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post #61 of 3338
Quote:
Originally Posted by crcballer55 View Post

1. Make sure you have 3-6 months of expenses in your emergency fund.
2. Pay off any debts
3. Make sure the entire amount of your payment (principle, interest, taxes, insurance, etc.) are no more than 1/3 of your take home pay.

If you have all those in place, then consider buying a house. No matter what anyone says, a house will cost you more than renting unless you're in a blighted area. Even if the monthly payments pen out, you WILL have to make your own repairs to the home and that will add up over time. The advantage to owning is that you can write off the interest portion of the loan and eventually have NO payment, which can be used for whatever you want down the road.

2 and 3 the loan company will make sure of that

#1 I kind of disagree. I bought my first house with no money down but with around $400 in my account saved. Never needed repairs because I bought a good house. Had small upgrade and repairs I did myself but I took on a 2nd job job to save money etc..

I wouldn't stop myself from buying a house with little saved. Most people put the repairs on credit anyways and just pay monthly.

I also got a roommate for about 7 months so that helped with saving about 3k.. Just make sure your roof, sewer and furnace, air conditioner is good and you will be alright

My first mortgage was about $750-$800 a month
Edited by Superb - 11/9/14 at 10:54pm
post #62 of 3338
Quote:
Originally Posted by Dam itz Lou View Post

Does anyone know how taxes on homes are calculated ? I'm looking at homes in the 200-250k and I've seen taxes on houses from 7k to 12k. Is it possible to get them lowered?

 

It depends on the area. They typically go on the appraised value of the home. Here in CA, 1.5% of the purchase price and can't be raised more than 1%/yr. I know a lot of other areas don't have provisions like that, so consult a Real Estate agent in your area for specifics.

post #63 of 3338

Can someone school me on how buying a house/paying a mortgage/getting a loan works exactly? Might be moving (job relocation/promotion) and want to know if I have enough saved up to buy a home...

 

So, let's say I wanted to buy a $70,000 house (smaller midwest city)...how much would I need for down payment, how much would my mortgage be, loan from the bank? Any/all info is appreciated. Thanks in advance.

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post #64 of 3338
Quote:
Originally Posted by TVobach View Post
 

Can someone school me on how buying a house/paying a mortgage/getting a loan works exactly? Might be moving (job relocation/promotion) and want to know if I have enough saved up to buy a home...

 

So, let's say I wanted to buy a $70,000 house (smaller midwest city)...how much would I need for down payment, how much would my mortgage be, loan from the bank? Any/all info is appreciated. Thanks in advance.

 

The mortgage company will want to know your average salary for the previous 2 years with pay stubs and know you have some kind of reserve established by bank statements and tax records. Typically, the lowest down payment you can get now is 5% with an FHA loan, but as I stated earlier, the MI on those is ridiculous, so I would stay away from that option if possible. The larger your down payment, the lower your mortgage insurance. If you put at least 20% down, you won't need any (unless you get a subprime loan). Also, just because a lender has the best rates, doesn't mean you want to go with them. Typically, your Realtor will have a list of preferred vendors they like to work with because he/she knows they can close on time. If you don't get your loan closed within the contractual period, there can be penalties assessed that can start costing you money and nullify the savings from that particular lender.

 

I like using the Bank Rate mortgage calculator since it gives graphs and detailed info http://www.bankrate.com/calculators/mortgages/mortgage-payment-calculator.aspx

 

My recommendation if you're moving, find a Realtor to help you find a rental for a year so you can learn the area. That way you'll know what areas best suit your needs and lifestyle before you jump into buying a home.

post #65 of 3338
Quote:
Originally Posted by crcballer55 View Post
 
Quote:
Originally Posted by TVobach View Post
 

Can someone school me on how buying a house/paying a mortgage/getting a loan works exactly? Might be moving (job relocation/promotion) and want to know if I have enough saved up to buy a home...

 

So, let's say I wanted to buy a $70,000 house (smaller midwest city)...how much would I need for down payment, how much would my mortgage be, loan from the bank? Any/all info is appreciated. Thanks in advance.

