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Posted

the VA version is pretty shitty.  For example, you can't do a kitchen remodel or a bath remodel on the VA version.  You can replace a roof, replace flooring, and fix plumbing or electrical, but you can't "pretty it up".

Also, your contractor has to be VA approved, and very few go through that PITA process.

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Posted
3 hours ago, Gil Bang said:

the VA version is pretty shitty.  For example, you can't do a kitchen remodel or a bath remodel on the VA version.  You can replace a roof, replace flooring, and fix plumbing or electrical, but you can't "pretty it up".

Also, your contractor has to be VA approved, and very few go through that PITA process.

Sounds like the VA

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Posted

Current mortgage is a 203k loan.  It was great for me, old home in Kerens, Tx, needed lots of work. Bought the home cheap and got a good appraisal for the loan.  It is a pita loan to get and you need to find a GC who will actually work with 203k loan as they get paid after the work is done and inspected .

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Posted
9 hours ago, Gil Bang said:

the VA version is pretty shitty.  For example, you can't do a kitchen remodel or a bath remodel on the VA version.  You can replace a roof, replace flooring, and fix plumbing or electrical, but you can't "pretty it up".

Also, your contractor has to be VA approved, and very few go through that PITA process.

I remember that it was very cumbersome and not worth it for me, when I researched it a couple years ago.  

39 minutes ago, TexasGrunt said:

Current mortgage is a 203k loan.  It was great for me, old home in Kerens, Tx, needed lots of work. Bought the home cheap and got a good appraisal for the loan.  It is a pita loan to get and you need to find a GC who will actually work with 203k loan as they get paid after the work is done and inspected .

OK so things are as I remember, and not for an investor.  But for a young person that is very handy, and works for a roofing company? Might be worth taking a hard look at if I was in the situation he is.  The fact he is familiar with the hassle of working with insurance companies might actually be a plus in dealing with the BS.  I would also think that in more rural areas there might be more opportunity? Maybe easier to find a neglected house on a little land that looks pretty damn nice once fixed up.  Maybe I can help this young guy along in life.  Good guy, and I wanted to follow up on our conversation with accurate "here's what you can do" advice.

 

-When I did renovate and sell a foreclosure I did it all on my dime.  I wasn't trying to scale, just seeing if my instincts were right.  It seemed at that point in time the best way for financing for a foreclosure remodel, was building a relationship with a local community banker? And doing a 1 year interest only loan. Or use a hard money lender.  I assume this is still the case.

Thanks for all the info! 

Posted

Powell - "Housing has stabilized?" 

WTF. Stabilized in that as long as everyone keeps bailing madly the life boat may barely remain afloat?  So does that mean Powell expects to see improving MMI numbers at these levels?  Or that these levels are the acceptable levels?  In his prepared remarks, but dang.

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Posted
8 minutes ago, horn4life said:

Powell - "Housing has stabilized?" 

WTF. Stabilized in that as long as everyone keeps bailing madly the life boat may barely remain afloat?  So does that mean Powell expects to see improving MMI numbers at these levels?  Or that these levels are the acceptable levels?  In his prepared remarks, but dang.

The guy is tone-deaf.

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Posted (edited)
1 hour ago, 86txex said:

The guy is tone-deaf.

I mean he is right in that on a graph housing has stabilized.  He also said that even with lower rates the lack of supply will be an issue.  Which to me indicated higher price stickiness?  Thus a little bump for the builders today.

Edited by horn4life
Posted

Everyone (who's not a cash buyer) seems fucked for the rest of the year.  I'm still on the fence over building vs buying and want to see if we get a glut of inventory in the spring to influence price action.

Posted
2 hours ago, Gravy Train said:

Everyone (who's not a cash buyer) seems fucked for the rest of the year.  I'm still on the fence over building vs buying and want to see if we get a glut of inventory in the spring to influence price action.

I don’t see where the glut of inventory will come from unless we get lower rates. I think that might bring in an even greater number of buyers though so doubt that it helps pricing (from a buyer perspective) and think it’s more likely to hurt. 

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Posted
3 hours ago, Gravy Train said:

Everyone (who's not a cash buyer) seems fucked for the rest of the year.  I'm still on the fence over building vs buying and want to see if we get a glut of inventory in the spring to influence price action.

If by fucked you mean you aren't going to see 5% in 2025?  Yeah, thats the most likely scenario.  But I would argue that with tight inventory and assumed appreciation, is that percent that huge?  Is an 8% loan fucked in it appreciates 8% in 4 years for example?  I would also be selling that yes in the 7's you might feel fucked, but right now with so much uncertainty, you cannot rule out the possibility of a severe DP it the next two fed moves are upwards.  Plus there are always some buyers that have to sell, high rates or not.   

