Finding a house....my story...let's hear yours.

[mcbean]

howdy

i would look into the usda first time buyer program.. they will grantee the loan, and drop your intrest rate down to 1%. you will have to have the house inspected by usda and it must meet their spec's, they will also look at your credit. but still you cant beat a 1% loan rate.

thats what we (wife and i did) when my medical problems took me out of worknow once i get back to work -i hope i hope, the 1% will go up to the reg rate but its still a good deal for us cause my credit is not good but the wifes is good.

she was given a max of 140 K to spend on a house- got a 3 bed room 2 bath full basement 1400 sq/ft up and 1400 sq/ft below with no inspections after the ones they do in the start to see if the house meets their spec's, with 3 kids it sure saved us so far and no we dont grow here because of the kids that wouldnt be right or safe for them.

i do wish you good luck in the house hunting its a pain the the back side.

peace

 

[Guest]

Actually, I try to stress that it not really the case (although what people believe....)

Really, starts with credit.....

Good credit and someone could not only go "no doc"...or "stated", but, can do so no money down, and, even further, can even get seller to kick in closing costs for them.......

One could even be unemployed with good credit and go no money down stated/no doc and have seller kick closing costs.......

Julian is right....the dude i spoke to asked me if I had 1000 right now to put on a house...as if he could "hook me up" right now..alas I do not, after spending several grand on a four wheel drive truck and a new riding mower...

 

[Julian]

Julian is right....the dude i spoke to asked me if I had 1000 right now to put on a house...as if he could "hook me up" right now..alas I do not, after spending several grand on a four wheel drive truck and a new riding mower...

That's the real world.............I live in it every day.........

The truth of the matter is, and, people think it's an exaggeration:
A house is easier to buy than a car these days.....

But , don't forget, as above.....today is only today............can spend time working on one situation, and, today has nothing to do with tomorrow....

I was just going to do a write up also in outdoor thread about what credit really is, and is for.....

How was your credit btw? What you thought? Better? Worse?

 

[Guest]

That's the real world.............I live in it every day.........

The truth of the matter is, and, people think it's an exaggeration:
A house is easier to buy than a car these days.....

But , don't forget, as above.....today is only today............can spend time working on one situation, and, today has nothing to do with tomorrow....

I was just going to do a write up also in outdoor thread about what credit really is, and is for.....

How was your credit btw? What you thought? Better? Worse?

better than I thought.
Since we already rented the house...we are going to save our money again...the next time I move, it will be into a home I own...


still waiting to hear back from him, he said to be house hunting....

 

[Julian]

Usually is....(better than you thought)...

Good, glad to hear all around...

(see, it really is that easy )

 

[Ram Beau]

Julian is a smart guy/gal.

You guys renting out there, don't worry about a down payment. Save your money to cover your mortgage until you get your first harvest going. 100% financing is the way to go. That way if something goes down, you have no liquid money tied up in it.

 

[coolx]

^^^ was going to say exactly the same thing .... you own the house, and it's just like paying rent, but with no inspections/hassle/worry and count it as a monthly expense with power, and you've nothing to lose in effect.

 

[Julian]

Should be noted the 100% stated and no docs have now disappeared due to lending industry issues.....(They do still have full documentation 100's I believe), and, also, still have 95% stated programs (You have to come up with the 5%, must have over a 680-700 or so score, but, can have seller kick you back....ask broker...if not...get a dba for company, open an account, and, have seller credit your company so you get your down back....)

Example:
I get a dba for 50 bucks for "ABC Company"........I make seller offer for 285k, but, let them know I will be making offer for 300k and be directing them to credit 15k of that to "abc company"...(ideally, contracting/construction so seller can say it is for previous work done)....

You close.....seller credit abc (which is you anyway ...and, your back at a no money down.......can actually take that further...ie: you offer 260k, but, tell them will be making offer 300k and w3anting them to credit abc company 40k......(of course, issue there is it does still have to appraise, so...have to play it right....)

 

[yamaha_1fan]

Julian I believe you are on the edge of mortgage fraud there. If big brother ever found out the buyer owned ABC, i think there would be issues. If a family member owned ABC, I think it would be in the clear.

