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CosmicPal
03-31-2005, 11:08 AM
Cosmic is a dumbazz. Bad credit. Steady, underpaid job. Little investments here and there. And always breaking open the piggy bank for more money.

So, can I get a house?

Should I get a condo? A cool loft downtown? A fixer-uper kind of house?

Is there any chance for a guy who doesn't make much money and has the worst credit in the world to score his first property? Or am I stuck with renting as long as I live?

Seriously though, you guys are the best. I'd love to hear what some of you home-buyers have to offer for advice, particularly to someone who is considering purchasing his first home. Thanks....

Soupnazi
03-31-2005, 11:10 AM
In what capacity is your credit bad? High credit card debt? Or is it old history that was bad?

nmt1
03-31-2005, 11:12 AM
I bought my first house a couple of years ago with no down payment but I didn't have any credit problems. It doesn't hurt to check it out though. You might want to look at a loan from your state's housing development authority. That's where I got my mortgage. There are many lenders out there. Make sure you find a reputable one and contrary to what some say, don't buy too much house. Be realistic about your finances.

CosmicPal
03-31-2005, 11:17 AM
In what capacity is your credit bad? High credit card debt? Or is it old history that was bad?

The history....all past items are paid off.

But, the biggest ouch is the ever-present student loans that will take me a lifetime to pay off. :banghead:

Iowanian
03-31-2005, 11:19 AM
You can get a house, but you're going to get hosed on PMI, interest rates and closing costs.


I think I'm going to make an offer on my 2nd home today. I bought my first home cheap, remodeled it over 3 years, and will almost double my mon-ay.(we're not talking Big-California money...we're talking Down Payment + new garage money)

there is alot of "fixer upper" stuff that can be done for low cost (paint does wonders).......but be very cautious with Roof, Foundation, electric, windows, bathrooms and kitchens. Figure on spending 30% more than you anticipate on most any project.

Do a room at a time, as you can afford it.

SBK
03-31-2005, 11:21 AM
If your credit score is above 580 you should be able to get 100% loan. FHA guidelines are better than that. I'd talk to a good mortgage broker, key word, good, to find out where you stand.

If that doesn't work you can always buy a house on contract.

Also, make sure when you buy that you don't buy a dump. Those can be expensive.

My first house was a duplex, my wife and I lived on the cheap for our first year of marriage. With the other side rented your payment isn't crap, maybe 1 or 2 hundred a month. Then you can move out and keep the thing for extra income. Im selling mine now, but it's appreciated over 35% in 3 years, so it was a pretty good move by me I think.

KingPriest2
03-31-2005, 11:23 AM
So I take it that you have no derog activity on your credit report.

If not then you should be fine.

I have been a Mortgage broker for over 4 years now

580 is a benchmark for 100 percent but there are some that go down to 560

FHA does not look at credit scores.

KingPriest2
03-31-2005, 11:26 AM
Also there are many down payment assistance programs out there as well as bond money if availible in your area.

You could also have the seller pay for your closing costs

They way you are talking you should be fine for FHA.

Soupnazi
03-31-2005, 11:32 AM
The history....all past items are paid off.

But, the biggest ouch is the ever-present student loans that will take me a lifetime to pay off. :banghead:

Student loan debt is not a terrible thing. CC debt is much worse. An easy way to increase your credit score is increase your available credit. This can be done by gathering a few more cards, put nothing on them. They use your debt/available credit as a component to figuring your FICO score, so getting more available credit (without adding debt) will increase that component of your score.

You need to get a copy of your report from one of the 3 reporting services and clean up anything that's out of whack. Once you do those two things, see what you can get and don't overextend yourself. Sometimes saving up a little longer and putting 20% down to avoid PMI will get you a better house and put you in a better situation than rushing into it.

Hoover
03-31-2005, 11:34 AM
First off if you don't have a large amount of CC debt you will be fine. Banks really don't care that much about School loans. I think that including school loans they will let you have a up to a 58% debt to income ratio.

Also you don't have to pay PMI if you don't want to, Thats just throwing money away in my book.

Every bank I talked to is willing to let me do 80/20 split. 30 fixed of 80% of the loan, then a separat loan on the other 20%, it allows you to avaoid paying PMI.

Skip Towne
03-31-2005, 11:37 AM
I'm with SBK and the duplex. It is a dwelling unit for you but also an income producing property. Bankers love those and it should allay any fears about your credit rating.

KingPriest2
03-31-2005, 11:40 AM
Student loan debt is not a terrible thing. CC debt is much worse. An easy way to increase your credit score is increase your available credit. This can be done by gathering a few more cards, put nothing on them. They use your debt/available credit as a component to figuring your FICO score, so getting more available credit (without adding debt) will increase that component of your score.

