All Encompassing Mortgage and Real Estate Thread

[Wulaw Horn 19,147]

5 minutes ago, UTPhil2006 said:

Yep take the valley and lock it if you got em

It’s not a valley, it’s the first small step down a steep mountain (he says, hopefully not truly expecting that to be the case). 

[Neonmoon 38,130]

5 hours ago, Wulaw Horn said:

It’s not a valley, it’s the first small step down a steep mountain (he says, hopefully not truly expecting that to be the case). 

The PCE numbers could come in hot tomorrow and set fire to your valley 

[Wulaw Horn 19,147]

1 hour ago, Neonmoon said:

The PCE numbers could come in hot tomorrow and set fire to your valley 

I am aware. 8.5 won’t look pretty to anyone will it? 

[UTPhil2006 3,809]

12 hours ago, Neonmoon said:

The PCE numbers could come in hot tomorrow and set fire to your valley 

Tiny little decrease (2 basis points 10 year) so far, granted it's only 9:05

[Neonmoon 38,130]

[StruggleBus 3,922]

How big of a pain in the ass is it get a jumbo loan if I'm a small business owner?

[Neonmoon 38,130]

24 minutes ago, StruggleBus said:

How big of a pain in the ass is it get a jumbo loan if I'm a small business owner?

Does your Schedule C line 31 have big numbers on it for 2 years?

 

edit - more thorough answer

Corporation	Provide the following documentation: Two (2) years personal tax returns, signed on or before the closing date. Two (2) years business returns (1120) signed if 25% or greater ownership. Business returns must reflect % of ownership for borrower. YTD profit and loss statement if 25% or greater ownership. YTD balance sheet if 25% or greater ownership.
Partnership / S-Corp	Provide the following documentation: Two (2) years personal tax returns, signed on or before the closing date. Two (2) years K-1s reflecting ownership percentage if counting any income from this source in qualifying (K-1 income, W-2 income, capital gains or interest/dividends) or if Schedule E reflects a loss. Two (2) years business tax returns (1065s or 1120s) signed if 25% or greater ownership. Business returns are not required if the income reporting is positive, not declining and not counted as qualifying income. YTD profit and loss statement if 25% or greater ownership. YTD balance sheet if 25% or greater ownership.
Sole Proprietorship	Provide the following documentation: Two (2) years personal tax returns, signed on or before the closing date. YTD profit and loss statement YTD balance sheet. Tax returns for prior year are not a substitute for balance sheet if most recent quarter falls in previous tax year.

Edited March 31, 2022 by Neonmoon

[Gil Bang 25,998]

17 minutes ago, StruggleBus said:

How big of a pain in the ass is it get a jumbo loan if I'm a small business owner?

What is the structure of the business?  Sole proprietor?   LLC?  S Corp? 

[StruggleBus 3,922]

1 hour ago, Gil Bang said:

What is the structure of the business?  Sole proprietor?   LLC?  S Corp? 

S corp. In 2021 we did extremely well. 2020 was just okay, mostly due to covid. 

Edited March 31, 2022 by StruggleBus

[Neonmoon 38,130]

4 minutes ago, StruggleBus said:

S corp. In 2021 we did extremely well. 2020 was just okay, mostly due to covid. 

Well.....if you've been in business for 5 years, do a conventional first and piggyback second. Only need 1 year of taxes for Freddie if been in business 5 years. Use the extremely good year 2021 to get a conventional and then piggyback the rest. 

Avoid using 2020

[Neonmoon 38,130]

MBS already down 22 bps

Cool

[UTPhil2006 3,809]

25 minutes ago, Neonmoon said:

MBS already down 22 bps

Cool

Another fantabulous Friday. 🤬

[Wulaw Horn 19,147]

MBS ended up down 9- nice rally. Good week overall- I think we are up 40 or so MBS for the week (up MBS is good). 
still hoping Monday at 4.93 on my loan sifter is a top on rates. We shall see. 

[jimmyjazz 46,093]

Let's talk design:  what do y'all think about this house?

I'll start:  it's butt ugly.

[FORTY NINE TO ZERO 2,652]

1 hour ago, jimmyjazz said:

Let's talk design:  what do y'all think about this house?

I'll start:  it's butt ugly.

horrible.  lake of trees and the massive driveway just makes it even worse. 

[Armybrat 40,873]

I don’t get the fascination with all stucco exteriors and barrel tile roofs. 
plus the rounded end side of the house is ugly.