 

The mortgage company will want to know your average salary for the previous 2 years with pay stubs and know you have some kind of reserve established by bank statements and tax records. Typically, the lowest down payment you can get now is 5% with an FHA loan, but as I stated earlier, the MI on those is ridiculous, so I would stay away from that option if possible. The larger your down payment, the lower your mortgage insurance. If you put at least 20% down, you won't need any (unless you get a subprime loan). Also, just because a lender has the best rates, doesn't mean you want to go with them. Typically, your Realtor will have a list of preferred vendors they like to work with because he/she knows they can close on time. If you don't get your loan closed within the contractual period, there can be penalties assessed that can start costing you money and nullify the savings from that particular lender.

 

I like using the Bank Rate mortgage calculator since it gives graphs and detailed info http://www.bankrate.com/calculators/mortgages/mortgage-payment-calculator.aspx

 

My recommendation if you're moving, find a Realtor to help you find a rental for a year so you can learn the area. That way you'll know what areas best suit your needs and lifestyle before you jump into buying a home.

Thank you, sir. Also...nice avy. :lol

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post #66 of 3338
Quote:
Originally Posted by JohnnyRedStorm View Post

Worst thing you want is to pay 3 years of your mortgage and then default. If you've got a great job, maybe.

Quote:
Originally Posted by Superb View Post

All depends. When I first got my first home i only had $400 in my account. It stayed that way for years. I was able to survive

Quote:
Originally Posted by crcballer55 View Post

1. Make sure you have 3-6 months of expenses in your emergency fund.
2. Pay off any debts
3. Make sure the entire amount of your payment (principle, interest, taxes, insurance, etc.) are no more than 1/3 of your take home pay.

If you have all those in place, then consider buying a house. No matter what anyone says, a house will cost you more than renting unless you're in a blighted area. Even if the monthly payments pen out, you WILL have to make your own repairs to the home and that will add up over time. The advantage to owning is that you can write off the interest portion of the loan and eventually have NO payment, which can be used for whatever you want down the road.


Repped

Thanks y'all

Working on paying off my credit cards now. Only got 4 grand
post #67 of 3338
Man this is the most useful thread on NT
post #68 of 3338
Crcballer dropping knowledge like he always does. Repped
post #69 of 3338
Quote:
Originally Posted by TVobach View Post
 

Can someone school me on how buying a house/paying a mortgage/getting a loan works exactly? Might be moving (job relocation/promotion) and want to know if I have enough saved up to buy a home...

 

So, let's say I wanted to buy a $70,000 house (smaller midwest city)...how much would I need for down payment, how much would my mortgage be, loan from the bank? Any/all info is appreciated. Thanks in advance.

 

My dude did no reading of this thread at all

 

on a 70k house you would only need around  a income around 30k , probably less

 

 

Get a FHA loan with $100 down payment... find a agent to get you going

 

Mortage on a 70k house would be about $500

 

Quote:
Originally Posted by crcballer55 View Post
 

 

The mortgage company will want to know your average salary for the previous 2 years with pay stubs and know you have some kind of reserve established by bank statements and tax records. Typically, the lowest down payment you can get now is 5% with an FHA loan, but as I stated earlier, the MI on those is ridiculous, so I would stay away from that option if possible. The larger your down payment, the lower your mortgage insurance. If you put at least 20% down, you won't need any (unless you get a subprime loan). Also, just because a lender has the best rates, doesn't mean you want to go with them. Typically, your Realtor will have a list of preferred vendors they like to work with because he/she knows they can close on time. If you don't get your loan closed within the contractual period, there can be penalties assessed that can start costing you money and nullify the savings from that particular lender.

 

I like using the Bank Rate mortgage calculator since it gives graphs and detailed info http://www.bankrate.com/calculators/mortgages/mortgage-payment-calculator.aspx

 

My recommendation if you're moving, find a Realtor to help you find a rental for a year so you can learn the area. That way you'll know what areas best suit your needs and lifestyle before you jump into buying a home.

 

Not true.