You need to get a copy of your report from one of the 3 reporting services and clean up anything that's out of whack. Once you do those two things, see what you can get and don't overextend yourself. Sometimes saving up a little longer and putting 20% down to avoid PMI will get you a better house and put you in a better situation than rushing into it.

The way it sounds his credit score should be fine.. but that is good advice.

Open up no more then 3 credit cards and do not go over 50 percent of the balance. Also do not open up any store department or gas cards. When you open the credit cards more then likely the credit score will go down but after 12 months it should be higher then what is was before.

If you have any recent collections pay those off. Do not pay off collections older then 2 years until you close. It brings the collection to present day and makes your credit score worse.

YOu can get a 80/20 loan and avoid MI. You could get a rate around 6% and a Heloc on the 2nd.

If your credit is low and you have to go non conforming most 100% loans do not have PMI. ONly the conforming loans This is people with A credit.

KingPriest2
03-31-2005, 11:43 AM
First off if you don't have a large amount of CC debt you will be fine. Banks really don't care that much about School loans. I think that including school loans they will let you have a up to a 58% debt to income ratio.

Also you don't have to pay PMI if you don't want to, Thats just throwing money away in my book.

Every bank I talked to is willing to let me do 80/20 split. 30 fixed of 80% of the loan, then a separat loan on the other 20%, it allows you to avaoid paying PMI.

I have never heard that about students loans and the debt ratio. Most lenders count that against you and they still have to follow their debt ratio guidelines. There are some lenders that do go up to 50-55% debt ratio.

Hoover
03-31-2005, 11:45 AM
If you have student loans as part of your overall debt, they allow the ration to be higher, the banks I talked to went to 58%

KingPriest2
03-31-2005, 11:46 AM
If you have student loans as part of your overall debt, they allow the ration to be higher, the banks I talked to went to 58%


Interesting. I work with over 700 lenders and none of them do that. Banks maybe.

Hoover
03-31-2005, 11:49 AM
Interesting. I work with over 700 lenders and none of them do that. Banks maybe.
I'm going throught the process and thats what I was told

NewChief
03-31-2005, 11:50 AM
Have fun buying a house in Colorado.

ROFL

My wife and I started shopping around for houses out there. That experience was one of the reasons we moved back to Arkansas.

Hoover
03-31-2005, 11:50 AM
I have delt with only Credit Unions and Local Banks.

CosmicPal
03-31-2005, 11:59 AM
Have fun buying a house in Colorado.

ROFL

My wife and I started shopping around for houses out there. That experience was one of the reasons we moved back to Arkansas.

Just curious. What was so bad about it?

I'd love to move back to KC and purchase a home there rather than in Colorado, but that would mean having to find another source of income.

KingPriest2
03-31-2005, 12:00 PM
I'm going throught the process and thats what I was told

Cool.

NewChief
03-31-2005, 12:03 PM
Just curious. What was so bad about it?

I'd love to move back to KC and purchase a home there rather than in Colorado, but that would mean having to find another source of income.

Basically the cost. Another couple that were our friends out there were also looking at the same time. Their families are in Ft. Collins, so they were going to buy in Colorado regardless. They ended up getting half of a duplex in a retirement subdivision for $175,000.

My wife and I got a 3 bedroom 1950s ranch, backing up into about 20 acres of undeveloped woods for $120,000 in Arkansas.

We just couldn't justify the cost of living. We loved living in Colorado, but it was way too expensive.

Iowanian
03-31-2005, 12:51 PM
I've been digging around a little for money for the house I'm considering an offer.(we like it, the contract with the realtor is up next friday, they have another home bought and are nervous)..a good position for a buyer(me).

I'm hearing from banks
6.25-6.6ish interst on in-house loans-30yr, 20% down without buying a half point. Closing costs around 1k.

Other options I'm hearing are on 5-1 adjustable, 80% down at 6.1% with a half point down to 5.6.

They're saying 2ndary lendors closing costs will about double.

Assuming I might be in the new house 1-5 years(could be longer, could be not) Is it foolish to take the 5-1 adjustable(2point max per year after 5 if rates go ballistic, cap at 12%..horrible I know)

I have the 20%, and a house thats not on the market yet with great equity, and A+ credit. I'd rather not gut my savings, for some family things as well as Upgrade work.........maybe borrow 2ndary 10% until house sells.

30 year Fixed with .5% higher interest or 5 year adjustable? which would I want?

CosmicPal
03-31-2005, 01:00 PM
They ended up getting half of a duplex in a retirement subdivision for $175,000.

