Re: Re: Re: We will NEVER be able to buy house quote: ---------------------------------------------- -Originally posted by lbrown59 You don't have to buy a house to stop paying lot rent. The END ************************* LB 59 -------------------------------------- Explain please. *~Lucky Mom~* ===================== Buy a peice of land and move your home to it. The END ************************* LB 59
Re: Re: Re: Re: We will NEVER be able to buy house That would require a large loan too and I don't think we would get that. We would have to buy the land, pay someone a few grand to move the house and re-set it and then I don't know how much for someone else to install the septic and well, etc. Land here is expensive too. I'm afraid it would get almost as costly as a house by the time we were all done and it still wouldn't be a house with a basement.
Re: Re: Re: Re: We will NEVER be able to buy house Definately go to that homebuyers class. We thought we had no chance either. We qualified for about 90,000 but went to a first time buyer class. They told us about several programs. 6 months later we closed on our home that we paid $128,000 for. They helped us with the interest rate which upped the amount we qualified for and the downpayment of $26,000. There are many programs out there. Once you get approved you can look at HUD homes. They are usually fixed up enough to get an FHA loan. You can do the rest like cleaning and painting. Kim
Re: Re: Re: Re: Re: We will NEVER be able to buy house Well, that's his point. By your own admission in your first post, your house (if I understand correctly) is a mobile home worth about $30,000. You said that you want a house with land and that all you could get for $30K was a trailer and you already had one of those. And, here you say you bought a car. Well, you've financed ~ $50,000. That's doable on a $8.65/hour income. Keepmine didn't say you didn't have enough income to get a house. Keepmine said you didn't have enough income to get a house for $85K with one salary at $8.65/hour. And that is the truth. Numbers don't lie and 1 + 1 does NOT equal 8. You can get a house (assuming $8.65/hour for 50 hours a week and a max of 3X annual salary for home financing) for the max of $68K. Don't let a lack of money stop you from owning a home - but be realistic about how much home you can own with the salary that you are willing to bring into the household. There's nothing wrong with what keepmine wrote at all.
Re: Re: Re: Re: Re: We will NEVER be able to buy house sorry, don't mean to hijack the thread...but KristineCA, please provide an e-mail or e-mail me at dazhahs23@yahoo.com I'd like to ask you some questions. Thanks.
I also agree keepmine was right. You do have other options though. You can find a bank REO and buy for a substantial discount. You can find a house in less than perfect condition and even get the owner to finance it. There is also Habitat for Humanity, as others have pointed out, there are HUD programs. Don't give up just because the first bank you talked to said no. Gib
Luckymom, I'm sorry, I didn't mean to offend. I'm an ex banker and I've seen so many instances where people bought or tried to buy something that was totally beyond their means and came toabad end. People that are first time home buyers seem caught up in just the mortgage. They never seem to factor in the additional expense of an escrow account for property taxes and insurance. I always tell people to frame the closing escrow analysis because that's as low as they'll ever see it. Every year, your insurance premiums rise and every 4 or 5 years expect property taxes to rise. There are a number of mortgage calculators on the net. Find one and start playing with numbers and interest rates and see what sort of mortgage you can afford. I congratulate youliving below your means and being able to save money. In the long run as your family income rises that'll make home ownership and other goal a reality.
Re: Re: We will NEVER be able to buy house I don't think they were being rude. A mortgate on a $85,000 home with nothing down puts the Payment on principle and interest at $5.09. You have to add insurance and taxes on top of that. If your only income is $8.65 an hour then you are looking at $1,384.00 a month gross before taxes. A 10% down program would drop the payment to $458.66 not including insurance and taxes, which still does not seem reachable on $8.65 an hour. It is going to be extremely difficult to afford a home that is more than 50% of your take home pay. I would first look at trying to get that income up. I know it is easier said than done but I just don't see how you can afford a home at $85,000 even if you can get qualified. I hope you don't take this to be rude, but like others have said, 1+1 does not equal 8.
Re: Re: We will NEVER be able to buy house 1*We would have to buy the land. 2*I don't know how much for someone else to install the septic and well, etc. 3*Land here is expensive too. *~Lucky Mom~* ======================= 1*-3*You will have pay for the cost of these items no matter what you do. I have been in the housing business since 1973. In 30 years nobody has been able to show me how to you can add a $ 75000 house to the cost of these items and come out with less cost than adding a $50000 home. The END ************************* LB 59
Re: Re: We will NEVER be able to buy house I didn't mean to be defensive. I don't think anyone likes to hear that they can't get the things they want... We don't have any financing experience because we saved up and paid cash for our current home and car. The thing I don't get is that if we were renting we would pay $650 a month, but we can't afford $500 for a monthly mortgage payment?? We ARE going to look into buying some rural land - moving our current home out does look like a more probable idea after all. I think we will be able to save enough money to build our own home in the future.