You need, money, credit or income to get a house. Not all 3 but some combination. If you have a 500 score, no job and no money, nobodys giving you a house.. And as Julian pointed out, the clamps are being put down on the more creative products.

You could start a business and deposit the same $1000 over and over and over to show monthly deposits of 30,40, or 50k. I have done 2 loans based on business bank statements. They use 50% of the deposits for income and never consider withdrawls.


But damn, I need to find out where in the hell you can rent 10 acres for $550!!!! I would be so ALL OVER IT in a heartbeat!!!!!

 

[Julian]

True, but, technically, so are stated and no docs (which are basically entirely based on the principle of misstating ones income in order to achieve the LTV one needs...), and, so is purchasing another home with low LTV claiming owner occupancy...

Above scenario, credit is seller side. Would not be allowed by lender on buyers side.

 

[420inprogress]

Should be noted the 100% stated and no docs have now disappeared due to lending industry issues.....(They do still have full documentation 100's I believe), and, also, still have 95% stated programs (You have to come up with the 5%, must have over a 680-700 or so score, but, can have seller kick you back....ask broker...if not...get a dba for company, open an account, and, have seller credit your company so you get your down back....)

Example:
I get a dba for 50 bucks for "ABC Company"........I make seller offer for 285k, but, let them know I will be making offer for 300k and be directing them to credit 15k of that to "abc company"...(ideally, contracting/construction so seller can say it is for previous work done)....

You close.....seller credit abc (which is you anyway ...and, your back at a no money down.......can actually take that further...ie: you offer 260k, but, tell them will be making offer 300k and w3anting them to credit abc company 40k......(of course, issue there is it does still have to appraise, so...have to play it right....)

I'm not trying to pick a fight here but while I understand what you're trying to do, the example you give doesn't make financial sense.

First, if you work with a mortgage broker, youre going to pay anywhere from .5 to 1.5 points of the mortgage amount-better to work with a lender directly or get a government loan for first-time home buyers and save the $1500-$4500.
Second, lenders will lend an amount that is equal to either the market value of the house or the appraised value, but nothing above it (unless the housing market is so overpriced-then in that case, why would the seller want to extend credit to you when there are other buyers who can meet the seller's price?)
Third, by establishing a dba business and having the seller deposit the credit amount to that account, that credit will be treated as income-and you will have to pay state and federal taxes.
Fourth, by submitting an offer above the asking price, the difference in mortgage payments will be such that you're actually losing money. For example, a $15,000 difference extended over 30 years, at say 7%, will end up costing you $100 more per month in mortgage payments, for a total of $36,000 over the life of the mortgage (remember you pay interest only for the first 15 or so years and then slowly pay the principle).

From my experience, it is better to do this:
Find the market value AND appraised value of the house.
If the market or appraised value is above the seller's asking price, make an offer for the market or appraised value and ask the seller to extend to you credit for the difference from the asking price. Use this as the down payment.
If the market or appraised value, however, is below the asking price, make an offer for the asking price and ask the seller to extend to you credit for the difference from the market or appraised value.
In either situation, seller receives 100% of asking price, seller provides you with down payment, and at closing, you have equity in the house. And while owner-occupant requirements vary by state, minimum length of tenancy by owner is 1-2 years.

 

[kinesis]

if u can find a place where the landlord is a) cool with growing and b) isnt gonna rob your ass and take your crop

thats some serious f**king luck... ive been looking here in so cal for a long assed time, theyre too conservative down here -plain and simple.

 

[Julian]

I'm not trying to pick a fight here but while I understand what you're trying to do, the example you give doesn't make financial sense.

Actually, it does. It enables a 100% LTV (including closing costs) on a 95%..(due to they have pulled the 100's.)

I've also done this on many flips, so I can not only buy, but have seller put up my construction costs so basically entire project done without a dime out of my pocket.

From my experience, it is better to do this:
Find the market value AND appraised value of the house.

Appraisals are very misunderstood.

I'm sure your experience would find it interesting the the appraised value is always what it needs to be (purchase, refi,etc...)