Bleh...I feel for them. I would have waited until something better came along. For instance, I found an absolutely beautiful loft w/all the amenities in Lodo (Downtown, Denver) with stainless steel fridge and hardwood floors, brick interior. It's gorgeous, and it's going for $175,000.

My wife and I got a 3 bedroom 1950s ranch, backing up into about 20 acres of undeveloped woods for $120,000 in Arkansas.

That's sweet!

We just couldn't justify the cost of living. We loved living in Colorado, but it was way too expensive.

Understood. It's a beetch to live out here if you don't make a considerable amount of money.

sd4chiefs
03-31-2005, 01:00 PM
For $750,000 you can get a 3 bedroom 1600 sq ft house in $an Diego. :rolleyes:

KingPriest2
03-31-2005, 01:09 PM
Cosmic there are lenders that do Interest only and you could get into the house with a 1% rate. It would go up 7.5% of the payment each year. The actual rate right now is 5.6% You would make 2 payments of month (half and half). You could have it paid off in 23 24 years.

This allows people to get into a bigger house. BUt it is not 100% LTV it is 90-95%. LTV.

Hoover
03-31-2005, 01:22 PM
I've been digging around a little for money for the house I'm considering an offer.(we like it, the contract with the realtor is up next friday, they have another home bought and are nervous)..a good position for a buyer(me).

I'm hearing from banks
6.25-6.6ish interst on in-house loans-30yr, 20% down without buying a half point. Closing costs around 1k.

Other options I'm hearing are on 5-1 adjustable, 80% down at 6.1% with a half point down to 5.6.

They're saying 2ndary lendors closing costs will about double.

Assuming I might be in the new house 1-5 years(could be longer, could be not) Is it foolish to take the 5-1 adjustable(2point max per year after 5 if rates go ballistic, cap at 12%..horrible I know)

I have the 20%, and a house thats not on the market yet with great equity, and A+ credit. I'd rather not gut my savings, for some family things as well as Upgrade work.........maybe borrow 2ndary 10% until house sells.

30 year Fixed with .5% higher interest or 5 year adjustable? which would I want?
I think I would jump into the fixed, even if you think you might only be there for 5 years. If anything you might want to cinsider a 15 year toi get a better rate.

My wife and I both have A+ credit, we have about 50K in School loans (Law School). My thought is take the 30 year and finance the entire thing. 80% of the loan on a fixed 30 year, I can get 5.85 today. Then 20% on a Home Equity loan for 15 years fixed at just a higher rate. You make two payments, but you build equity faster, and you avioid PMI.

Iowanian
03-31-2005, 01:26 PM
I'm not paying PMI. I refuse.

I'll be looking at 80%, and either fork over 20% and hope my current home sells fairly quickly(I think it will due to location, improvements and price range).

You're talking better Interest than I'm hearing. We both also have A+ credit, good equity and low debt. I'll get a 30 year and make 25 year payments........cut YEARS off the loan.

If you've got some loan options with that kind of terms, you could PM them if you wanted. I'm interested.

Bill Lundberg
03-31-2005, 02:05 PM
I'm going throught the process and thats what I was told


I manage a mortgage company and the only way lenders will go over 55% is if they are willing to make an exception. On the other hand, I have run DU (Desktop Underwriter) and gotten approvals with over 60% DTI, it all depends on the compensating factors (Credit Score, LTV, Amount of Reserves, etc.)

Iowanian
03-31-2005, 02:09 PM
Lundbergeffedher,

I often wonder when they're really giving me the best interest rates they can.

What should a guy be expecting TODAY for a good int rate on 25-30 years and above listed criteria?

What do you think about the 30 year fixed vs 5yr adjustable for a point less interest?

KingPriest2
03-31-2005, 02:11 PM
I manage a mortgage company and the only way lenders will go over 55% is if they are willing to make an exception. On the other hand, I have run DU (Desktop Underwriter) and gotten approvals with over 60% DTI, it all depends on the compensating factors (Credit Score, LTV, Amount of Reserves, etc.)


Hey when where you promoted?

Hoover
03-31-2005, 02:11 PM
Lundbergeffedher,

I often wonder when they're really giving me the best interest rates they can.

What should a guy be expecting TODAY for a good int rate on 25-30 years and above listed criteria?

What do you think about the 30 year fixed vs 5yr adjustable for a point less interest?
The rate at my Credit Union is 5.85 with no points

Saulbadguy
03-31-2005, 02:12 PM
Question for the real estate gurus here:

I bought a Condo a couple years back, and used a convetional loan. Am I still eligible for an FHA loan for my next house? If not, can my GF be the primary name on the loan and I could co-sign and get an FHA, since she has not bought a house?

Iowanian
03-31-2005, 02:12 PM
...and the credit union I called yesterday said 6.625.