Same for what was saide about the landscaping & driveway.

Overall, fugly.

[Armybrat 40,873]

Just now, Armybrat said:

I don’t get the fascination with all stucco exteriors and barrel tile roofs. 
plus the rounded end side of the house is ugly. Too many “turret” shapes.

Same for what was saide about the landscaping & driveway.

Overall, fugly.

 

[jimmyjazz 46,093]

To me it's a hack attempt to add classic design features FOR A FUCKING CASTLE into a large American house.  It's all disproportionate and silly.

[UT_OB1 2,224]

14 hours ago, Armybrat said:

I don’t get the fascination with all stucco exteriors and barrel tile roofs. 
plus the rounded end side of the house is ugly.

Same for what was saide about the landscaping & driveway.

Overall, fugly.

Don’t those style shingles last a hundred years or something ridiculous?

[Armybrat 40,873]

1 minute ago, UT_OB1 said:

Don’t those style shingles last a hundred years or something ridiculous?

Supposedly. But so do flat slate shingles.

[Armybrat 40,873]

My preference would be flat tile “shingles” because I think they are much more attractive than barrel tiles. Of course they are more expensive than the standard asphalt & fiberglass shingles and require a heavier roof truss structure for support.
 

 

[UTPhil2006 3,809]

Well we started Friday up 10 basis points on the 10 year.  Ended up clawing back 5 of those by time the market closed.  Well those 5 showed back up this morning.  1 step forward 3 steps back lately

[Muny_Tex 293]

Rate/Policy question:

So now that April 1st has come and gone, are the new FHFA rules/regs/fees for Second Homes now officially “in effect”?

If so, how are lenders relaying these costs? Is it just showing up in form of higher rates/increased LTV requirements, or is there actually a stand-alone “fee” that is being collected now?

If it’s just a rate deal, how much “worse” are 2nd home deals looking now when compared to a primary…given a baseline of $350k @ 20% down

Also, is everyone who applied/locked with signed purchase contracts prior to 4/1 all “safe” from these new changes (and associated fees?)…or is it based on the final closing date?


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[UTPhil2006 3,809]

Most priced it in Feb 1st.  CMG held out til about Feb 15, and then as of any new lock extensions of Mar 10 or so they added it in on the extension.  So everyone has it priced in now.  It's in the form of a rate increase.  You're looking at about a half point hit on rate compared to a primary residence.  So 5.5% instead of 5.0%.  If you locked before Feb 1st and extended it all the way to now and they didn't price in the extension (all highly unlikely) that would be the only way you would still have the old rates.

[Neonmoon 38,130]

1 hour ago, Muny_Tex said:

If it’s just a rate deal, how much “worse” are 2nd home deals looking now when compared to a primary…given a baseline of $350k @ 20% down
 

 

You're probably going to have to put down 25% and even pay a point

Edit: I was talking about a 15 year loan (sorry have a current loan in this situation so it was on my brain)

For a 30, you can do 10% down a second and not pay points, but you ain't getting 5.375% today

Edited April 4, 2022 by Neonmoon

[Muny_Tex 293]

^^^Thanks for the clarification gents.

Guess I should feel blessed to have secured 5.375% @ 10% down with no points…supposed to close 4/14 but still awaiting appraisal results so who knows.

I’m “only” borrowing $200k so the recent rate movement isn’t catastrophic, but good grief what a difference ~3 months can make

[Wulaw Horn 19,147]

1 hour ago, Muny_Tex said:

^^^Thanks for the clarification gents.

Guess I should feel blessed to have secured 5.375% @ 10% down with no points…supposed to close 4/14 but still awaiting appraisal results so who knows.

I’m “only” borrowing $200k so the recent rate movement isn’t catastrophic, but good grief what a difference ~3 months can make

Yeah- that’s a “good” deal now. Woof. At that rate the second home hit was definitely already factored in. 

[Muny_Tex 293]

…supposed to close 4/14 but still awaiting appraisal results so who knows.

CSB here since I know appraisals have been a massive headache in CenTex recently:

—Submitted appraisal request on Tue 3/29 (for condo property in New Orleans)

—Request picked up same-day and scheduled for Thu 3/31 at $500 standard rate (no rush costs or extra fees required)

—Report delivered today (Mon 4/4) with final $$$ result at identical value to contract purchase price (directly aligned with neighboring comps)

I don’t have a ton of experience in real estate, but that was pretty much the easiest + most efficient transaction I can remember seeing.

