Ribbon Home Buy Before You Sell Plan

There have been posts about Ribbon Home here before (I’ve been scouring Reddit and the rest of the internet for honest reviews), but none of them had to do with the “buy before you sell’ option.

We already own a house, but we need the money from the sale in order to put a 20% down payment on a new place, and also to make an offer with no contingencies.

However, we can’t sell this place first because we don’t have anywhere to go but a rental which will cost way more (not to mention having to move twice, etc). Plus, we are in the process of getting a new roof for our current home which is about 10k and also eats into our cash flow.

We also don’t qualify for two mortgages at once- that would have been a great plan but we don’t qualify for almost 900k of mortgages lol.

Ribbon Home was recommended to me by our lender. They can essentially help you by making an all cash offer for the home you want, and then rent from them while you sell your home/get financing set up.

Their fee for this in my state is 2.75%. You pay that fee up front basically as your escrow deposit. That percentage ends up being almost 15k based on the price range we’re looking in (literally all we want is 2 bathrooms and apparently that will cost us about 500k). Then, you also owe the first month’s rent (at the closing where Ribbon is buying your house in cash). That puts us at around 20k 😳. Which also eats into our down payment funds since we don’t have that kind of cash that we’re willing to fork over that won’t even go towards a mortgage.

Representatives at Ribbon say you can have your fee paid by the sellers under seller paid closing costs. But that doesn’t make sense to me since it seems like the escrow deposit HAS to be at least 2.75%. Are they trying to say that I should get the seller to write that check for us??? Doesn’t make any sense.

We were thinking maybe our only option left is taking out a HELOC. I don’t even know.

This is all so crazy to me. How does anyone buy a house when they have one to sell in this market where you basically have to have ZERO contingencies?!

TL;DR: I need to buy a house with money from my current home’s sale, but can’t figure out how to do that when we have to write offers with no contingencies. Ribbon home was recommended to me but something ain’t adding up right with their fees and such lol.

submitted by /u/martielonson
[link] [comments]

There have been posts about Ribbon Home here before (I’ve been scouring Reddit and the rest of the internet for honest reviews), but none of them had to do with the “buy before you sell’ option. We already own a house, but we need the money from the sale in order to put a 20% down payment on a new place, and also to make an offer with no contingencies. However, we can’t sell this place first because we don’t have anywhere to go but a rental which will cost way more (not to mention having to move twice, etc). Plus, we are in the process of getting a new roof for our current home which is about 10k and also eats into our cash flow. We also don’t qualify for two mortgages at once- that would have been a great plan but we don’t qualify for almost 900k of mortgages lol. Ribbon Home was recommended to me by our lender. They can essentially help you by making an all cash offer for the home you want, and then rent from them while you sell your home/get financing set up. Their fee for this in my state is 2.75%. You pay that fee up front basically as your escrow deposit. That percentage ends up being almost 15k based on the price range we’re looking in (literally all we want is 2 bathrooms and apparently that will cost us about 500k). Then, you also owe the first month’s rent (at the closing where Ribbon is buying your house in cash). That puts us at around 20k 😳. Which also eats into our down payment funds since we don’t have that kind of cash that we’re willing to fork over that won’t even go towards a mortgage. Representatives at Ribbon say you can have your fee paid by the sellers under seller paid closing costs. But that doesn’t make sense to me since it seems like the escrow deposit HAS to be at least 2.75%. Are they trying to say that I should get the seller to write that check for us??? Doesn’t make any sense. We were thinking maybe our only option left is taking out a HELOC. I don’t even know. This is all so crazy to me. How does anyone buy a house when they have one to sell in this market where you basically have to have ZERO contingencies?! TL;DR: I need to buy a house with money from my current home’s sale, but can’t figure out how to do that when we have to write offers with no contingencies. Ribbon home was recommended to me but something ain’t adding up right with their fees and such lol. submitted by /u/martielonson [link] [comments]

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