Thats why I thought I was getting the feeling he was trying to lay some pipe.

Hoover
03-31-2005, 02:12 PM
http://www.uiccu.org/asp/products/product_3_1.asp

Hoover
03-31-2005, 02:13 PM
...and the credit union I called yesterday said 6.625.

Thats why I thought I was getting the feeling he was trying to lay some pipe.
that is a nasty rate

Bill Lundberg
03-31-2005, 02:13 PM
Hey when where you promoted?


January 1. This Year.

Iowanian
03-31-2005, 02:14 PM
awesome Hoover.........Do you have to be a student or Employee to participate there?

Some CUs seem pretty selective of membership, and others don't.

Saulbadguy
03-31-2005, 02:14 PM
...and the credit union I called yesterday said 6.625.

Thats why I thought I was getting the feeling he was trying to lay some pipe.
They have been raised recently.

KingPriest2
03-31-2005, 02:16 PM
...and the credit union I called yesterday said 6.625.

Thats why I thought I was getting the feeling he was trying to lay some pipe.


IT depends on the banks. lenders investors, and the area of the country you live in.

The best I have seen on a 30 year today is around 6

Hoover
03-31-2005, 02:17 PM
awesome Hoover.........Do you have to be a student or Employee to participate there?

Some CUs seem pretty selective of membership, and others don't.
I'm a member, but the worst thing you would have to do is put some cash in an account. They are just getting into Home Loans by the way.

Hoover
03-31-2005, 02:18 PM
They didn't ask us anything when we joined, we needed a bank in Iowa City and Grinnell and that was the only one that worked.

KingPriest2
03-31-2005, 02:20 PM
January 1. This Year.


Congrats. So do you work for a company similar to Beneficial and Asociates where the Mgrs don't own the branch? I work for a national broker and the mgr owns the branch.

Phobia
03-31-2005, 02:22 PM
Basically the cost. Another couple that were our friends out there were also looking at the same time. Their families are in Ft. Collins, so they were going to buy in Colorado regardless. They ended up getting half of a duplex in a retirement subdivision for $175,000.

My wife and I got a 3 bedroom 1950s ranch, backing up into about 20 acres of undeveloped woods for $120,000 in Arkansas.

We just couldn't justify the cost of living. We loved living in Colorado, but it was way too expensive.

My brother is in the process of buying his first home in Denver. They're paying $225k for a dinky 2200 sq foot home.

I've seen pictures and that house might fetch $140k in KC. Maybe.

Bill Lundberg
03-31-2005, 02:26 PM
Lundbergeffedher,

I often wonder when they're really giving me the best interest rates they can.

What should a guy be expecting TODAY for a good int rate on 25-30 years and above listed criteria?

What do you think about the 30 year fixed vs 5yr adjustable for a point less interest?


Today the par rate is 5.75% on a 30 Year Fixed. 5.625% on a 20 Year Fixed, and 5.375% on a 15 Year Fixed.

As for the second question, I currently have about 3 years left on my 5 year ARM and I love it, I'm currently paying 3.75% and by the time that is over, I will sell the house and move into something a little nicer. I think they are great if you know you're not going to be in the house for the long term.

Look at the numbers:

I don't know what loan amounts we are talking but I'll use $100,000 for example.

30 Year Fixed at 5.875%
PI Payment = 591.54
Balance After 5 Years = $92,909.44

5/1 ARM at 5.125%
PI Payment = $544.49
Balance After 5 Years = 91,990.32

Total Savings = $919.12

In this case I would probably do the fixed, because the savings aren't enough to offset the risk of the rate going up if you get stuck in the house and can't move or refi. If you want me to look over anything and give you advice on whats legit and what is junk or just run some numbers for you let me know. PM me preferably, I'm not licensed in Iowa, but I can at least shoot you straight.

Iowanian
03-31-2005, 02:26 PM
"dinky 2200' home"

I must live in that home's doghouse.


Lundburg.....ummmyeah....thanks..that would be great.

Bill Lundberg
03-31-2005, 02:30 PM
Congrats. So do you work for a company similar to Beneficial and Asociates where the Mgrs don't own the branch? I work for a national broker and the mgr owns the branch.


No, we are a small company with 6 offices around the Midwest, managers do not own the branch. I would prefer to never again be compared to the con artists known as Beneficial!! :)

Phobia
03-31-2005, 02:32 PM
"dinky 2200' home"

I must live in that home's doghouse.


Lundburg.....ummmyeah....thanks..that would be great.

With 2 kids?

My first home was 2700 sq ft.

Hoover
03-31-2005, 02:33 PM
"dinky 2200' home"

I must live in that home's doghouse.


