely no supply on the market.  For example, after this weekend, the Pflugerville MLS area that had around 260-280 houses for sale usually, has a total of 9.  Unless you have a mountain of cash, you aren't touching a house for the near future that I can see.

[Armybrat 40832]

Austin predicted to be the nation’s hottest housing market again:

https://www.zillow.com/research/zillow-hottest-markets-2021-28667/

[UTPhil2006 3807]

Yep the Austin market for a seller is nuts and as a buyer is frustrating. 

[mchookem 16327]

just hang on one more year, that's all i want...🤞☺️

[UTPhil2006 3807]

20 hours ago, mchookem said:

just hang on one more year, that's all i want...🤞☺️

As long as rates don't go crazy (~4%) between now and then, it will be the same I suspect

[Wulaw Horn 19069]

So- new policy out of the administration I like (and not just b/c it helps me personally but that isn't bad obviously) Dreamers gonna be able to get FHA loans again. This was really heartbreaking for a couple of people I was working with that were damn near at the closing table when that got reversed a couple years ago. Love seeing this.  Sharing the American dream with those guys who have basically lived here their whole lives.  

[Dbeasy 15047]

On 1/4/2021 at 9:33 PM, UT_OB1 said:

Have a slum lord threatening to sue us for the EMD and termination option (x3 I guess if we go to court).  This is more venting / ranting than anything. 

My realtor did make some procedural mistakes, and I did in turn since I hired him.  3/2 with a detached garage with a garage apartment above it. 3-2 was vacant, but apartment occupied so we couldn’t see it until a contract was in place. 
 

The 3-2 wasn’t in bad shape.  It had been recently painted. It was just old and needed some cleaning and updating. Sellers disclosure said no issues anywhere, so we assumed apartment was probably in similar decent shape, especially since someone was living there. We put an offer in so we could take a look at the apartment.
 

After going back and forth with realtor a bit, we thought we had agreed on price/terms only to find out he hadn’t actually run it by seller. We were going to pay asking price on the house that had been listed for ~50 days to get seller financing at ~9% interest. Price went up 20k when realtor actually talked to seller.  That probably should have been a sign to move on, but we found rehab financing and put an offer back in that was accepted, and we scheduled an inspection. 
 

Here is where our mistake came in. My realtor put in a clause that we would get to walk apartment before putting escrow down (he’s not a lawyer, neither am I). After we walked the apartment and had them inspected , we were floored anyone was living in it. My realtor didn’t deposit option and earnest money and sent our contract cancellation and inspection report, along with a much lower figure if they still wanted to sell. I’ve used him a few times, first to find our own home, and he’s done that on other offers we’ve made and changed our mind once we got to see them (not deposit check when sending cancellation).  He says he’s done that process many other times.  Well, seller is saying that since we didn’t deposit earnest or option, and since my realtors comment about getting to walk property first wasn’t formatted correctly (probably need a lawyer for that comment) we skipped a step and don’t have the right to cancel contract. Since it has been 5 days, they say we owe them the money and they will sue for 3x if we don’t pay. 
 

I get we screwed up a step. And $1250 total wouldn’t bother me if there weren’t other issues dealing with seller (said power was turned on for inspection, but power was disconnected at panel) and if it didn’t feel like they flat out lied about the apartment. That thing is not safe for someone to be living in, and I can’t believe it was listed as no issues on the disclosure. The electrical panel was cobbled together by someone that wasn’t an electrician, and you could see where it was arcing inside box. They spliced extension cords run to the electric for some of the lights and fans. Sheetrock was missing. Quite a bit of the framing on the ground garage level was rotted from a leak from somewhere up above. The subfloor and joists was rotted and sinking (collapsing) under the bathroom because of poor toilet installation. The plumbing was “fixed” under the kitchen sink by duct taping pvc that had been placed inside old cast iron. From the bathroom, they hadn’t even bothered to try to seal the pvc / cast iron, they just dropped the pvc in the open end of the iron pipe, so the smells wafted up. And the garage foundation was cracked end to end with about a 4” gap at its widest. 
 

I was pretty unhappy we wasted our time with an inspection when they represented then place was in better shape than that. Just plain pissed off with threatening to sue. Again just ranting. I realize we probably made a procedural mistake and would fine paying it otherwise, but I just have a problem paying it to someone that has been a bit of an ass the whole way and it turns out they allow some seriously poor living conditions in their property. 

I’m a little unclear how that error in the statement about earnest money forces the buyer to have to perform to the contract. I don’t recall that in the contract form but I have to admit I’ve never looked closely at it. It also sounds like the seller knew exactly what they were doing and probably faked the fact that someone lived in the area you couldn’t see. 

[LebongJames 1801]

Wanna give another shout out to Thad, Danna and Phil. Was able to refinance into a conventional 30 at 2.59, new limits kept us out a jumbo. Unbelievably fast and easy. Technically close tomorrow so assuming no unforeseen circumstances.

Edited January 22, 2021 by LebongJames

[Orange Marrow 14]

I hope this is the right place to post this.