For contrast, it just took my sister a full 30 days to close on an all-cash deal in Caldwell County (no appraisal ordered) because apparently even Surveys are backlogged around these parts.


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[Wulaw Horn 19,147]

59 minutes ago, Muny_Tex said:

 

CSB here since I know appraisals have been a massive headache in CenTex recently:

—Submitted appraisal request on Tue 3/29 (for condo property in New Orleans)

—Request picked up same-day and scheduled for Thu 3/31 at $500 standard rate (no rush costs or extra fees required)

—Report delivered today (Mon 4/4) with final $$$ result at identical value to contract purchase price (directly aligned with neighboring comps)

I don’t have a ton of experience in real estate, but that was pretty much the easiest + most efficient transaction I can remember seeing.

For contrast, it just took my sister a full 30 days to close on an all-cash deal in Caldwell County (no appraisal ordered) because apparently even Surveys are backlogged around these parts.


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Wow- I haven't run into any issues with Surveyors yet- have to put that on the future worry list.
Congrats on hitting 3 7's on the appraiser slot machine. It's a machine that doesn't seem to pay off for a lot of people...

[fattyflattie 4,638]

Friend put their house up last week for 595k. One showing on Saturday, highest offer at 1500 on Monday wins.  Was offered 665k this AM.  I think they built new about 6 years ago for 400-ish.   It’s a decent house, but I just don’t see >475k or so.  Also, isn’t that kind of a miss on the realtors part?    House down street listed lasted Thurs for 750. Wife and I laughed. They had a sale pending sign on Sunday afternoon.  This is in west Houston suburbia.  Shits borked.  I guess I'm stuck where I am because no way I can wrap my head around these costs.  Same with truck, time piece , and every other thing I have that need replacing.  

[Wulaw Horn 19,147]

6 minutes ago, fattyflattie said:

Friend put their house up last week for 595k. One showing on Saturday, highest offer at 1500 on Monday wins.  Was offered 665k this AM.  I think they built new about 6 years ago for 400-ish.   It’s a decent house, but I just don’t see >475k or so.  Also, isn’t that kind of a miss on the realtors part?    House down street listed lasted Thurs for 750. Wife and I laughed. They had a sale pending sign on Sunday afternoon.  This is in west Houston suburbia.  Shits borked.  I guess I'm stuck where I am because no way I can wrap my head around these costs.  Same with truck, time piece , and every other thing I have that need replacing.  

Yep.  If you sold though you could roll over your equity.  Could you imagine being a new buyer in this market?  Suuuuuuucks.

[fattyflattie 4,638]

1 minute ago, Wulaw Horn said:

Yep.  If you sold though you could roll over your equity.  Could you imagine being a new buyer in this market?  Suuuuuuucks.

Oh I forgot that part. Wife is stupid in this regard and never wants to move because of the “neighbors she loves”. She grew up on a street without many kids and it’s fucked up her thoughts on this. Fewer and fewer of those precious neighbors each year, as they cash in.  Touchy subject here. It obviously clouds my thoughts on it all, but I try to stay subjective in regards to the market. I mean the market it what it is obv, but crazy (to me) what people are paying now. And I’ll repeat. I’m not in HOT market Austin.

Houston. Burbs. 

I will admit I’m a bit surly because this has priced us out of a few places I had been working on getting to for the last several years.  That ability vanished like a fart in the wind. 

[jimmyjazz 46,093]

Well, if you sell and buy, you lose your homestead exemption.  It's a reset.  If you don't buy, you're on the hook for cap gains tax (above a certain level).  If you sit on it, you could be exposed to a downturn.

The strategy isn't entirely clear-cut.

[Catpfish 618]

1 hour ago, fattyflattie said:

Also, isn’t that kind of a miss on the realtors part?  

I wouldn't say it's a miss on the realtor's part without knowing the whole story.  You can only price based on comps and you don't see sales prices until they close (on MLS).  In times like these, it's not unusual for a 5-10% increase from house to house sale.  You'd really have to see what the appraisal comes in at, keeping in mind that just about all successful offers include a waiver of appraisal, meaning they are buying not matter where it comes in.  

It can also be an effective strategy to slightly underprice a house to get a bidding war going.  It's absolutely nuts but if you aren't bidding at least 15-20% over, you aren't even competitive at this point.  It's kind of strange that the opposite can really hurt a house...even though they are going over list by and large, overpricing can lead to a house sitting on the market and getting a "reputation"

 

 

[fattyflattie 4,638]

5 minutes ago, Catpfish said:

In times like these, it's not unusual for a 5-10% increase from house to house sale. 

