Island Living Questions

Joebon · 02-19-2016, 06:15 PM

So, your friend wants to buy a second home with no money down, improve the home and buy a boat? Isn't America great.

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TiltonBB · 02-19-2016, 06:29 PM

Most all fixed rate loans are sold in the secondary market and there are guidelines for them to be accepted. Even when they are not sold and instead held by a local bank, the local bank generally uses the same underwriting guidelines to process the loan. That way if the bank ever wishes to transfer servicing the new lienholder knows it meets appropriate criteria.

The value that will be used by the lender is the lesser of the appraised value or the selling price.

secondcurve · 02-20-2016, 07:39 AM

Quote:

Originally Posted by Joebon

So, your friend wants to buy a second home with no money down, improve the home and buy a boat? Isn't America great.

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The type of financing this person is looking for would have been tough to get even during the boom days of 2004-2007.

thinkxingu · 02-20-2016, 09:00 AM

Quote:

Originally Posted by Joebon

So, your friend wants to buy a second home with no money down, improve the home and buy a boat? Isn't America great.

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Did I miss something? Where does it say "no money down"?

I also used MVSB, and worked with Lori Borin. Great people.

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Joebon · 02-20-2016, 09:53 AM

Quote:

Originally Posted by thinkxingu

Did I miss something? Where does it say "no money down"?

I also used MVSB, and worked with Lori Borin. Great people.

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It says purchase price $300, $50 for upgrades and $50 for a boat and a mortgage of $400. Math never lies.

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secondcurve · 02-20-2016, 11:43 AM

Quote:

Originally Posted by thinkxingu

Did I miss something? Where does it say "no money down"?

I also used MVSB, and worked with Lori Borin. Great people.

Sent from my XT1528 using Tapatalk

Yes you did. Basic math: Home price $300,000 + boat of $50,000 and $50,000 for improvements. mortgage loan he is seeking is $400,000. Basically, the person is asking for a loan well in excess of the $300,000 home purchase price.

02-19-2016, 06:15 PM	#1
Joebon Senior Member Join Date: Sep 2014 Posts: 142 Thanks: 23 Thanked 14 Times in 11 Posts	So, your friend wants to buy a second home with no money down, improve the home and buy a boat? Isn't America great. Sent from my iPhone using Tapatalk

02-19-2016, 06:29 PM	#2
TiltonBB Senior Member Join Date: Feb 2005 Location: Gilford, NH and Florida Posts: 3,068 Thanks: 726 Thanked 2,238 Times in 957 Posts	Most all fixed rate loans are sold in the secondary market and there are guidelines for them to be accepted. Even when they are not sold and instead held by a local bank, the local bank generally uses the same underwriting guidelines to process the loan. That way if the bank ever wishes to transfer servicing the new lienholder knows it meets appropriate criteria. The value that will be used by the lender is the lesser of the appraised value or the selling price.