15 years I have never seen an appraisal $1 over what it had to be .

(It's actually funny, because you see people selling trying to use appraisals over market that they got from a previous refi where they had to hit , say, 70% LTV ...)

Appraisals come in where they have to....and can, and are manipulated to a reasonable agree to have that figure come in.

Regarding the above about fee's. Everyone makes a fee.(Most under the impression banks do not. They do.)

If the market or appraised value is above the seller's asking price, make an offer for the market or appraised value and ask the seller to extend to you credit for the difference from the asking price. Use this as the down payment.

Program guidelines determine if that is possible or not. (Some allow all or a portion, others allow none. Varies and depends on specific underwriting guidelines attached to that loan....)

Some lost track of what "market value" is. To put is short and simple:
It is what a ready, willing, and able buyer" will pay. Nothing more, nothing less. (ie: So, someone can sit with their property on the market for a year, and, they can show their appraisal , and, claim it's worth X all they want. If it was, it would have sold.

If the market or appraised value, however, is below the asking price, make an offer for the asking price and ask the seller to extend to you credit for the difference from the market or appraised value.

Appraisal not know until after purchase, as lender orders for the financing....

Concept above was essentially to work it down from what one believes to be roughtly the true value..(if too high, won't appraise. As above...appraisals are "worked"....a little?...They can cover it. a lot? They cannot...depends on property...(ie: something 200-300k?...Maybe they can stretch and work it 15k.....something 700k?...would be easier to work it to 50-60 difference, etc....)

In either situation, seller receives 100% of asking price, seller provides you with down payment, and at closing, you have equity in the house. And while owner-occupant requirements vary by state, minimum length of tenancy by owner is 1-2 years.

As above, depends on program. Some will allow all, some, or none. Depends on that specific program (loans) guidelines...(target of my points were 0 down..or 0 for any improvements, all kicked back and reason for above would be when it is not allowed under that program. (ie: In those that seller contribution or otherwise is?...There would be no other reason to...

Owner occupant requirements would be determined by the lender/loan. (Those are also much more flexible than one would believe. Someones employment, location, family situation may very well change the next day....lender is not going to raise an issue if it is paid.....I've seen it done 100 times....ie: Let's say someone buys something 100% ltv and calls for occupancy within 60 days and at least a year....well, as above...peoples lives change....so, that situation has a 50/50 chance of having to buy something else and rent it out (because you could not sell and cover sale ....)

Happens all the time....

I thought I would add and backtrack a little:

First, if you work with a mortgage broker, youre going to pay anywhere from .5 to 1.5 points of the mortgage amount-better to work with a lender directly or get a government loan for first-time home buyers and save the $1500-$4500.

1. If one has the credit and documentation to go directly through bank, most will not offer such programs....(100% ltv's ful docs,100% stated,95% stated/no docs, no docs, etc... etc) Role of brokers underrated....they have hundreds of lenders to choose from with thousands of programs..

2.Gov. programs, while they may appear favorable, may have the mort. insurance premiums also attached and added on which may exceed any minimal lender charge by quite a bit...

3. What lenders make, how they make it, is also misunderstood. No one makes a loan for free...there are 4 different ways it can be tacked on.....so......any cost to obtain a loan is minor..(I would also say no one should ever let themselves be charged more than a half a point somewhere (back end better than shelling out on front end..)

 

[Guest]

Granma has an update...

Granma has an update...

Well, we are all moved in...i hate moving, but imagine moving a hundred miles away using a car and a pickup truck...it took days and days and many trips...but we got it done. I had a friend from one of the horse BB's I belong to offer the use of her two horse trailer...to move my horses. I had never driven a truck and trailer before, but I got them there in one piece..

things could be much better, though, we depleted our nest egg...broke as hell now...I got a job milking cows, but OMG...I hate milk even more after seeing what goes on milking parlors...sick, lame, injured cows with open sores...they never get to go outside and just be a cow and eat grass, they spend their entire life in a barn, being milked three times a day...they get beat on a lot because they are miserable and do not want to come in to be milked.


