Mortgage broker trying to screw us?

[ChromePony]

So. I'm pooling money with a couple of partners to purchase and investment 4-plex (the details of the transaction aren't really relevant here) and we've just run into an interesting situation with our mortgage broker. This is the first experience any of us have with real estate and we've been very careful and thorough thus far, but I'm not sure how to handle this one.

We're working with a mortgage broker that came recommended from a real estate agent we had contact with. However we ended up making an offer on an unlisted property brought to us by another agent instead. The mortgage guy has been very professional so far but I guess this could bring his loyalty into question a little.

Anyway, things were moving along, he gave us a good quote on an 80-10-10 combo loan that would avoid the need for mortgage insurance. We gave him all of our information and told him to lock it down. Well, he has just sent back the disclosure paper work to sign and the loan is not the one he quoted us. Its a straight 10% down deal and will cost us a significant amount in insurance costs. He at no point mentioned this discrepancy.

I emailed him to ask about it and he said that the lender wanted to structure the loan in a different way...apparently a way that will cost us more money. I'm extremely irritated by the fact that apparently tried to just slip this by us.

Time is also tight on this deal and he knows it, if we ditch him to go to another broker it might fall through. Its possible he's trying to take advantage of us here, its also possible that he's just a bad communicator. Neither bodes well for his future with us, but I am unsure how to respond. Anyone with a little more experience in this kind of thing got some advice?

[Tien]

You are 100% being cheated.

Go back to the seller and ask for more time on the deal, say you have been cheated by your broker.

If seller gives you more time (another 30 days), go get another lender. Mortgage brokers are a dime a dozen.

How much more will you have to pay that you didn't know about before?

If the deal is really good and you would lose it any other way, you may have to bite the bullet but I'd do whatever it takes not to.

[ChromePony]

Finally got a call back from him today, he said he was sorry and should have pointed that out to us. The reason the combo loan fell through was probably legit, as we had heard from other lenders that there might be problems with it based on our situation. However he promised it to us which is why we chose to work with him in the first place, basically this feels like a classic bait and switch.

We have quotes from another broker who has a better relationship with our current agent, as long as she can turn it around fast enough I don't see any real reason not to switch to her instead.

[debater]

Chrome...

Disclosure. I am a mortage broker. I do investor deals. I spent 14 years in the credit card side of banking.

Comments. I was surprised to read about this proposed 80-10-10 deal. Since the sub-prime debacle the 100% investor loans do not exist. (at least in my market - CO and that I know of)

I have one investor that I have done several deals with in the last 6 months. He is A+++. Has 800 Ficos. DTI (Debt to Income) is 12%. Has sizable six figure net worth. Lot of liquid cash. Well, you get the picture.

Last deal I did with him, could only get 90% loan. Just 2.5 months before did a 100%.

The market has changed. Although I keep hearing from the lender reps, that the 100% investor deals will be back albeit with higher requirements for fico scores. Have not seen it yet.

I will be looking early next week for a 100% deal again. If you know of any let me know. (any fellow brokers out there?)

PM me if you would like to discuss further. Will help in any way I can....alwasy love to learn!

Debater

[SossMan]

[ QUOTE ]
Chrome...

Disclosure. I am a mortage broker. I do investor deals. I spent 14 years in the credit card side of banking.

Comments. I was surprised to read about this proposed 80-10-10 deal. Since the sub-prime debacle the 100% investor loans do not exist. (at least in my market - CO and that I know of)

I have one investor that I have done several deals with in the last 6 months. He is A+++. Has 800 Ficos. DTI (Debt to Income) is 12%. Has sizable six figure net worth. Lot of liquid cash. Well, you get the picture.

Last deal I did with him, could only get 90% loan. Just 2.5 months before did a 100%.

The market has changed. Although I keep hearing from the lender reps, that the 100% investor deals will be back albeit with higher requirements for fico scores. Have not seen it yet.

I will be looking early next week for a 100% deal again. If you know of any let me know. (any fellow brokers out there?)

PM me if you would like to discuss further. Will help in any way I can....alwasy love to learn!

Debater

[/ QUOTE ]

????
I must be missing something here, but an 80-10-10 IS 10% down, not 100% financing? Who mentioned 100%?

With good credit and verifiable income, 80-10-10 on investor is easy. Even 80-15-5 is doable in most situations.

700 FICO
Full Doc
80-10-10 (80% first, 10% 2nd, 10% down no PMI)
Non-Owner 4 unit
1st - 7.25% par
2nd - Heloc at prime + 2%