Hi everyone: I'm a 27-year-old single female with a stable job as a public school teacher. My dream is to purchase a house; it needn't be anything glorious, but I want something sturdy. However, I have very little savings due to my small income and student loan bills, not to mention rent and so forth. I've slashed my expenses to the minimum, but ultimately I would not have a lot of money to put down on a house. And, we all know the income levels for teachers. Is it feasible for me to buy a house?
I did speak with one mortgage representative at a supposedly-reputable company; however, it seemed like there were a ton of little charges added onto the "base cost" of the loan, and it rapidly spiraled to a mortgage payment on a $100K house that I could not afford (we're talking $1300 or so).
Any advice would be great.
2007-03-07 23:15:39 · 5 answers · asked by Time Of Butterflies 1 in Business & Finance ➔ Renting & Real Estate
I can't "hurry up" and pay my student loans since I'm still attending grad school (which is also stopping me from a second job).
2007-03-08 01:02:35 · update #1
Breaking with conventional wisdom on the previous answers, realtors don't know the first thing about mortgages until they've been in the business at least a decade. Problem is, the vast majority of them have been in for less than 3 years, or are part time. As a mortgage broker, I can tell you this with great confidence and certainty, as I've worked with many, and they've all been clueless about what I do, as well as somewhere between a little crazy, and truly emotionally disturbed. Don't get me wrong, they're great at what they do, but they're terrible at what I do. If you're looking for a value on a home purchase, look up www.homesales.gov. They have a listing of HUD and VA owned properties, and they're usually well below market value, with a few things that need fixed. You may qualify for a 203(k) loan, which will allow you to borrow more than the value of the home for the express purpose of fixing it up. That's an FHA program, if I'm not mistaken, so there will be costs associated with the loan itself, in addition to the broker fees, and believe me, getting a broker is a good idea. Just shop around for one. Rates and payments will depend on a few things:
1. What's your credit profile look like? (not just score)
2. How much money do you have saved up?
3. How big of a house (and therefore loan) do you want?
HUD/VA homes can be a tremendous value, especially if you find one that has very few repairs that need redone. Most are replacing carpet, repairing drywall, fixing plumbing, that sort of thing. But depending on where you want to live, they can be a fantastic value. I live in Indiana, and I've seen 3 BR, 2 Bath houses that are only a few years old go for $85k from HUD.
2007-03-08 00:25:37 · answer #1 · answered by togashiyokuni2001 6 · 0⤊ 1⤋
It is difficult sometimes to get a mortgage with little or no down payment. There are loan options called a 80/20 loan but you are talking about a higher monthly mortgage payment. There is also a program called FHA which could help you and I believe there is or use to be a loan program just for teachers that you might want to look into. Make sure you get yourself a good Realtor(r). A good Realtor (R) will not only help you with your loan options but also look out for your best interest. The best part about hiring yourself a Realtor (R) is that you don't have to pay them-The seller does. I wish you luck with purchasing a home.
2007-03-07 23:58:37 · answer #2 · answered by snugglesrn 2 · 0⤊ 0⤋
Hurry up and finish your student loans. When you are done, funnel that money into a seperate savings account until you build up enough cash to at least cover the closing costs, so you dont have to roll those into the mortgage...but try to save for a down payment too....maybe get an afternoon job to save more.
2007-03-08 00:20:50 · answer #3 · answered by Anonymous · 0⤊ 0⤋
check in to first time buyers programs, find a good realtor and have them help you...they will usually do a pretty good job with helping you find a suitable mortgage program. with the housing market as it is now, I am sure they would bend over backwards to get you a good deal. Don't be afraid to have them look into government mortgage programs either- I got a usda home loan 14 years ago- no money down, reasonable closing fees ($500 u.s.), reasonable interest and my payment is very make-able
2007-03-07 23:22:37 · answer #4 · answered by dances with cats 7 · 0⤊ 0⤋
Does your school district use a Credit Union? If so maybe they have good rates for teachers.
2007-03-07 23:27:10 · answer #5 · answered by elaeblue 7 · 0⤊ 0⤋