Lundburg.....ummmyeah....thanks..that would be great.
I thought the same thing, The house I'm buying is 2800 sqft

Hoover
03-31-2005, 02:35 PM
Plus its hard to find a house that is over 2000 sqft in this area. Every thing is small if you ask me, 3000 sqft is what I would really like, but the pickings are too slim

Iowanian
03-31-2005, 02:39 PM
With 2 kids?

My first home was 2700 sq ft.

My Current home is 1100'

I'd be thrilled with a castle that size.

Phobia
03-31-2005, 02:42 PM
My Current home is 1100'

I'd be thrilled with a castle that size.

Yeah, but you bought it as a single dude.

Iowanian
03-31-2005, 02:43 PM
True.

Interestly enough...I saw this relevant Article on MSN's front page.

Finding the Right Mortgage Loan
Fixed-Rate Mortgage
Among the hundreds of choices of home loans and financing, how do you know where to start? Clue: Your finances and assets play a part, and your personal style has more importance than you may think.


The loan types covered here don't begin to address all the options, so ask your lender about variations and updates that fit your situation. Meanwhile, here's an overview of the basics that most loans are built upon.


Fixed-rate mortgage
This original conventional loan is still among the most popular. With fixed-rate loans, your interest rate is locked in at the start, so your monthly loan payments stay the same throughout the life of the loan. (Note that if you're lucky enough to lock in at a low interest rate, future buyers probably won't be able to assume the loan.)


Long-term fixed-rate loan. The most common of these carries a 30-year term. For the first years most of your payments get applied toward interest, which is tax-deductible. If your loan agreement allows prepayment without penalty, you can also make additional payments on the principal. (Tip: One extra payment per year enables you to pay down your loan almost as fast as a 15-year loan.)


Down payments are on the high side—10 to 20 percent, and increasingly the latter—but if you pay 20 percent you're exempt from paying high monthly private mortgage insurance. While payments are lower than for a short-term loan, long-term interest rates are generally higher: if you take out a $100,000 loan with 8 percent interest, you'll ultimately pay almost $100,000 more than for a 15-year loan. This is a good loan for buyers with a fixed, steady income or who can't afford the payments of a short-term loan.


Short-term fixed-rate loan. Short-term loans typically have 15-year terms, but the term can be as low as 10 years. As with their long-term cousins, the interest rate and monthly payment are set for the life of the loan. But interest is lower, you pay less than half the amount of total interest, and payoff is years quicker. So why would anyone not choose the short-term route? Monthly payments are substantially higher—approximately 15 to 30 percent—and the requirements for qualifying are more stringent.
Adjustable-Rate Mortgage
Unlike fixed-rate mortgages, ARMs carry an interest rate that's adjusted at specified intervals—generally one, three, or five years. The starting interest is lower (usually by 1 to 4 percent) than that of almost any other type of loan, which makes it a great option for cash-poor buyers or for those who expect to move in five to seven years.


But it's a gamble. Increases (or decreases) in your rate are tied to an economic index such as Treasury securities. At each interval—every five years for a five-year ARM —the rate is adjusted according to the index; additionally, the lender adds a margin of 2 to 3 percent. So if the index has taken a leap since your last interval, you could end up paying more per month than with a 30-year fixed-rate loan. But if you move out of your home within five years, or if the index rate drops, you can save a substantial amount of money over a fixed-rate loan.


ARMs include some protection for the borrower in the form of a lifetime cap, specified in your loan agreement. If an ARM has a lifetime cap of 5 percent, it means your interest rate will never be more than 5 percent higher than your originating rate, even if the index your loan is tied to exceeds 5 percent. You may also be offered, or negotiate for, a periodic cap, limiting the allowable increase at each interval. If possible, avoid including a payment cap in your loan agreement—it could result in negative amortization.


Ask your lender:
If you can prepay without penalty.
What your payments might reasonably be throughout the life of the loan.
If the ARM can later be converted into a fixed-rate loan and relevant fees.
What index your loan would be tied to; then check out its volatility and past performance.


Two-Step Mortgage
Sometimes called "hybrid mortgages" or "resets" because they combine qualities of ARMs and fixed-rate loans, two-step mortgages are relatively new on the scene and very popular. They are 30-year loans, referred to as 5/25s or 7/23s. (The only difference is the length of the loan term.) With a 5/25 (pronounced "five twenty-five"), for instance, your rate is lower during the first five years and then reset for the remaining 25 years. As with an ARM, the loan is tied to an index rate but with a lifetime cap of 6 percent over the original rate.


Although these loans carry some risk, they can also pay off, and you have the stability of fixed payments. If you know you'll be moving within five or seven years, you can save thousands of dollars with this type of loan, which can also adjust downward. It only becomes a raw deal if you stay too long and the index has had a sizable increase by the time your rate is reset.


