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How to go about PURCHASING a house...

A

animosity2k1

Member
Alrighty, I have a few questions... How would someone under 21, without having any pay stubs or tax papers go about trying to get a mortgage on a house? Is it impossible?

I have about 15-20k to put down on a place, however I am under 21, I have no steady job or haven't in the past two years. Most of my money was all under the table paid in cash or few checks here and there for various webdesign and computer work.

I've had a credit card for maybe 1/2 year or less now and I'm unsure of what my credit is.

Would it be possible for me in ANY way to get a house w/ that 15k down? I'm looking @ like a 120k place.

Please let me know any insight... also would it look shady to be trying to purchase a house myself? The $ isn't cash by the way the money I have for it is ALREADY in a bank and has been there for months w/o problem.
 
M

Mr. Nevermind

animosity2k1 said:
Alrighty, I have a few questions... How would someone under 21, without having any pay stubs or tax papers go about trying to get a mortgage on a house? Is it impossible?

I have about 15-20k to put down on a place, however I am under 21, I have no steady job or haven't in the past two years. Most of my money was all under the table paid in cash or few checks here and there for various webdesign and computer work.

I've had a credit card for maybe 1/2 year or less now and I'm unsure of what my credit is.

Would it be possible for me in ANY way to get a house w/ that 15k down? I'm looking @ like a 120k place.


Please let me know any insight... also would it look shady to be trying to purchase a house myself? The $ isn't cash by the way the money I have for it is ALREADY in a bank and has been there for months w/o problem.
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Sure you can do it. Getting a house is based on the 3 C's. Cash credit and collateral. As long as you have 2 of 3 C's you can get a loan. You have cash and since you have a credit card you have some form of credit. As far as not having a job? They do loans called "Stated " loans for people wthout a way to verify income. You state how much you make a month within reason. Also with the money in the bank for month your cash is what is called " seasoned" which is a good thing. Depending on the area you are in, if its an appreciating market, putting money down may not be needed. if you can afford a payemnt on 100% loan thn save your cash and let the home make money for you by appreciating. a 30 year mortgage at say 7% will run you $798 a month , then add tax and insurance. So if you can afford that then do a 80/20 loan where you have all the loan financed . Hope thatr helps












Nevermind
 
A

animosity2k1

Member
Alrighty, but... how do I prove where that 20k in there bank came from if they ask? Can I have someone go down on this with me? Also how's it work there going to loan me the full 120k? And wouldn't it be shady if it's all paid back by next summer when I have to move again?
 
M

Mr. Nevermind

animosity2k1 said:
Alrighty, but... how do I prove where that 20k in there bank came from if they ask? Can I have someone go down on this with me? Also how's it work there going to loan me the full 120k? And wouldn't it be shady if it's all paid back by next summer when I have to move again?
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What do you mean how do you prove it? You are 19 or whatever. You can honestly say you mowed lawn since you were 12 and saved it all. Noone cares where the money came from. It could barmizvah money , there are many legit excuses you can use. Bu honestly no one will care. How is it gong to work with 100% financing? you get a 1st mortgage for 96k , then a second for 24K which in turn is the amount of the home. You have to add in closing costs but you may get help with that as a 1st time home buyer. Look into FHA for a loan since its your 1st time. They do loans with no money down or 3% down. Would it be shady if you moved out next summer? Nope. Ppeople buy and sell homes all the time, just make sure you dont have a pre payment penaly on the loan. But you can sell the house in a year if you like. May make some cash on it if it apperciates in value












Nevermind
 
M

Mr. Nevermind

Neuronaut said:
where did the money come from out of curiousity
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His Barmizvah. Thats his story and he should stick to it. Dont you know where money comes from? It grows on trees. seriously , why does it matter where it came from . The answer may be self incriminating, no need to air dirty laundry here












Nevermind
 
akornpatch

akornpatch

Member
they don't care where the money came from.

To do a "Stated income" loan you have to have a near perfect credit score. Otherwise they want proof of income - i.e. tax forms - for a couple years past. If you're over 18 you're old enough to own a house, but you have to prove that you have an income, and a good credit reputaion.

With a first time borrower will probably need to do an 80-90% loan...meaning you need to come up with 10-20% down payment.

But just to re-state it...your proven income and credit history are priority.
 