Antidotal story, but I know a gal whose parents got her a house, and she took care of them until the end, and sh put that house on the market like the week before Christmas (like a dumbass).  I think her ask was $420, and she got a $385 offer, and held firm without countering.  Her folks had bought the house maybe 3 years ago for $400K and she had put in new appliances and countertops and new roof (storm).  So that $420K number seemed reasonable.  If she got that same $385K offer today she would not only counter, but would be a lot more flexible negotiating.  For her it's found money, but she is willing to capitulate on price. Now she's not the norm, but she is an example of a seller willing to capitulate on price to move the property. Her agent of course was pissed.

 

Posted

https://www.wsj.com/economy/housing/housing-market-delisting-home-sales-1afd45aa?st=xKsafn&reflink=desktopwebshare_permalink

Nationwide averages are now at 5-months of supply and everyone who delisted during the winter months will try to test the market again in the spring.  Additional inventory is the only mechanism on the horizon to push pricing while rates remain high.  Buyers will continue to sit on the sidelines with high rates and a weak labor market.

Posted
1 hour ago, horn4life said:

If by fucked you mean you aren't going to see 5% in 2025?  Yeah, thats the most likely scenario.  But I would argue that with tight inventory and assumed appreciation, is that percent that huge?  Is an 8% loan fucked in it appreciates 8% in 4 years for example?  I would also be selling that yes in the 7's you might feel fucked, but right now with so much uncertainty, you cannot rule out the possibility of a severe DP it the next two fed moves are upwards.  Plus there are always some buyers that have to sell, high rates or not.   

Antidotal story, but I know a gal whose parents got her a house, and she took care of them until the end, and sh put that house on the market like the week before Christmas (like a dumbass).  I think her ask was $420, and she got a $385 offer, and held firm without countering.  Her folks had bought the house maybe 3 years ago for $400K and she had put in new appliances and countertops and new roof (storm).  So that $420K number seemed reasonable.  If she got that same $385K offer today she would not only counter, but would be a lot more flexible negotiating.  For her it's found money, but she is willing to capitulate on price. Now she's not the norm, but she is an example of a seller willing to capitulate on price to move the property. Her agent of course was pissed.

 

What if you are prodotal?

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Posted

Friend group posted this recently, bullshit or not?

 

Learned something new. All fha and veteran loan are assumable. Meaning if someone is selling their house for 300k and they owe 200k at 3% you can take that over as loan as you bring the difference or a loan for the difference

Posted
11 minutes ago, ChickenSandwich said:

Friend group posted this recently, bullshit or not?

 

Learned something new. All fha and veteran loan are assumable. Meaning if someone is selling their house for 300k and they owe 200k at 3% you can take that over as loan as you bring the difference or a loan for the difference

Not bullshit but also not the panacea for the consumer that it sounds like.  Let me give you an example;

Joe Smith bought his house in 2018 for $300k, put down 3.5% on and FHA loan, and now wants to sell it (and his 2.5% interest rate) as an FHA assumable loan).  The problem is that his house is now worth $500k, he owes $275K, so the new buyer will need to come up with $225k to assume a loan whose PRIMARY utility in the marketplace is to make homebuying more attainable for borrowers lacking great credit and/or more than 3.5% for down-payment.  
 

The other shit part is that the assumption (and this is covered upthread) takes 45-“who knows how many” days for the assumption process to conclude and most sellers are going to prefer someone with a predictable timeline.  
 

That said, it’s something to sell in a crowded marketplace and there’s probably niche cases (FHA multifamily, VA Jumbo) where it’s far more likely to be utilized.  

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Posted

Yeah it’s not a thing. I think last year less than 10k assumable loans were done. 
4.06M homes were sold. If you consider something that’s 2/10’s of 1% of the market relevant that’s fine- it’s more a talking point than anything that matters in any real way. 

Posted
On 2/14/2025 at 6:44 AM, horn4life said:

If by fucked you mean you aren't going to see 5% in 2025?  Yeah, thats the most likely scenario.  But I would argue that with tight inventory and assumed appreciation, is that percent that huge?  Is an 8% loan fucked in it appreciates 8% in 4 years for example?  I would also be selling that yes in the 7's you might feel fucked, but right now with so much uncertainty, you cannot rule out the possibility of a severe DP it the next two fed moves are upwards.  Plus there are always some buyers that have to sell, high rates or not.   

Antidotal story, but I know a gal whose parents got her a house, and she took care of them until the end, and sh put that house on the market like the week before Christmas (like a dumbass).  I think her ask was $420, and she got a $385 offer, and held firm without countering.  Her folks had bought the house maybe 3 years ago for $400K and she had put in new appliances and countertops and new roof (storm).  So that $420K number seemed reasonable.  If she got that same $385K offer today she would not only counter, but would be a lot more flexible negotiating.  For her it's found money, but she is willing to capitulate on price. Now she's not the norm, but she is an example of a seller willing to capitulate on price to move the property. Her agent of course was pissed.