Can anyone recommend a lender for a one-time close VA construction loan?  Apparently lenders for these loans are something akin to unicorns.

I own the land where I intend to build, in Parker county on the west side of Fort Worth heading toward Aledo.  I've found my builder, now just need to find a lender.  I thought I was relatively proficient with internet searches, but the only place I found that definitely does these loans also runs AgRewards...eww.  

Thanks in advance.

[UTPhil2006 3807]

13 hours ago, Orange Marrow said:

I hope this is the right place to post this.

Can anyone recommend a lender for a one-time close VA construction loan?  Apparently lenders for these loans are something akin to unicorns.

I own the land where I intend to build, in Parker county on the west side of Fort Worth heading toward Aledo.  I've found my builder, now just need to find a lender.  I thought I was relatively proficient with internet searches, but the only place I found that definitely does these loans also runs AgRewards...eww.  

Thanks in advance.

Pretty sure we have a lender that does.  I just sent our AE an email, when he get's back with me I'll report back

[UTPhil2006 3807]

On 1/23/2021 at 9:34 PM, Orange Marrow said:

I hope this is the right place to post this.

Can anyone recommend a lender for a one-time close VA construction loan?  Apparently lenders for these loans are something akin to unicorns.

I own the land where I intend to build, in Parker county on the west side of Fort Worth heading toward Aledo.  I've found my builder, now just need to find a lender.  I thought I was relatively proficient with internet searches, but the only place I found that definitely does these loans also runs AgRewards...eww.  

Thanks in advance.

Still working on this. Is the AgRewards guy Jay Hurst?

[Wulaw Horn 19069]

4 hours ago, UTPhil2006 said:

Still working on this. Is the AgRewards guy Jay Hurst?

[Wulaw Horn 19069]

Messed that last up- I’m not in broker channel anymore Phil- but we had a group that used to do this- if you strike out let me know and I can look it up for you and pass along a contact if you are interested. It’s a niche of a niche product for sure. 

[UTPhil2006 3807]

Yeah I’m about 0/4 so far 

[Orange Marrow 14]

15 hours ago, UTPhil2006 said:

Still working on this. Is the AgRewards guy Jay Hurst?

Yep, that's the name I recall from my search.

[UTPhil2006 3807]

On 1/28/2021 at 9:09 AM, Orange Marrow said:

Yep, that's the name I recall from my search.

PM sent

[LABEVO 928]

Need to deploy about $500k for my parents. House would be a rental property. What area in or around Austin should they buy? I know the market is crazy so timing sucks..

[LCHorn 2616]

1 hour ago, LABEVO said:

Need to deploy about $500k for my parents. House would be a rental property. What area in or around Austin should they buy? I know the market is crazy so timing sucks..

Why buy in Austin at all?  What’s the goal with the money?  Nothing cash-flows here.  
 

I’d don’t tell this to investors that are realtor referrals but I favor San Antonio for someone that wants to buy in Texas or take that same money and invest in a builder.  
 

I’d also be looking for the next Fredericksburg.  Price per square foot there has doubled in the last 10 years. Maybe that’s something Roundtop adjacent or Port A or Lockhart.

[UTPhil2006 3807]

1 hour ago, LABEVO said:

Need to deploy about $500k for my parents. House would be a rental property. What area in or around Austin should they buy? I know the market is crazy so timing sucks..

PM sent 

[Gil Bang 25943]

3 hours ago, LABEVO said:

Need to deploy about $500k for my parents. House would be a rental property. What area in or around Austin should they buy? I know the market is crazy so timing sucks..

find yourself a sweet triple-net commercial deal, and sit back and collect checks. 

[LABEVO 928]

5 hours ago, LCHorn said:

Why buy in Austin at all?  What’s the goal with the money?  Nothing cash-flows here.  
 

I’d don’t tell this to investors that are realtor referrals but I favor San Antonio for someone that wants to buy in Texas or take that same money and invest in a builder.  
 

I’d also be looking for the next Fredericksburg.  Price per square foot there has doubled in the last 10 years. Maybe that’s something Roundtop adjacent or Port A or Lockhart.

1031 exchange. Not willing to take the risk / effort in markets that they don’t know or would have to manage from a distance. Just need to park the cash. Rental income is nice but main goal is just maintain value. 

Even the risk of managing a rental was a big effort to convince them rather than take the tax hit. They don’t need the money from the property sale so just want a property that is low low effort to manage and has some rental income. 

Edited January 31, 2021 by LABEVO

[Catpfish 618]

Just asking a theoretical question because I see both sides, but is taking the tax hit such a bad idea at this point?  There are rumors, strictly rumors at this point, that higher capital gains rates are being considered (the 20% rate is lower than the more "traditional" rates of 25-25%).  Also rumors of much decreased estate exemptions (possibly as low as $3.5 million down from roughly $11.5 million) and the repeal of the step-up basis (which would really hurt the long-term benefit of 1031 exchanges).  Now getting those passed might prove impossible, but you never know.  One thing that can be stated with reasonable certainty is that tax rates will go up in the future.  I know lots of people that have 1031'd millions of dollars of land that are now considering selling and taking the tax hit to avoid issues (possible) for future generations.  

