I would rather buy a small house and then sell it when I leave, after a year, but I would probably not be able to afford a small house on my salary alone. Could I sell the house at the end of the year with any remaining money owed on the mortgage, or this would not save me any money over renting?
2006-07-02 11:41:34 · 6 answers · asked by mary h 2 in Business & Finance ➔ Renting & Real Estate
Yes but you can only get the original appraised value from when you purchased until you've had it a minimum 12 months. This is because the banks want to eliminate "Flipping" in the market.
2006-07-04 07:59:21 · answer #1 · answered by jonnylender 1 · 1⤊ 0⤋
Yes, you can sell a house that has a mortgage. In fact, most houses that are sold still have mortgages. Yes, you can sell a house at the end of a year with the remaining money owed on the mortgage. This is called selling the house "subject to" the existing loan. This means the buyer takes over the existing loan. Investors like myself do this all the time. In fact, I might be interested in buying your house at the end of a year.
2006-07-02 19:11:01 · answer #2 · answered by Superman P 2 · 0⤊ 0⤋
Yes, you can buy a small house and sell it after a year, BUT there are some factors that will affect you from making money and you could possibly lose money on the deal. It all depends on what your credit score is and what type of loan you take. If you buy a small house and fix it up, you may be able to come out ahead, but if you just buy a normal house and have a regular loan such as 30yr fixed note with PMI (because you didn't put 20% down) you will most likely lose money. Your best bet is to get with a real estate agent and a lender that you trust to get more info. I would recommend picking a lender before a real estate agent to see if it is feasible for you to take a loan with your income. My best advice would be to wait it out and rent if you do not have good credit and don't take a high interest rate loan; typically you would have to live in the house for more than 2 years to come ahead and not lose money.
2006-07-02 18:52:10 · answer #3 · answered by bbabines 1 · 0⤊ 0⤋
With mortgage fees and insurance costs and everything over the year, unless you do enough improvements to the house to be able to get more than you paid for it at the end of a year, it's probably not worth it. You will most likely end up losing money in the end, and then you also have to think, some houses are on the market for months before they sell, so if leaving in a year is important to you, go find an apartment.
2006-07-02 18:46:24 · answer #4 · answered by OwlHooter 2 · 0⤊ 0⤋
I think the answer is yes.....If you can't afford a house on your salary why would you even bother?...You can sell the house whenever you want unless there are certain stipulations in your contract/deed, etc...If you sell it at a profit, then you can pay off the house and keep the rest..It would save you money over renting because when you rent you are paying someone else....as opposed to when you own, it's yours.It is one of the best ways to build up your credit too....
2006-07-02 18:52:22 · answer #5 · answered by mom of a boy and girl 5 · 0⤊ 0⤋
It will work if the economy holds up., We used to do it all the time, when my husband worked construction. Just be careful with the contract. Most want you to contract to stay a year and most have hidden penalties for paying off before 5 years.
The real estate agents might deny this, but the banks and mortgage companies are the ones who decide what the contract says, not the agent.
Good luck
2006-07-02 18:47:34 · answer #6 · answered by Anonymous · 0⤊ 0⤋