 

The lowest on a FHA loan is $100 down payment up to 3.5%

 

To quailfy for the $100 down payment i believe the house have to be a HUD forclosed house or a fixer upper but they will give you like $10k to help fix up the house


Edited by Superb - 11/10/14 at 1:31pm
post #70 of 3338
Quote:
Originally Posted by Superb View Post
 
Quote:
Originally Posted by TVobach View Post
 

Can someone school me on how buying a house/paying a mortgage/getting a loan works exactly? Might be moving (job relocation/promotion) and want to know if I have enough saved up to buy a home...

 

So, let's say I wanted to buy a $70,000 house (smaller midwest city)...how much would I need for down payment, how much would my mortgage be, loan from the bank? Any/all info is appreciated. Thanks in advance.

 

My dude did no reading of this thread at all

 

on a 70k house you would only need around  a income around 30k , probably less

 

 

Get a FHA loan with $100 down payment... find a agent to get you going

 

Mortage on a 70k house would be about $500

 

Quote:
Originally Posted by crcballer55 View Post
 

 

The mortgage company will want to know your average salary for the previous 2 years with pay stubs and know you have some kind of reserve established by bank statements and tax records. Typically, the lowest down payment you can get now is 5% with an FHA loan, but as I stated earlier, the MI on those is ridiculous, so I would stay away from that option if possible. The larger your down payment, the lower your mortgage insurance. If you put at least 20% down, you won't need any (unless you get a subprime loan). Also, just because a lender has the best rates, doesn't mean you want to go with them. Typically, your Realtor will have a list of preferred vendors they like to work with because he/she knows they can close on time. If you don't get your loan closed within the contractual period, there can be penalties assessed that can start costing you money and nullify the savings from that particular lender.

 

I like using the Bank Rate mortgage calculator since it gives graphs and detailed info http://www.bankrate.com/calculators/mortgages/mortgage-payment-calculator.aspx

 

My recommendation if you're moving, find a Realtor to help you find a rental for a year so you can learn the area. That way you'll know what areas best suit your needs and lifestyle before you jump into buying a home.

 

Not true.

 

The lowest on a FHA loan is $100 down payment up to 3.5%

 

To quailfy for the $100 down payment i believe the house have to be a HUD forclosed house or a fixer upper but they will give you like $10k to help fix up the house

 

$100 down is a Florida only program through HUD http://portal.hud.gov/hudportal/HUD?src=/states/florida/homeownership/affordablehomes

 

Everywhere else 3.5% is the minimum for FHA. Conventional is 5%.

post #71 of 3338
70k houses ? damn... that's dirt cheap, and i ain't even rich. eek.gif
post #72 of 3338
Quote:
Originally Posted by 23kickz View Post

70k houses ? damn... that's dirt cheap, and i ain't even rich. eek.gif

 

Try Detroit. Park a car in front of the home and you're triple the value. :lol

post #73 of 3338
lol i know about detroit. but that's cause their bankrupt and the economy there is in the dumps. you can probably find abandon houses for a few hundred bucks in detroit.
post #74 of 3338
I'd stay away from an FHA loan unless you really need to buy that first home, those MIPs are no joke especially now from the upfront MIP to the annual MIP that will cost you thousands of your hard earned money over the life of the loan.
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post #75 of 3338
Quote:
Originally Posted by 23kickz View Post

70k houses ? damn... that's dirt cheap, and i ain't even rich. eek.gif

Midwest man. I am 23, just got married. Just want a 2 bedroom house that is nice but also needs fixing up a bit and then sell once I start having kids.

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post #76 of 3338
Bought a house 3 weeks ago in Seattle. Got married the day after....

the past 30 days have been crazy laugh.gif

4 bedroom.

$400,000

My wife & I had been saving for the last couple of years.
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post #77 of 3338
Congrats on the purchase and marriage - well wishes.

Where in Seattle?
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post #78 of 3338
I just looked into FHA's loans. I was thinking about going that route but I'm definitely not now. You have to pay mortgage insurance for the life of the loan even if you pay the house off in half the time. sick.gif

At least with a conventional loan you can cancel it when you have 20% paid.
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post #79 of 3338
This an A+ thread.

