Mortgage Adviser: Sheila Perez
Property type: Single-family home in Antioch
Loan amount: $346,606
Loan terms: FHA 30 year fixed at 5.125% with $6100 lender credit for closing costs
Background: Sheila’s client, a construction worker who is a single father with two young children and also takes care of his mother and brother, had been living in an Oakland home for several years when he learned that his landlord was planning to sell the property. With no luck finding a suitable replacement rental home and with very little time, at Sheila’s suggestion he contacted Michelle Mino of Mino Realty in Richmond, an agent who Sheila knew was an expert at finding affordable properties, for help in the seemingly impossible task of finding an affordable home to buy in the Bay Area that would accommodate a family of five, and doing so very quickly. Sheila Perez determined that the client would need to use FHA (Federal Housing Administration) financing because of his credit profile, high debt ratio and lack of available savings.
In the meantime, Michelle located the perfect home for the client’s situation so they needed to move quickly because of our competitive housing market. Because the property was a “flip” property (previously sold within the last 120 days at a much lower price), Sheila had to work with the buyer and seller agents to compile information on why the property was selling for so much more than it had sold for only a few months before. She also worked with the client’s family to obtain a commitment of gift funds from a relative, but that was not enough to cover the down payment and closing costs. With the seller unwilling to provide a credit for closing costs even if the sale price was increased to cover it, Sheila structured the loan pricing so that, in exchange for a higher interest rate, the client received a substantial lender credit to cover the closing costs. The buyer agent also contributed part of her commission to make up some of the shortfalls.
In the end the cash to close was very tight and a great deal of effort was required to close the home purchase on time because of the property flip situation, but the ecstatic client achieved home ownership in one of the most challenging real estate markets in the country thanks to a great team effort by Sheila and Michelle.