Is there anyway for me to purchase property?

Question

I'm 26 and i recently got a job paying 45k in the N.Virgina area.
I want to look to buy instead of renting for over 900 a month. Is there anyway for me to purchase a townhome or a condo, and perhaps rent out part of it to help pay for it?

i only have about 10k in savings

Answer 1

Talk to a mortgage broker. They will be able to tell you for sure. I don't think you would have a problem as long as you have a decent credit score.

Answer 2

What's your credit like?

Your credit score will determine what kind of payments you'll be making depending on the mortgage company you go with.

Check with a reputable mortgage company. The smaller ones will be selling your mortgage almost immediately to a larger one so be careful of the % rate and the terms!!!

A real estate agent is a good start but the mortgage company you go with is going to be your key player.

Poetic (the answerer below) is most definitely on the right track and seems to have a real handle on creative financing and buying tax properties. My dad does this in SC (buys parcels) and rents them out to local cable and phone companies for cell tower sites. Depending on how the contract is written up, you could be set for life this way.

Answer 3

Definitely. Get a trusted real estate agent, I was lucky that my step dad is one. I put $0 down, it ended up costing about $9,000 with all the fees, etc. A renter is of course an option and the tax write off from the interest will save you money. Another tip; immediately change your deductions from your paycheck. You can change your number of dependents to, say, 6 or even 10, and get more of your money each paycheck. This will be offset by the interest write-off. It is what I did and your taxes on April 15th are not that crazy.

Answer 4

The conventional ways mentioned in other answers will work, but a little imagination and hard work can be a great sub for both cash and credit.

I have purchased several properties that were foreclosed on for unpaid property taxes. It is possible that you can find exactly what you want for pennies of the dollar value, but more likely you will find properties with problems of some sort, such as a home that cannot be occupied without first replacing the septic system. Buy it for $10K, fix it for $6K, turn around and sell it for $80K and you are a good way toward your ultimate goal.

I personally went another route. I buy vacant land. Most of the parcels I use to create mobile home rental lots. In this way I get a rental income without having to worry about fixing squeaks and leaks. In one case, I came across a piece of commercial property. I live very near this property and know some of its history, so I bought it and held it. I bought it for about $6K and paid about $700 worth of property taxes on it every year for about 7 years. Finally the state came back to a plan they had abandoned during an economic downturn -- they built a freeway overpass in front of my property and gave me one of the best commercial corners in the Houston area. A theme park recently announced they are moving in two doors down, so I expect my property to sell soon. Let's just say I don't think I'll ever have to worry about money again (as long as I'm not suddenly stupid).

I think you can see why I am partial to putting in the work to buy tax foreclosures, even though you may need to look at 200+ properties to find one with the potential you want. Still, with your income and available cash, you might find something in a more traditional manner. If you do not have VA benefits available, I would contact the FHA and find out what they have available to someone in your situation.

There are also lease-purchase and owner-finance deals to be had. Be careful of the lease-purchase and owner-finance deals. Often these are sale methods used by an owner who knows a home will not pass a normal purchase inspection. They are also often sold by owners who know such arrangements are often sought by purchasers who are unable to arrange a bank mortgage. Have someone who knows something about financial math to look over any such arrangement in order to make sure you are not getting taken advantage of by something that looks good on the surface. Yes, perhaps you find a deal that looks good and offers the payment you are looking for -- but -- does that payment include an escrow deposit that takes care of insurance and property taxes like a normal mortgage does, or does it ignore these needs but specify that you take care of them yourself? These concerns can represent half of a normal mortgage payment, so that payment you were looking for is only half of what you signed on the line for.

Owner-finance and lease-purchase arrangements also tend to take advantage of unqualified buyers by bumping the price and interest rates. One point on the interest rate can have tremendous implications on your payment; have someone show you with the actual numbers that come into question. Also be careful of the default terms. In some states a contract can be written that allows the financier to foreclose and take possession with ANY default and without a court order. This could mean that if you are ever even one day late with a payment, they foreclose, keep your down payment, and then do the same thing to the next guy with 10K and a dream.

10K down and your income should buy you something, but be very careful and put in the work to make sure you get something you both like and can live with.

Good luck.

Answer 5

Talk with an experienced Loan Officer and take a complete application and pull your 3 score credit report. From this he/she can show you what you qualify for now or in the near future. He/she can also put you in touch with a trusted Real estate agent in the area you're looking.

Answer 6

In Vigginia, look at the tax lein sales for your county. There might be a property that you can afford. After you make the purchase, refinance the property to make any repairs that have to be done.

Answer 7

Unless your credit is horrible, then I can do a loan for you. E-mail me through my profile (please include "mortgage info" in the title, for filtering). I would love to talk to you about what we can do for you. Or you can call me at 765.455.0948. I'm often not there, please leave a message and I will get back with you.