I am still finding more properties than the money able to buy them. Seems you either need to have cash to purchase a Kansas City investment property or you need to have a full colonoscopy. The rules for lending on an investment property are getting marginally more reasonable. But still so many silly, reactionary rules that make no sense.
For instance, I had an underwriter tell me it’s Freddie/Fannie policy that if we are getting the rent deposits and pro-rated rents transferred on a HUD-1 Settlement Statement then we need full documentation and trace back to the original taking of the application or it’s considered a seller contribution. What?
The only way to assure that the Buyer receives from the Seller the transfer of rent deposits and/pro-rated rents is to do it on the Settlement Statement. But no, we’re told by the very same people (underwriters and Fannie/Freddie) to handle this transaction out of closing that prohibit financial transactions outside of closing!!!!!?????!!!!!!
Seriously, what is to stop the Seller from saying, just after closing, “That’s it.” After all, he’s now complied with his obligations of the sale and is no longer bound to transfer those dollars. Fannie/Freddie….you are making a huge mistake here. But then again, you should be used to hearing that by now.