 

[Assman 1830]

On 1/23/2021 at 9:34 PM, Orange Marrow said:

I hope this is the right place to post this.

Can anyone recommend a lender for a one-time close VA construction loan?  Apparently lenders for these loans are something akin to unicorns.

I own the land where I intend to build, in Parker county on the west side of Fort Worth heading toward Aledo.  I've found my builder, now just need to find a lender.  I thought I was relatively proficient with internet searches, but the only place I found that definitely does these loans also runs AgRewards...eww.  

Thanks in advance.

When you say one-time close, do you mean instead of the first construction loan then the refi when the house is complete?  If so, let me know what you find.  We're in the same boat and have been dealing with a buddy that does mortgages but he's out of state.  His company doesn't do construction loans, so we'd have to go with a local bank then refi with him when the home is near completion.  He explained that with a VA loan on new construction it's technically a cash-out refi which only covers 90% LTV.  Putting down 10% is not impossible, but we'd like to avoid it if all possible.  I was hoping we could do a one-time VA loan that incorporates it all and just closes like a normal VA loan, where I can put 0 down if I want.  This would be a jumbo with us having good income, $0 debt, and my wife and I both having credit scores over 800.

[LABEVO 928]

2 hours ago, Catpfish said:

Just asking a theoretical question because I see both sides, but is taking the tax hit such a bad idea at this point?  There are rumors, strictly rumors at this point, that higher capital gains rates are being considered (the 20% rate is lower than the more "traditional" rates of 25-25%).  Also rumors of much decreased estate exemptions (possibly as low as $3.5 million down from roughly $11.5 million) and the repeal of the step-up basis (which would really hurt the long-term benefit of 1031 exchanges).  Now getting those passed might prove impossible, but you never know.  One thing that can be stated with reasonable certainty is that tax rates will go up in the future.  I know lots of people that have 1031'd millions of dollars of land that are now considering selling and taking the tax hit to avoid issues (possible) for future generations.  

 

Yes as the purchase price of the original land was from the 1950s so we need tax basis to reset at my parents death. 

I rather take the step up risk at my parents death them now

Edited February 1, 2021 by LABEVO

[Gil Bang 25943]

3 hours ago, LABEVO said:

1031 exchange. Not willing to take the risk / effort in markets that they don’t know or would have to manage from a distance. Just need to park the cash. Rental income is nice but main goal is just maintain value. 

Even the risk of managing a rental was a big effort to convince them rather than take the tax hit. They don’t need the money from the property sale so just want a property that is low low effort to manage and has some rental income. 

Triple-net deal makes even more sense.  Management effort is zero. 

[LebongJames 1801]

Anyone get a letter from TCAD asking them to self disclosure the purchase price of their property?

My initial thought was to trash letter and tell them to go fuck themselves.

[hornian 5212]

58 minutes ago, LebongJames said:

Anyone get a letter from TCAD asking them to self disclosure the purchase price of their property?

My initial thought was to trash letter and tell them to go fuck themselves.

I got that. I filed it in the round file. 

[Wulaw Horn 19069]

59 minutes ago, LebongJames said:

Anyone get a letter from TCAD asking them to self disclosure the purchase price of their property?

My initial thought was to trash letter and tell them to go fuck themselves.

That’s the correct answer. 

[UT_OB1 2218]

1 hour ago, Wulaw Horn said:

That’s the correct answer. 

Fuck you is always a good answer, but is it the best?  When you disclose it, are you signing anything that says you can be prosecuted if they found out you’re lying?  If not, why not tell them something believable below what your current appraisal is?  Maybe knock 20% off?

[Wulaw Horn 19069]

9 hours ago, UT_OB1 said:

Fuck you is always a good answer, but is it the best?  When you disclose it, are you signing anything that says you can be prosecuted if they found out you’re lying?  If not, why not tell them something believable below what your current appraisal is?  Maybe knock 20% off?

I wouldn’t dot hate bc some county appraisal districts have back doors to CD’s and the like where you could get caught lying. I don’t think that’s prosecutable, but I wouldn’t want to get caught lying by the government. 

[UTPhil2006 3807]

10 hours ago, UT_OB1 said:

Fuck you is always a good answer, but is it the best?  When you disclose it, are you signing anything that says you can be prosecuted if they found out you’re lying?  If not, why not tell them something believable below what your current appraisal is?  Maybe knock 20% off?

Ignorance is bliss is the correct answer.  You can send in the correct answer, or you can file it in the customer complaint department..

[UTPhil2006 3807]

Just closed on this guy this past weekend..

 

Edited February 10, 2021 by UTPhil2006

[vtaenz 601]

He coming back to coach?

[UTPhil2006 3807]

59 minutes ago, vtaenz said:

He coming back to coach?

That's what I was hoping the whole time when we didnt have a DB coach or DC.  Alas, no such luck.

[SimonBolivar 10958]

The market is incredibly frustrating right now. We aren't even able to view houses before they're under contract on the same day for well above asking price. This is Waco by the way, not somewhere desirable.