Convertible or nonconvertible? Both 5/25s and 7/23s have this option. With a convertible two-step 5/25 loan, for example, your interest rate is fixed for the first five years, then converts into a fixed-rate loan for the ensuing 25 years. A nonconvertible 5/25 is reset after five years into a one-year ARM that adjusts annually for the next 25 years.


FHA Loans
FHA loans
Finance Tools

Get a home loan
Calculate your home's value





Available as one-year ARMs or 15- or 30-year fixed-rate mortgages, FHA loans are insured by the Federal Housing Administration and offer an attractively low down payment—as low as 3 percent. The mortgage insurance can be quite costly, but FHA loans have looser requirements; you may qualify for an FHA loan even if you have a past bankruptcy.


FHA loans were created to help first-time buyers and others who may not qualify for other financial options, but there's no requirement that your income be below a certain level or that you be a first-time buyer. There are limits, however, to the amount you can borrow. These limits are adjusted periodically. (In 1998, the basic limit was $86,317 for single-family homes and $170,362 in high-cost counties.) A co-buyer doesn't have to live on the premises, as with most conventional loans. In fact, you can often pay your down payment with gift money. FHA loans can be assumed from the seller, which is attractive to future buyers.


Sound too good to be true? Well, there is that high mortgage insurance. And in a hot seller's market, in which houses are in high demand, sellers are sometimes reluctant to work with FHA financing, occasionally rejecting FHA buyers outright. There may be more paperwork involved, which can slow down appraisals and reaching a settlement. And because an FHA loan can end up costing more than a conventional loan, some industry gurus recommend that you first try qualifying for a conventional loan or other financing.


VA-guaranteed loans
Strictly for veterans of the U.S. armed forces and in some cases their widows or widowers, these 30-year VA loans are guaranteed by the Department of Veterans Affairs. There's no monthly mortgage insurance premium, and in most cases no down payment is required. They include a choice of three repayment plans, including fixed-rate, and they usually have attractive lending terms. Prepayment is allowed without penalty, and the loans are assumable by other qualified veterans; you may have to requalify, however, if a buyer assumes your VA loan.


Note that fees can be steep, including credit report, survey title, VA appraisal, loan-origination, and recording fees. Since 1981 there's also been a VA funding fee (with an exemption for veterans who receive compensation for disabilities). In 2001, the fee for eligible first-time homebuyers ranged from 2 percent of the selling price for regular military to 2.75 percent for the Reserves or National Guard. (Reductions apply if you make a 5 or 10 percent down payment.) The funding fee for subsequent loans with zero down payment is 3 percent.


In other words, these loans aren't cheap, but they're useful if you're low on cash. They also have a high upper limit ($203,000 as of 2001), so you'll have more houses to choose from. To find out if you're eligible, check with your regional VA office or go to the Web for basics: http://www.homeloans.va.gov/lgyinfo.htm

Inspector
03-31-2005, 04:23 PM
I've heard it's a good idea to get a home inspection before you close on any house.

That's what I've heard....

Rain Man
03-31-2005, 04:26 PM
My brother is in the process of buying his first home in Denver. They're paying $225k for a dinky 2200 sq foot home.

I've seen pictures and that house might fetch $140k in KC. Maybe.


Where the heck are they buying? It's not in the city of Denver, I bet, unless it's out by the airport.

CosmicPal
03-31-2005, 04:34 PM
Where the heck are they buying? It's not in the city of Denver, I bet, unless it's out by the airport.

My thought too...wondered if they were buying something out in that Stapleton area.

DTLB58
03-31-2005, 04:34 PM
Well, you asked so here goes. I live by the philpsophies of Dave Ramsey and Dave says:

1.Never buy a house while you are still in debt. If you do, Murphy (i.e. Murphies law) will move in your spare bedroom and everything that can go wrong, will and then you will really have financial problems.

2.Your house payment should not be more than 25% of your take home pay.

3.Only get a 15 year fixed rate loan.

4. You do NOT need credit, good or bad to get a loan. Find a financial intitution where they do manual underwriting. There, they will look at the person and not just your credit score.

Phobia
03-31-2005, 04:35 PM
I dunno - are you saying that's high - or low?

Rain Man
03-31-2005, 04:40 PM
That's pretty low, at about $100 per square foot. Most parts of Denver are significantly higher than that.

You can buy some condos for that amount, I guess, now that I think about it. It's low for a house, though.

NewChief
03-31-2005, 08:19 PM
I dunno - are you saying that's high - or low?

Yeah, believe it or not, but that's low for a house there. Hence the reason we didn't buy out there. We probably would have, if we decided never to have kids. My wife and I could live by ourselves in a 900 sq.ft. hole. Heck, we've done it before. Kids change things, though.