We got the room up and going... a bagseed grow..did not have the time or money to order beans...this will have to do for now.

Talk about jonesing...none of have smoked in three weeks...we are all about to kill each other...I have no idea where to get weed...I supplied my self for so long...i lost all contact...my customers relied on me alone, they are at a loss for weed until I have product for them..

as for where to find a house and land for 550 a month....I ain't giving away what state I am in...but I am in the south...but not too far south, like Florida or Georgia.

My LL is an old lady who never checks on her property..she just wants her money on the first...

 

[yamaha_1fan]

as for where to find a house and land for 550 a month....I ain't giving away what state I am in...but I am in the south...but not too far south, like Florida or Georgia.

My LL is an old lady who never checks on her property..she just wants her money on the first...

why you being like that? come on, give me your address, I'll help you unpack LOL just kidding. Thats a killer deal.

Julian is right. The first question the appraiser asks " Whats the sales price" or "how much you re-fiing for?" Appraisals are subjective and none are right or wrong, just different. ever watch property ladder or those other shows where the realtors give their opinion on selling price? always different

 

[Julian]

Julian is right. The first question the appraiser asks " Whats the sales price" or "how much you re-fiing for?" Appraisals are subjective and none are right or wrong, just different. ever watch property ladder or those other shows where the realtors give their opinion on selling price? always different

Well, Realtors quote, of course, not an appraisal, should just be the closest they can estimate a potential selling price based upon similar properties sold. (note: problem here is sometimes they rely a little too heavily on what things are on market for, not what they have closed for....ie: Fine, something might have bee/be listed at 500k. If going to finally end up at 450k, well....Really, the angles to it are endless....

Ideally you want 3 (sold) within a 6 block radius, assuming same neighborhood, closed within last 90 days-6 months, as similar as possible, with all adjustments made (up or down) for lot, sq/ ft., condition, etc.....actually should be fairly tight but really a lot of ways numbers can be manipulated either way...

Most of the time they know what target is ...( I had a recent........."conversation"......with an appraiser about a value he had declared.....It was changed 20k higher by end of that day ...)

Also, some clarification to things above.....and, another angle why I always would recommend most go as high LTV (minimum down payment) as possible...(among many other reasons...)

Okay:
1. Using 6.5%....for each $1,000 one puts down, they payment is reduced a little over $6 per month.....(actually, it's $6.32 per $1,000. Rounding to simplify...)

2. That means that, let's say one ("average person/couple") has $20,000 to put down...

Using the above (6.5%), that means that the above ($20,000), will only reduce your payment by about $125 a month....

$125.

Now.....(again, "average person".....) I think it's much more of a problem to come up with 20k, then $125 a month.,....

(Then, of course, you have just dropped all your money, reserves, etc, what if there is an emergency, etc, and, on flip side, 20k can also be channeled somewhere else, investment, etc......so.......anyway you slice it.....down's for "average" person really make little sense.....and, the more one is skilled at investing, it even makes less sense...)

I had same conversation with family previously regarding purchase of next house (home......primary....) about not putting anything/as little as possible down....Why would I want to lay down 50k, 100k, 200k, 500k when it gives me 4x that in daily trading power.....200k is 800k daily trading power......only reduces payment by 1200+/-, yet with that trading power (800k) ......really unlimited potential....1200 is a 5 minute trade on a single day....(trading not my primary...but, sometimes, is greatest income stream I have...can be 10x my primary income...) Meaning in short.....wouldn't lock up 200k to save 1200 a month when that same 200k could be used to make 200k or even much, much more yearly.....

Makes no financial sense....

 

[ItsGrowTime]

^^^ Not everyone can take risks like that? I understand the principle behind it but who really has that kind of money to risk? Just a thought. The US stock market lately has shown why it is risky. Your 200K might be 80K by the end of trading too.

 

[Julian]

^^^ Not everyone can take risks like that? I understand the principle behind it but who really has that kind of money to risk? Just a thought.

Many.

I would never advise anyone to trade who does not already. Was an example.

Point still stands that it is easier for the average person to come up with $125 a month, then to save another 20k...