I'm thinking of going to a local credit union looking into a home loan as a first time homebuyer.

The thing is my credit is in the ***** but have a stable career/income. My credit is really bad, able to do about $10,000.

I wonder how it would go?
post #80 of 3338
post #81 of 3338
Quote:
Originally Posted by TVobach View Post
 

Midwest man. I am 23, just got married. Just want a 2 bedroom house that is nice but also needs fixing up a bit and then sell once I start having kids.

If you don't mind St. Louis (you said Mid-West), you can get houses for taxes owed alone.

 

The only problem is their in the hood, BUT for investment purposes...it's gold.

post #82 of 3338
Quote:
Originally Posted by crcballer55 View Post
 

 

$100 down is a Florida only program through HUD http://portal.hud.gov/hudportal/HUD?src=/states/florida/homeownership/affordablehomes

 

Everywhere else 3.5% is the minimum for FHA. Conventional is 5%.


Wrong again sir

 

I bought my house on the FHA $100 down and i do NOT live in Florida/ And The $100 down is a FHA Hud loan. it is restricted to hud forclosed homes only

 

https://homes.yahoo.com/news/4-ways-to-pay-down-your-mortgage-172117215.html

Option #1: FHA $100-Down Program

Like the idea of putting down just one hundred bucks to buy a house? The FHA $100 Down Program may be just what you need. But is $100 really all that's required?

 

my 2nd home was a USDA 100% financing loan

Option #4: USDA Home Loan

If you're not much of a city slicker and instead dream of a home in a rural area, a USDA loan may be a good option for you. Why? Well, for starters it doesn't require any money down, says Bakke.

Under this program, officially known as the USDA Rural Development Single Family Housing Guaranteed Loan, the closing costs can be financed as well, notes Bakke.

post #83 of 3338
Quote:
Originally Posted by TVobach View Post
 

Midwest man. I am 23, just got married. Just want a 2 bedroom house that is nice but also needs fixing up a bit and then sell once I start having kids.

Go with a FHA $100 Hud Home plus they give you like an extra 10k to fix it up a bit

 

Quote:
Originally Posted by Dam itz Lou View Post

I just looked into FHA's loans. I was thinking about going that route but I'm definitely not now. You have to pay mortgage insurance for the life of the loan even if you pay the house off in half the time. sick.gif

At least with a conventional loan you can cancel it when you have 20% paid.

 

No not really. i was about to get my PMI off after some time on a FHA..

 

You have to have like 20% equity and if you multiply your remaining loan  * 1.25 and your house is worth more then that, you can get PMI removed... PMI isnt that much anyways. anywhere from $40 to about $100

post #84 of 3338
Recently ? From what I read, they changed it early last year.
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post #85 of 3338

Let me say as well if you got cash anywhere from 20k to 50k or even half of 50k and get the other 25k financed you can buy some decent homes

 

check this out. These are hud homes that were sold recently

 

The way it works usually with finance you get approved up top a certain amount. If you catch a good deal you save

 

https://www.hudhomestore.com/Listing/BidResults.aspx?pageId=1&sPageSize=&caseNumber=&zipCode=&city=&county=&sState=TN&street=&OrderbyName=SCASENUMBER&OrderbyValue=ASC&sLanguage=ENGLISH

post #86 of 3338

If you haven't bought a house this year or late last year then you should keep your responses as merely opinion from PAST experience.

 

The mortgage business is hard on homebuyers now. No more perusing over applications, and fast tracking them thru. You need to have a steady source of income for at least 2 years, your debts (car payments, credit cards) kill your chances even more.  Gone are the days of $0 down.

 

Banks don't need mortgages at the moment. They're getting a steady stream of cash buyers buying up all their foreclosures and short sales.

post #87 of 3338
Quote:
Originally Posted by Edshoecator View Post
 

If you haven't bought a house this year or late last year then you should keep your responses as merely opinion from PAST experience.

 

The mortgage business is hard on homebuyers now. No more perusing over applications, and fast tracking them thru. You need to have a steady source of income for at least 2 years, your debts (car payments, credit cards) kill your chances even more.  Gone are the days of $0 down.