 

Sounds like she has a crappy agent. 
 

 

switching gears, go make some money kings.  You’re welcome

 

image.thumb.png.8d61a0b356d7917d09ca3ec953f6da4b.png

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Posted
On 2/5/2025 at 2:41 AM, Wulaw Horn said:

As a mortgage guy I have no problem with it. I know all your finances if you do a mortgage with me and that can be awkward for a friend.  I imagine the argument is somewhat the same for an agent.  That's actually sort of dumb b/c everyone knows what you bought or sold your house for (more or less) without knowing your financial stance, but that's a distinction not many probably make.

My opinion. I’ll use a friend as a real estate agent but not for a mortgage 

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Posted
On 2/19/2025 at 3:02 AM, Wulaw Horn said:

Yeah it’s not a thing. I think last year less than 10k assumable loans were done. 
4.06M homes were sold. If you consider something that’s 2/10’s of 1% of the market relevant that’s fine- it’s more a talking point than anything that matters in any real way. 

But let’s say I want to go after some lower cost investment properties in the 200-400 range. Could I do that and refi the equity difference

On 2/6/2025 at 1:30 AM, Incredulity said:

Lots of people go literally insane(largest transaction of their life) over home purchases.  I would strongly advise against mixing that with friends and family.  

"you made 20 grand on the house I bought, you can buy drinks"

"you made 20 grand on this house and you only brought over lite beer"

"I wish we could go to Acapulco, must be nice to have the 20 grand from the house I sold"

rinse, repeat

 

I probably throw some cash her way after close but either way she needs to shut up.  But the perception from non realtors is “you just showed us a few homes.  We could’ve done that ourselves”

Posted
On 2/13/2025 at 3:44 PM, horn4life said:

 

Antidotal story, but I know a gal whose parents got her a house, and she took care of them until the end, and sh put that house on the market like the week before Christmas (like a dumbass).  I think her ask was $420, and she got a $385 offer, and held firm without countering.  Her folks had bought the house maybe 3 years ago for $400K and she had put in new appliances and countertops and new roof (storm).  So that $420K number seemed reasonable.  If she got that same $385K offer today she would not only counter, but would be a lot more flexible negotiating.  For her it's found money, but she is willing to capitulate on price. Now she's not the norm, but she is an example of a seller willing to capitulate on price to move the property. Her agent of course was pissed.

 

Agreed, she is not the norm.  People want blood for their property from what ive seen.  She walked away with ~$350K since her cost basis was the cost of the  stuff she improved.  She for sure is not the norm since the house was given/gifted to her.  Sounds like she just wanted to be done by the New Year.

Posted

Update, my friend with the inherited house was smart in the end.  She had somebody meet her $420K price, and I think closing is next week? But she would ahve taken the low offer if that was all she got.  I think that it was just a low ball December offer. Which is what every offer submitted in December honestly almost should be.

 

Posted

Interesting experience today doing a showing.

Yesterday I text the listing agent asking for a 9 AM appointment.    I get the confirmation quickly.

 

This morning at 8:15 or so, I get a text from the listing agent: 

 

I will have the home ready for your 9 AM showing.  I will have the home at 70 degrees, all the lights will be turned on, and candles will be lit around the home.  When the showing is complete, just text me and I will come over and secure everything.  The doors will be unlocked by 8:45 so you can walk your client through the front door without fooling with a lockbox

 

Fucking listing agent doing his job to present his listing in the best possible light.   Mad respect for this guy. 

 

 

 

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Posted
1 hour ago, Gil Bang said:

Interesting experience today doing a showing.

Yesterday I text the listing agent asking for a 9 AM appointment.    I get the confirmation quickly.

 

This morning at 8:15 or so, I get a text from the listing agent: 

 

I will have the home ready for your 9 AM showing.  I will have the home at 70 degrees, all the lights will be turned on, and candles will be lit around the home.  When the showing is complete, just text me and I will come over and secure everything.  The doors will be unlocked by 8:45 so you can walk your client through the front door without fooling with a lockbox

 

Fucking listing agent doing his job to present his listing in the best possible light.   Mad respect for this guy. 

 

 

 

And for $5 they could have closed the fucking deal! 

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Posted
1 hour ago, Gil Bang said:

I will have the home ready for your 9 AM showing.  I will have the home at 70 degrees, all the lights will be turned on, and candles will be lit around the home

I've uhhh seen movies, short movies that is, that start out like this.

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