We had some clients over the weekend call and tell us that even though they are under contract to purchase a home… they found a different home they want to now purchase!
“We talked to our agent… “Can’t You Just Turn Me Down?” Ugh, No. Positively no. Will not issue a turn down letter when I don’t have ANY basis for denying your loan. Don’t Ask Me To Do That – It’s Mortgage Fraud
WHY? Well, because I was involved in a LAW SUIT when one of our loan officers did this! The loan officer didn’t have DOCUMENTED evidence that a plant was scheduled to close. She talked to the Human Resource Department, and she knew they had been told… but it had not happened yet.
This is a completely different scenario. The folks just decided they like a different house and want their Earnest Money back. The agent told them we could deny the loan.
Well, I can’t. I’d love to help, I want to be the loan officer you use… but I can’t take that liability.
Remember when you bought your first house? Our Mortgage Rate on our first house was 13.75%! These days, mortgage interest rates are 10% lower! It’s time… kick the kids from the nest, and help your kids buy a house in NC – but don’t let them commit Mortgage Fraud! Here’s some things a parent can do to help a child buy a house:
- Gifts from Parents: The kids can get a gift of the entire amount from family and friends, they can even use a BRIDAL REGISTRY to show who gave you the individual amounts! If you are giving a Gift – please know that there’s extra paperwork involved… if you don’t want to give us the paperwork (invasion of privacy?) then the kids will not be buying their dream home. We hate to “over document” a file, we believe your good intentions, but Fraud is rampant, and this is the way the system works now… underwriters are STRICT on gift funds!
- Loans For Downpayment: It’s important to know that you can give your kids a GIFT of CASH to use – but you can’t LOAN them the cash for the downpayment and closing costs.
- 3% Grant From NC To Buy a House: For first time homebuyers who qualify for it, the State of NC offers 3% Grants to help buy a house. It comes in the form of a 2nd mortgage, that has no payments due for 30 years – but the kids must have $1000 to put into the transaction, and that can be a gift.
- USDA Home Loans: These loans are available in every county in NC, and have NO DOWN PAYMENT. Sellers will often pay the closing costs – so it really is a cheap way to get into a house if the kids meet the 640 credit requirements, are below the maximum income limits, and buy within the USDA Home Loan Footprint.