Re: Re: We will NEVER be able to buy house if I understand correctly) is a mobile home worth about $30,000. marci =============== She said they could only qualifly for a 30K$ loan. She did not say what her home was worth. The END ************************* LB 59
Re: Re: We will NEVER be able to buy house It seems to me your other option would be to increase income. Husband could get 2nd job and/or find higher paying job. Could you get a job at night when he is home with the kids? I know this wouldn't be easy, but no pain no gain. Not sure how long he would have to work 2nd job or if you get a job, how long before lenders will consider it. Don't forget once the deal is closed they won't take back the house if you guys go back to the 1 income. (as long as you make your payments) Also, I built my own summer house doing all the work myself and probably have under 20k invested. I got the plans and tons of advice from John Rabbe at www.countryplans.com check out what you can build yourself! Good luck!
Re: Re: We will NEVER be able to buy house It seems to me your other option would be to increase income. Husband could get 2nd job and/or find higher paying job. Could you get a job at night when he is home with the kids? I know this wouldn't be easy, but no pain no gain. Not sure how long he would have to work 2nd job or if you get a job, how long before lenders will consider it. Don't forget once the deal is closed they won't take back the house if you guys go back to the 1 income. (as long as you make your payments) Also, I built my own summer house doing all the work myself and probably have under 20k invested. I got the plans and tons of advice from John Rabbe at www.countryplans.com check out what you can build yourself! Good luck!
Re: Re: We will NEVER be able to buy house I would encourage you to check into income properties. Perhaps you could buy a very cheap home that would allow you to rent a portion of it out. Let your tenant pay your mortgage. In the mean time, fix up the property and increase its value (i.e. landscaping, painting, etc.) and either sell it for a profit so you can move into a better home or keep it, rent out the portion of the home you were living in and get another home for yourself. Be sure to check out the vacancy rates where you live and do your homework. Renting property is not as easy as it sounds, but it would essentially serve as a second job and source of income. Buckets
Re: Re: Re: We will NEVER be able to buy house Not a bad idea provided you don't get some ringdinger tenants. I agree 100% to start with a fixer-upper and move up the ladder to bigger and better. My first home was a fixer-upper. I owned it and lived in it for 4 years and made 20k at closing. If I could do it during the outrageous interest rates of 1982 I know you can do it too Chin up....there is always a way
Re: Re: Re: We will NEVER be able to buy house That's impressive. With work ethic like that, you and your family will (one day) have just about all of what you want. Here's one serious thing to consider. If you choose to finance a home, you probably will need to show that you are able to finance big ticket items on your credit report. Most banks look for a car. But you may want to take your personally pulled credit reports to various loan officers and ask them, "what type of tradeline do you need to see in order to approve me for a house"? If you need a big ticket item, finance a car for a year (make sure it reports). I like the idea of building a home or moving your current one to property that is on the beginning edge of value appreciation (begin to talk to people, local agents and brokers, read the local real estate buzz and figure out where people are starting to move to (or revitalize) and move there while it is still cheap). Or is your current land going to increase in value because there will be easy access via interestate? I hope things work for you!
Re: Re: Re: We will NEVER be able to buy house Please look into Habitat for Humanity. My sister and her family couldn't qualify for a traditional mortgage---one income of about $30,000/yr, 3 kids, 2 adults. They moved into their new Habitat Home in July. It's very nice---a little smaller than the house they moved from(renting) but it's theirs! Qualifying isn't easy though--it took about 2 yrs before they were approved. Habitat is very thorough and they look at other things that you normally wouldn't through a traditional lender. You also have to be prepared to put in you "sweat equity". Look in your phone book or check their website for a Habitat office near you. Get the process going! You'll be one step closer to your own home and one that you can afford! Good luck!
Re: Re: Re: We will NEVER be able to buy house That's another good idea someone suggested. Consider something like a duplex. You could live in one half and rent out the other half and that would help to pay for your portion of the mortgage.
Re: Re: Re: We will NEVER be able to buy house fannie mae community mortgage products are specifically designed for low/moderate income buyers... you might want to try this. they also offer loans for multi-family dwellings. check out the url: http://www.efanniemae.com/hcd/single_family/mortgage_products/comm_100.html
