Thanks for all of your Help Radiohead. Im just wondering if ALL programs have the provisions like yours or is this just the program you are using. I noticed if you sale and make a profit... you have to give them 50% of it. I think that's if you stay after the nine years... BUT.. I'm not sure. So.. if they give you 5K for a down payment. You later sale your house for 20K more than what you loan was. You have to give them 10K! I'm not sure if thats such a good deal. IF i'm wrong... PLEASE correct me... I really don't understand how all of this works.. and it seems to me that they are all different.
You are misinterpreting the 50%, the max recapture is 6.25% of the house price, but its saying if you make 4k profit, the most you would owe is 2k. They are preventing people from expoliting the program for a quick purchase/sale for profit. So the most would be like 7k in our instance, but thats only if we make at least 14k on the profit. And thats if you sell within the nine years. Overall its still a great deal considering the tax savings over the years, and you are actually making a profit, compared to renting, and having no chance. But also a conventional loan would be the way to go, if you have some decent savings. All depends on the circumstances.
If you are renting and can get help with the down payment you should always by instead! What most folks don't realize is when you are renting you are actually buying anyway.
There is a program that works like this. It has been in use for years and years. It's called Renting:
1-Ther isn't any down side. ``````````````````````````````````````` 2-Fat Jake: You are 1000% right on this one.You sure hit the nail square on the head! In spite of studing and working in housing for the past 29 years I have never figgured out why renters feel the landlord owes them free living quarters if and and when they fall on hard times. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Does anyone know exactly how HUD works. I'd like to buy a house in the next couple years. I don't know if i'll ever be able to. I'm a Care giver...I only make 8.07$ an hour. in a couple years I'll be at Nine....With that kinda money, I feel like i'll never get a house. But I love my Job (I work with a non-profit org...working with speical needs kids) So theres no way i'm quitting a job that I love. Any chance i'll ever be an homeowner?
F. J. You are correct when you state for someone else. Unless you have free housing you are buying a house: The only question is who gets the house?
Here is another fact of owing:If you get in trouble down the road you have the equity in the home or the chance to sell or rent it to help out in a cash bind. Try that with the land lords house!
With rates this low, I think if there is anyway on earth to buy a home you should do so. Two caveats about doing it with no savings. You need some money for any unexpected repaird to the home or to appliances. I mean, you can't call the landlord anymore and if you have a low paying job and no savings, the answer isn't debt. Secondly, frame the settlement statement section on the escrow account. I assure you, this is as small as you'll ever see it! Every year, your insurance will go up and, every 3 or 4 years, the same for property taxes. Don't get into something if you can't handle the annual rising cost of home ownership.
Fat Jake : If more people realized the truths of what you have posted here fewer people would be paying for two homes and never getting either one of them!
And I suppose paying monthly rent is not debt. Renting or buying you are still paying the monthly payment. The difference is in one case you get the house in the other the landlord gets it!