The US stock market lately has shown why it is risky. Your 200K might be 80K by the end of trading too.

Actually, a day trading margin account, that 200k enables 800k in daily trading power, ( x 2/x 4) and, in a downturn, you would of course be shorting, not going long. (Yes, you can make money when something headed down....) You can play up or down......(I've played the same thing up and down all day before....)

There are no "good markets" and "bad markets"...only good traders and bad traders...

The sad truth of the matter is there is absolutely no reason why anyone should ever lose........(You don't sit while you lose....you exit when it moves against you and re enter after the decline has stabilized.....or, cover if shorting.....again, to prevent losses......ie: You buy at 20, because you think will go up.....and, trades sideways or even hits 19.98...you were wrong.....any further loss was preventable.....

To clarify: The people who truly lose are the ones who either are shortsighted, or impatient, and usually (more than 50%) the "passive" investor...Trading is an entirely separate discussion and an expansive one.....but, very misunderstood by all who do not, and, even very misunderstood by many who do..(again, one of those "either you've "got it" or you don't....can't be taught.....one of those things you "have a feel for".....(I've met "pros" whose performance could be beat by a passive investor....If your a "pro", in my mind, you should be doing at least 200% annuals...which is much , much lower than it sounds.....15% a month....if on accounts above, that would be 4% a month roughly on ones initial capital.........(most things will hit about 1% a day more or less, more if you are playing it up and down......)

 

[ItsGrowTime]

Id like to start a poll on the "Many" assertion and see how many of this audience apply....but I digress. I think people might as well bet it all on red at a roulette table. Same odds since no one can predict the market. Only that one takes days and weeks to prove and one gets it over quickly.

Or like that Atlanta guy some years back, do both.

 

[Julian]

Id like to start a poll on the "Many" assertion and see how many of this audience apply....but I digress.

Many of this audience?....I would assume not many.

Many in the actual world? I would say more than "many"....

The point is, was, and remains that it is foolish for someone who just took 5 years to save 20k to toss it all down and have 0 reserves, when, instead, they could choose to keep it, and, instead, have a payment 125 a month higher.

I think people might as well bet it all on red at a roulette table. Same odds since no one can predict the market.

Actually, nothing could be further from the truth. It's fairly simple to, first, and, secondly, I would say the gambling analogies far from accurate, since one could throw 50k down, and lose 50k, but, on a 50k trade, if the wrong call, may only lose 500 bucks..... Your obviously not a trader, nor familiar, so....but, I assure you, the publics perception of it is far from how it actually is day to day......Depending on ones trades, in some cases, nothing could be more safe and simple.....

You seem to be referring to amateurs.....who are not only a danger to themselves, but, also a PITA to everyone else...

no one can predict the market.

Nothing could be further from the truth......a position is not a throw of dice....or a spin of wheel as above.....a trade is based on many things...none of which involve chance.....To explain would really turn into something much larger, and, not appropriate here, but, I assure you, nothing could be further from the truth.....)

Often, it's truly childs play.....(It's one of the things I not only love, but do professionally......I haven't missed more than 3 minutes of a single trading day in almost 7 years....(those 3 being a trip to bathroom)...I could do a thorough, accurate, and sound analysis of anything, anytime, anywhere (anyone is free to test that, but, only one....)

The problem is seems is many just do not have adequate reactions and mobility.....ie: what's good today is not good tomorrow and vs. versa......people "fall in love" with stocks......it is what it is.....I always just take it day by day while trying to keep longer term in sight....might get into something long, might shoot up tomorrow morning, but, might dump that because know just an open spike, then, might short, then, cover, watch, see where it's going, etc, all the while keeping in mind the general trend (if long term up, would not want to stay in short position, etc, and, again, vs. versa.....).....I'm not a "prayer"....ie: people who pray for it to move or not move against or form them.......far too many of such people.....God doesn't do trading from what I understand

Only that one takes days and weeks to prove and one gets it over quickly.

One can make a 1 minute trade, a 5 minute, a 10 minute, and so on and so on....so.....200 trades could be performed within a couple days....or 1....