Fat Elvis
03-31-2005, 08:39 PM
That's pretty low, at about $100 per square foot. Most parts of Denver are significantly higher than that.

You can buy some condos for that amount, I guess, now that I think about it. It's low for a house, though.

Just about any new home in the Larryville area is going for $100/square ft or more.....

Dave Lane
03-31-2005, 08:46 PM
Rent with an option to buy. No downpayment no credit check and if house prices go up you win. If they don't you move out.

Dave

SBK
03-31-2005, 10:12 PM
Well, you asked so here goes. I live by the philpsophies of Dave Ramsey and Dave says:

1.Never buy a house while you are still in debt. If you do, Murphy (i.e. Murphies law) will move in your spare bedroom and everything that can go wrong, will and then you will really have financial problems.

2.Your house payment should not be more than 25% of your take home pay.

3.Only get a 15 year fixed rate loan.

4. You do NOT need credit, good or bad to get a loan. Find a financial intitution where they do manual underwriting. There, they will look at the person and not just your credit score.

I disagree with most of this, but #2 and #4 are sensible. I would say never pay off your debt with your home, since you're just financing your debt for 30 years. Also I wouldn't get a 15 year loan, you'll do way better to get a 30 year loan and make the 15 year payment. Actually, with a 30 year loan if you make 13 payments a year instead of 12 you'll pay off the loan in 22 years.

recycle
04-01-2005, 03:46 AM
http://poetry.rotten.com/philippine-morgue/mpd2.jpg

Fat Elvis
04-01-2005, 07:09 AM
I disagree with most of this, but #2 and #4 are sensible. I would say never pay off your debt with your home, since you're just financing your debt for 30 years. Also I wouldn't get a 15 year loan, you'll do way better to get a 30 year loan and make the 15 year payment. Actually, with a 30 year loan if you make 13 payments a year instead of 12 you'll pay off the loan in 22 years.


I agree with you about the 30 vs 15 year mortgage. The key is to have the fiscal discipline to make the extra payments. Most people don't have that kind of discipline and that is why the 15 year mortgage is recommended, I think.

Kyle401
04-01-2005, 07:48 AM
You can find some more advice in this thread.

Link to Hoover's planet home buying thread (http://www.chiefsplanet.com/BB/showthread.php?p=2290867#post2290867)


Good luck with whatever decision you make.

Iowanian
04-01-2005, 08:10 AM
In an hour, I'm going to put an offer on a house....My April Fools of the day, is going to be to look the realtor dead in the eye and lay down a $500 check, and offer 25% of the price.

Then I'll do the serious one......

Hoover and Lundberg....thanks for the links and advice. Thats looking promising.

Hoover
04-01-2005, 08:16 AM
In an hour, I'm going to put an offer on a house....My April Fools of the day, is going to be to look the realtor dead in the eye and lay down a $500 check, and offer 25% of the price.

Then I'll do the serious one......

Hoover and Lundberg....thanks for the links and advice. Thats looking promising.
Hey I'm making my offer today as well. I want to yank her chain with the whole April Fools Day, but my wife thinks its funny but really mean. My offer is $25K below asking price.

Hoover
04-01-2005, 08:19 AM
Did you call UICCU and see if you have to be a member?

Iowanian
04-01-2005, 08:20 AM
I'm going about 20 under, but on a little less house than you.......the owners are nervous i think...have a new house built and take posession in a month, and have had no offers. Its overpriced, but a pretty good deal at mine. The 6 month contract runs out next friday. They're motivated, and I'm holding pocket KK with 1 on the flop, I think.

I don't have to do anything and won't unless the deal is a landslide in my favor.

You only have to open a savings account....$5 min, with 1 time $1 fee. The closing prices and rates are the best I've found.

I'm totally going to bust the baows of this lady realtor.

Good luck to the Hoovers.....

Hoover
04-01-2005, 08:35 AM
I'm going about 20 under, but on a little less house than you.......the owners are nervous i think...have a new house built and take posession in a month, and have had no offers. Its overpriced, but a pretty good deal at mine. The 6 month contract runs out next friday. They're motivated, and I'm holding pocket KK with 1 on the flop, I think.

I don't have to do anything and won't unless the deal is a landslide in my favor.

You only have to open a savings account....$5 min, with 1 time $1 fee. The closing prices and rates are the best I've found.

I'm totally going to bust the baows of this lady realtor.

Good luck to the Hoovers.....
The house I'm buying has been on the market for 8-9 months now, never had an offer, and I think I'm one of two people to look at it. The sellers bought a 300K house, so I'm sure they are motivated to get it off their hands.

