Property Specific approval letter confusion

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  • #59826
    Tara585
    Member

    Hi all. I believe I may have asked the question regarding rhe property specific letter. I reached out to my MC and he gave me some information on it. Cool. Well yesterday I actually located a home I want to see. I emailed the information on the property how my MC likes it. He responded that the house would work and also have a possibility of $25,000 for rehab if needed. That through me and I replied how is that possible and how did he come up with that amount.
    His reply…the room is for the possibility of rehab if needed but only pertains to the approved PITI.
    I feel like an idiot but I have no idea what that means. HELP.

    #59827
    Nelsont
    Member

    Without knowing the specifics I would say it sounds like the house you are interested in is, as it stands, under your budget.

    The way I am taking it is he is reminding you if you need to finance any renovations you would be allowed up to 25k before you reach your max. Again I know nothing about this house but, 25k is not a lot if you want to redo a couple bathrooms and/or a kitchen. That may be why he sent the reminder.

    • This reply was modified 2 years, 10 months ago by Nelsont.
    #59830
    Tara585
    Member

    @Nelsont..the house has a lot of updates on it but it does need more work. Thanks for explaining that. I just didnt know where he got that information and when I asked him he replied for me to have my realtor explain it to me. That kind of threw me.

    #59835
    Peapod0609
    Member

    Hi @Tara585,

    To echo what @NelsonT said, let’s just say your PITI was $1,200/month. And that the house as is would be $1,000/month. That would leave room in your rehab budget for renovations if you want to do that. The difference in your max PITI and the estimated cost of the house gives you a rough idea of what to expect for rehab budget, which is where they likely got that info.

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