 

Banks don't need mortgages at the moment. They're getting a steady stream of cash buyers buying up all their foreclosures and short sales.


Wrong Wrong

 

There are $0 down programs. It is called USDA Government Rural loans. I have one and my cousin got one.

 

There is also FHA $100 down which is basically $0 really

 

Also my cousin was able to get his home and move in within a 2 month time.. Last year he starting looking around end of october, and he moved in my christmas. He bout a 50k house that was worth more but used the FHA loan to fix up the place to his liking since he need work. Save alot of money

 

Also FHA will give you now up to 60k to fix a hud house on top of your loan

 

The Title I program insures loans to finance the light or moderate rehabilitation of properties, as well as the construction of nonresidential buildings on the property. This program may be used to insure such loans for up to 20 years on either single- or multifamily properties. The maximum loan amount is $25,000 for improving a single-family home or for improving or building a nonresidential structure.

 

For improving a multifamily structure, the maximum loan amount is $12,000 per family unit, not to exceed a total of $60,000 for the structure. These are fixed-rate loans, for which lenders charge interest at market rates. The interest rates are not subsidized by HUD, although some communities participate in local housing rehabilitation programs that provide reduced-rate property improvement loans through Title I lenders.

post #88 of 3338

So FHA loans are a no go? I was going to go that route when purchasing my first home for the 3.5% down.

post #89 of 3338
Quote:
Originally Posted by BeezyGotSole View Post
 

So FHA loans are a no go? I was going to go that route when purchasing my first home for the 3.5% down.


Why do you say that?

post #90 of 3338
Quote:
Originally Posted by Superb View Post
 


Wrong Wrong

 

There are $0 down programs. It is called USDA Government Rural loans. I have one and my cousin got one.

 

There is also FHA $100 down which is basically $0 really

 

Also my cousin was able to get his home and move in within a 2 month time.. Last year he starting looking around end of october, and he moved in my christmas. He bout a 50k house that was worth more but used the FHA loan to fix up the place to his liking since he need work. Save alot of money

 

Also FHA will give you now up to 60k to fix a hud house on top of your loan

 

The Title I program insures loans to finance the light or moderate rehabilitation of properties, as well as the construction of nonresidential buildings on the property. This program may be used to insure such loans for up to 20 years on either single- or multifamily properties. The maximum loan amount is $25,000 for improving a single-family home or for improving or building a nonresidential structure.

 

For improving a multifamily structure, the maximum loan amount is $12,000 per family unit, not to exceed a total of $60,000 for the structure. These are fixed-rate loans, for which lenders charge interest at market rates. The interest rates are not subsidized by HUD, although some communities participate in local housing rehabilitation programs that provide reduced-rate property improvement loans through Title I lenders.

 

You're wrong.

Quote:

 

Sales incentives (Florida only):

  • $100 down payment - for qualifying owner-occupant buyer with FHA financing only
  •  

adding

 

Quote:
"These programs typically come with a higher interest rate, but for the right borrower [they] are a great alternative to renting," says Anthony Van ****, president of ALV Mortgage in Salt Lake City, Utah.

 

Quote:

 

Another caveat? Borrowers using this program are restricted to buying a HUD foreclosure.

"A HUD home is a 1-to-4 unit residential property acquired by HUD as a result of a foreclosure action on an FHA-insured mortgage," says the HUD website. HUD becomes the property owner and offers it for sale to recover the loss on the foreclosure claim." Additionally, the borrower must purchase the home through the regional HUD office, which must be offering the $100 down only incentive.

Additionally, buyers may pay more than the home is worth if there is a bidding war for the home, says Bakke. If the bidding price exceeds the home's value, the buyer will have to come up with the difference between the sale price and HUD's appraised value on their own, he says. Bakke adds that the FHA arranges for an appraisal, so homebuyers don't need to get one on their own.

"So if the [HUD] appraised value of the property is $100,000, but the winning bid is $115,000, then the buyer must bring the $100 plus the $15,000," Bakke explains.

 

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