I would of thought that at ~250k or so.  Listening to them, I think they felt they priced “aggressively” (the first offer was 10k over and they were stoked) but 70k is a pretty big delta (still roughly 10%).  I just figured the higher the price, maybe the finer it would be tuned. Guess there’s an argument that tiny boxes are easier to nail down, though.  I was more curious from our resident realtors, as I’ve only bought (built) once.  Seems like even houses that are overpriced are still going.  Happy for anyone making money off this market.  

[TKthunder2 4,997]

Also listing under catches more search options.  Some people might be willing to spend $700k on a house but their search parameters are going to be far less than that since they know it’s bidding war central.  A good realtor has the data and will price to get you the maximum views/action that results in the highest price.

[Neonmoon 38,130]

Just going to check rates today...

[Wulaw Horn 19,147]

We are only down 88 basis points. Not too shabby. 
What caused this you ask? 
the fed essentially saying what they’ve been saying for the last 6 months re balance sheet. How is this shit not priced in by now?  

[UTPhil2006 3,809]

1 hour ago, Neonmoon said:

Just going to check rates today...

I forget which one of you said hopefully that was the worst last week but insert youvekilledusall.gif

[Neonmoon 38,130]

On 3/26/2022 at 11:51 AM, Neonmoon said:

I think it’s going to get worse before it gets better (rate wise) 

 

1 hour ago, UTPhil2006 said:

I forget which one of you said hopefully that was the worst last week but insert youvekilledusall.gif

It was not me. 

 

[Wulaw Horn 19,147]

1 hour ago, UTPhil2006 said:

I forget which one of you said hopefully that was the worst last week but insert youvekilledusall.gif

Maybe it was a topper. Maybe.  That was me. LCHorn, who I hope to be when I grow up, said it's like tossing a ball in the air and eventually gravity will get it- and then he said he thinks they might fall faster than people think.  The psychology on this market it just brutal right now.  People keep saying the same type of stuff that they've been saying for months and we keep running for the exits all over again.  There's going to be a balance sheet sell off. It's going to happen sooner rather than later.  Enough.  Stop making rates go up 1/4 of a point every time someone at the Fed re-iterates that.  

[ZB'Tejas 593]

Things still hot despite.

Under contract in a day at 100K over ask:

https://www.zillow.com/homes/3510-Lyons-Rd-.num.1-Austin,-TX-78702_rb/2064710527_zpid/

[UTPhil2006 3,809]

Interest rate market to us the last month or two (up another .06 today to 2.62 blowing through the previous 3 year high of 2.55)

[Hefeweizen 5,328]

I'm not going to post the address but Surly 10% ers looking for a nice house in Eanes.... it's listed.

[CooterBrown 18,022]

I'm not going to post the address but Surly 10% ers looking for a nice house in Eanes.... it's listed.

Where can a 10%er afford to buy in Eanes? Is there a trailer park out on the western edge?

[Wulaw Horn 19,147]

17 minutes ago, CooterBrown said:

Where can a 10%er afford to buy in Eanes? Is there a trailer park out on the western edge?

Surly 10% is everyone else’s one percent. 

[UTPhil2006 3,809]

1 hour ago, CooterBrown said:

Where can a 10%er afford to buy in Eanes? Is there a trailer park out on the western edge?

Cuernavaca 

[Hefeweizen 5,328]

7 hours ago, Wulaw Horn said:

Surly 10% is everyone else’s one percent. 

This guy fucks….

 

 In a tent.

[closetohumping 17,458]

On 4/5/2022 at 11:23 AM, ZB'Tejas said:

Things still hot despite.

Under contract in a day at 100K over ask:

https://www.zillow.com/homes/3510-Lyons-Rd-.num.1-Austin,-TX-78702_rb/2064710527_zpid/

Basically California prices

[We’reTexas 1,473]

3 hours ago, closetohumping said:

Basically California prices

Austin is basically there. I mean obviously not if you really number crunch, but subjectively listings like that give me the same “WTF” feeling I get when I see 800 sq ft 2/1s asking $1.5M in SF. Just nonsensical. Edit: and to add, if I had to pick, I’d feel better about buying in SF or many parts of LA right now. 

Edited April 7, 2022 by We’reTexas