Home Buying & Real Estate Thread

12,093
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Joined Feb 12, 2003
I am in a unique situation. The home that was owned by my grand parents was left to my aunt, uncle and father. My aunt has 2/3rd of the house and my uncle and father each have 1/6th. My aunt and father approached me with an offer I can not refuse. They will gift me their share of the house and I would only have to pay my uncle's portion. The only condition is that I have the same deal with my brother and sister if I ever sell the house. I get 2/3 and they each get 1/6. The house is currently valued at around 250K. So it would cost me roughly 42K. How should i go about this. Would a Realtor be able to draft this up, do i need to get a lawyer involved? Looking to get a mortgage of about 60K so that I could use the remainder to make improvements to the house.
Real estate attorney.
 
12,093
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Joined Feb 12, 2003
PMI (mortgage insurance for the lender in case of borrower default) is pretty low now if you're going conventional. However, if you get an FHA loan, the PMI is with you for the duration of the loan and it's pretty hefty too!

From experience, stay away from any California down payment assistance loans (CHDAP) too. I bought my first home in '08 with a down payment loan and they refused to allow me to refinance the first even though i was underwater and the rate was significantly higher than the going rate at the time.
Yeah but at least in Ca those are unsecured effectively with no clawback
 

superb

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I am in a unique situation. The home that was owned by my grand parents was left to my aunt, uncle and father. My aunt has 2/3rd of the house and my uncle and father each have 1/6th. My aunt and father approached me with an offer I can not refuse. They will gift me their share of the house and I would only have to pay my uncle's portion. The only condition is that I have the same deal with my brother and sister if I ever sell the house. I get 2/3 and they each get 1/6. The house is currently valued at around 250K. So it would cost me roughly 42K. How should i go about this. Would a Realtor be able to draft this up, do i need to get a lawyer involved? Looking to get a mortgage of about 60K so that I could use the remainder to make improvements to the house.
If your buying the house you won't need a lawyer or anything just buy it for 40k and give them their money. Once the house is in your name nothing else can be done. Just make sure you hold to you word.

No need for them to gift you anything just buy the house for 40k and put it in your name
 
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superb

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Is 10k in the bank and 6k in your 401k as a 24 year old be enough cushion to move into home ownership? For lets say a $1500/month mortgage? (Taking into consideration that your currently paying $1600/month rent and are comfortable with it)...mortgage would be 100% financed (no down payment)
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
 
5,701
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What's the PMI? Feel like I should know this.

I'm thinking about buying a condo here in the bay area to rent out. I'd continue living at my old man's home and collect the profit from the rental house and my job and repeating multiple times.

Gonna meet up with a Realtor early next year to see what they say about a first time homeowner deal. Hopefully that will help with my taxes too :smh:
Good luck my man. Im out here to towards the south east bay now stoll looming but its so expensive. Still waiting for things to slow down. Prices are crazy and we get little sq ft ojt here not to mention hoa's are crazy
 
54,755
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I really want to move out my uncle's house next summer, but it maybe until 2016 that I feel comfortable enough to move out.

I got about $20k saved up, but housing prices in NoVA. :smh:
 
3,949
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Joined Nov 16, 2001
Is 10k in the bank and 6k in your 401k as a 24 year old be enough cushion to move into home ownership? For lets say a $1500/month mortgage? (Taking into consideration that your currently paying $1600/month rent and are comfortable with it)...mortgage would be 100% financed (no down payment)
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.
 
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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?
 
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I just went through the process and closed on my first home. I saw earlier that one cat would rather rent and I personally disagree. Yes you have repairs that can be costly at times but your home is an investment which appreciates in value. I would rather pay my mortgage than paying someone else's by renting from them. Now I was fortunate and don't have to pay PMI because I served in the USMC and was able to get a VA loan which helped tremendously! Good luck to you guys trying to purchase a home.
 

superb

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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
 
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3,949
1,194
Joined Nov 16, 2001
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.
 
2,040
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Joined Feb 12, 2014
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.
 
3,949
1,194
Joined Nov 16, 2001
 
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.
 
2,040
469
Joined Feb 12, 2014
 
 
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. 
 
9,093
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Joined Aug 30, 2008
Worst thing you want is to pay 3 years of your mortgage and then default. If you've got a great job, maybe.

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

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
 

superb

Banned
5,042
935
Joined Jun 2, 2013
 
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
 
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
 
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3,949
1,194
Joined Nov 16, 2001
 
 
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
 
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%.
 
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Joined Nov 16, 2002
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.
 
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Joined Oct 3, 2003
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.
 
2,040
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Joined Feb 12, 2014
70k houses ? damn... that's dirt cheap, and i ain't even rich.
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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