A

animosity2k1

Member
Nevermind, you've been nothing but helpful w/ all my questinos over the last week, much appreciated.

Most came from parting out cars, while a lot also came from webdesign and programming.

Nevermind, what is FHA? Also how long do these things take usually? Now it's just to find a house w/ a big basement to and must be close to school
 
M

Mr. Nevermind

akornpatch said:
they don't care where the money came from.

To do a "Stated income" loan you have to have a near perfect credit score. Otherwise they want proof of income - i.e. tax forms - for a couple years past. If you're over 18 you're old enough to own a house, but you have to prove that you have an income, and a good credit reputaion.

With a first time borrower will probably need to do an 80-90% loan...meaning you need to come up with 10-20% down payment.

But just to re-state it...your proven income and credit history are priority.
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Hate to disagree but you are wrong. You can do a stated loan with a credit score of 620 or better . Perfect credit is 700-850. Shit welss fargo does stated loans as low as 580 Fico score. First time home buyers have so many choices with no money down loans. Call FHA and see. Most of their loans are 3% down tops. As long as your score is in the mid 600's you'll be fine. Getting a home laon is easier then getting a car loan nowadays.







Nevermind
 
M

Mr. Nevermind

animosity2k1 said:
Nevermind, you've been nothing but helpful w/ all my questinos over the last week, much appreciated.

Most came from parting out cars, while a lot also came from webdesign and programming.

Nevermind, what is FHA? Also how long do these things take usually? Now it's just to find a house w/ a big basement to and must be close to school
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http://www.hud.gov/buying/

There is a link for you. And I am glad I could help. I have been in real estate for 8 years now so trust the advice I am giving you. I have done stated loans in my sleep. Stay away from schools, ever hear of "Drug free school zone"? Get 10 years if busted there , stay away from schools









Nevermind
 
M

Mr. Nevermind

animosity2k1 said:
Also don't I have to prove I'll have a steady income to pay off the mortgage every month and such....
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Yes you have to demonstrate repayment ability. That is why its best to use little money down. Also showing steady deposits in the bank each month will help. They may do a VOE ( Verification of employment) to make sure you do have a job or get contracted work.


FHA=Federal housing authority









Nevermind
 
A

animosity2k1

Member
Well now you've stated my issue... I don't have a job, or any "contract" work... I've just got a nice sum of cash (about 25k + A 5k sports bike I'll sell). I'd like to put like 15k down... so 5k will be there for mortgage... and side things, and the other 6k will go towards equipment.

What if I don't have paystubs, or any of that shit?
 
A

animosity2k1

Member
And how do I use that HUD site? I thought FHA woulda been a company w/ loans... I'm deff wrong heh... should I just go to say charter one and try to get approved for a loan?
 
M

Mr. Nevermind

animosity2k1 said:
Well now you've stated my issue... I don't have a job, or any "contract" work... I've just got a nice sum of cash (about 25k + A 5k sports bike I'll sell). I'd like to put like 15k down... so 5k will be there for mortgage... and side things, and the other 6k will go towards equipment.

What if I don't have paystubs, or any of that shit?
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Then you may need someone else on the loan. They need to see some form of repayment ability. As a young person you have some give, since you are moviing and have cash. You can always say you are new to area and are looking for work. As long as you have cash reserves you should be ok. Many people move to an area with no job but money to put down on a home. You need to show some work history though or show you are looking for a job. That or start a company. It doesnt matter , you could have a tshirt company. Then you are self employed.











Nevermind
 
A

animosity2k1

Member
I already do plenty of webdesign and the like and have a site to prove it all... It's just not incorporated... but I would tell the bank I'd plan to use the house as a datacenter / place to work out of etc... From here, where should I go... to a local bank?
 
M

Mr. Nevermind

animosity2k1 said:
I already do plenty of webdesign and the like and have a site to prove it all... It's just not incorporated... but I would tell the bank I'd plan to use the house as a datacenter / place to work out of etc... From here, where should I go... to a local bank?
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Dont get mortgages from banks. Its not their specialty so there options are slim compaered to mortgage lenders. FHA is the place for you with first time home buying. Or try Wells Fargo, they are very flexable when it comes to financing. Go to your local DLLR and get a license and become an LLC. That way you have a job and can run a busines from your home.










Nevermind
 
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