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Thanks for all the information. Based on your response to my question about homestead, I was able to find out that I can apply for the Cali tax exemption and will be exempted $7k from my assessment yearly going forward. Appreciate all the knowledge being provided to all of us. Keep up the good work!
Agree on the moving part. I worked a deal with my landlord to only pay 2 wks out of the 4 for the month so that I did not have the stress to handle the move right after the last month I was supposed to be out. It worked out since I was always on good terms with landlord.
Great strategy....an important lesson in there is when you need something ask....if you hadn't asked, you never would have been able to strike that win-win deal for you and the landlord. Nice work!
I 100% agree with your " no additional stress". Some people can close on their new home right after settling on their previous home or terminated their lease and move on the same day across states. It seems a little tight should something go wrong!
Josh, I was wondering if you ever came across someone who was purchasing a new spec construction home in which they were able to pick upgrades prior to the start of construction. They have to pay 100% upfront for some upgrades and 10% upfront for other upgrades in addition to the ernest money. If during the build time, the completed identical floor plans in the same community have had price cuts of 25-35k in order to sell sitting inventory. What happens then when the home is completed 5-6 months later and does not appraise based on those comps that the builder significant cut the price? Does switching from a conventional to an FHA loan, after being under contract, but before the appraisal, protect you from having to come out of pocket an extra 30k if the home does not appraise? Is that allowed to switch from conventional to FHA with the same downpayment prior to appraisal but after going under contract? Or does switching to an FHA loan not protect you with builder if the appraisal comes in low? Hope I am making sense. Thanks in advance to both of you for educated the public and providing more transparency in the real estate market transactions! Thank you!
It's not uncommon for builders to require deposits for upgrades, especially if it's not a common upgrade that most buyers would like. In terms of financing, switching to FHA won't help a low appraisal as the value for loan to value purposes will be based off the lower of the sale price OR the appraised value. If you were doing 20% down and the appraisal came in 10% low, you could still do the loan but it would be considered 10% down with the remaining 10% covering the appraisal gap. If you were doing a lower down, FHA could be used to drop the required down to 3.5% enabling you to have more funds to cover the appraisal gap. Hope that helps!