I'm glad the UICCU thing worked out for you.

Iowanian
04-01-2005, 03:26 PM
Well, I don't know how you did Hoover, but I mouthed off and bought a house. A very iowani-friendly deal.

Dammit.......now I've got some work to do, a house to sell and a move.

Kyle401
04-01-2005, 03:56 PM
Well, I don't know how you did Hoover, but I mouthed off and bought a house. A very iowani-friendly deal.

Dammit.......now I've got some work to do, a house to sell and a move.

ROFL

I was just telling someone today that it's more fun to look and think about it than it is to actually buy. Once you buy, you have all that work to do. Not to mention you have to pay for it also.

Congrats on your new house! :thumb:

CosmicPal
04-01-2005, 03:59 PM
A lot of cheap property here:

http://www.foreclosure.com/

Iowanian
04-01-2005, 04:06 PM
I know I got a good deal, the seller made a sound like I twisted his nuts as he signed the offer.

CosmicPal
04-01-2005, 05:00 PM
Well, I'm glad I don't live in Manhattan

http://money.cnn.com/2005/04/01/real_estate/manhattan_apt.reut/index.htm?cnn=yes

Average Manhattan apartment: $1.21M

Apartment sale prices hit new record in 1Q as supply shrinks; up 26% from a year earlier.
April 1, 2005: 4:11 PM EST


NEW YORK (Reuters) - The average sale price for a Manhattan apartment topped $1.2 million in the first quarter, a new record, as the supply of properties for sale shrunk, according to an industry report.

The average sale price rose to $1.21 million -- up 23 percent from the final quarter of 2004 and up 26 percent from a year earlier -- according to the Prudential Douglas Elliman Manhattan Market Overview.

In the condominium sector, the average sale price jumped to $1.55 million -- exceeding $1.5 million for the first time -- and surging 34 percent from 2004's fourth quarter, the report said. The average condo sale price went up 22 percent from the year-ago first quarter.

For Manhattan's entire apartment market, the average price per square foot climbed to $910 -- topping $900 a square foot for the first time. That's up 16.7 percent from the fourth quarter of 2004. It's a gain of 28 percent from a year earlier.

"Improving economic conditions, a tight housing supply, rising incomes and the widely held expectation of rising mortgage rates in the near future, caused housing prices to surge this quarter," the report said.

It was the first time the quarterly report included Manhattan markets above 116th Street on the West Side and above 96th Street on the East Side.

The median sale price -- the point where half the sales are higher and half are lower -- climbed to $705,000. That's up 16.5 percent from the previous quarter and up 18.5 percent from a year ago.

The volume of apartment sales fell to 2,028 units -- down 6.2 percent from the previous quarter and down 5.8 percent from a year ago, according to the report.

Limited supply kept sales volume in check.

The average sale price of a cooperative apartment, in which an owner holds shares in the building and does not own the individual unit, rose to $988,746. That's up 15.5 percent from the previous quarter.

The average co-op sale price went up 25 percent from the first quarter of 2004.

Chief Henry
04-01-2005, 05:14 PM
Well, I don't know how you did Hoover, but I mouthed off and bought a house. A very iowani-friendly deal.

Dammit.......now I've got some work to do, a house to sell and a move.


Wow, that didn't take long!!! How many phone calls did you have to go back and forth with the real estate rep.

By the way, i'll have to wash my hair on your moving day..... :p


Nice job on your fixer upper investment. I have several clients that do that and they make $$$ each and every time. If you have the skill and talent to do that sort of thing it makes perfect sense. SOmeday you'll keep one of these fixer uppers and start your era as slum lord !!!

Iowanian
04-01-2005, 05:37 PM
I'm thinking about buying a couple of ghettos too.

It took a 2 block walk, twice and 2 phone calls....1 offer, their counter, my counter "take it or good luck"

Vegas_Dave
04-01-2005, 05:43 PM
FHA loan is what you want and frankly, I would not just settle on something.

Mainly from the aspect that if you settle now, you will want/need to buy again sooner, and then loans are tougher for the 2nd house.

Found a GOOD home and buy on an FHA.

Hog Rider
04-01-2005, 05:53 PM
Avoid FHA if at all possible. It is a deal buster for a lot of sellers. They are a real pain-in-the-tail!

If your agent can't point you to a lender that will do everything they can to accommodate your situation then dump them like a day old butt-load of hot buffalo wings, and find a competent agent (like my wife).

There are tons of creative financing options available these days that will not cost you an arm and a leg; or extra points or interest. You just need to be pointed in the right direction.

good luck,

JP

CosmicPal
04-01-2005, 06:10 PM
Sh*t, now I'm confused....

One guy's telling me to do this, and another pipes in and says that that's all wrong.