Buying First Home - NEED ADVICE ASAP?

Question

Here is my situation. I have been approved already for a few different mortgages, my credit score is good (700) and my income is good.

My problem is I’m trying to buy my first home with little to no money down even with the closing costs... So 100% loan and cant afford anymore then 4,000 out of pocket. (Rest is saved for furnishing) I'm trying to buy a junker. So now i need 100% with little to no money for closing cost, and I also need 15,000 to 20,000 to fix the place up. Say the same homes in the area go for 140,000 and i get this place anywhere from 75,000 to 90,000. Please help with what my options are. I cant seem to get a straight answer from any company and I’m running out of time. If anyone has any companies or knows anyone that could help me with this I would greatly appreciate it! Thanks

Well I don’t qualify for any first time home buyer grants because my income is greater then the required amount.

The property I’m looking at now is a repo and I don’t know if banks do seller assist esp. if you’re offering much lower then what they are asking...

I kind of wanted my first home to be one that needed a lot of work so I could make it my own. I have some knowledge along with some family that is and was in the construction business.

So do I have to pray that the appraisal comes back more then what I’m purchasing the home for to get a home equity loan? What usually plays into what the appraisal comes out to?

Answer 1

Check with your community and/or your state. They often have special programs for first-time home buyers to assist with down payments, closing costs and/or home improvement loans for homes that need work. For instance, when I bought my first home, I received a special down-payment & closing cost assistance loan from the Michigan State Housing Development Authority (MiSHDA). I did not have to make payments on this loan and had I kept the house for the full 30 year mortgage (and never refinanced), I wouldn't have had to pay it back at all. However, when I refinanced a few years later, I did have to pay it back in full...but the refinancing helped with that. Check the city and/or county you're moving into as well for such special programs...often called "community block grants". Good luck!

Answer 2

Well, it's possibe to do what you are doing, but it's probably easier to find a house that doesn't need repair and ask for help from the seller to pay closing costs. To do what you propose, you could wait for the appraisal on the house you're buying and take out a home equity loan on the difference between the appraisal and the purchase price if the house appraises higher (no guarantee of that). There is also a private mortgage industry that could do it, but rates are much higher. Also, owner financing is a possibility, but I think my first suggestion makes the most sense for a first time homebuyer who intends to live in the property. Also explore FHA loans or a house with an assumable loan including VA loans. There are a number of first time homebuyer assistance grants,etc available as well.
Thjere is also such a thing as a rehab loan. I know Homebanc has such a product, so I'm sure others do, too. It has a minimum of 35,000 additional borrowed above the purchase price for improvements. I don't know what the qualifications are (it's probably not a 100% loan) but you might check it out.

Answer 3

Your best bet is an FHA 203K rehab loan. The 100% loans with a Seller Concession are really not available any longer due to the fall of the sub-prime mortgage market, and the increasing rate of default and forclosures. The FHA 203K loan is a rehab loan that will get you a lone amount based on the work being complete. They will require a minimum of 3%-5% down, so you may need to hold off on the new furniture for a bit. And based on the amount of the downpayment, you may still need to come up with some of the closing out of pocket. There just aren't as many options available now as there was a few months ago.

Answer 4

sounds like you need to see about qualifying for the FHA loan for home improvements. They not only give you a loan but provide you money to repair the home.

you can always buy a house for the asking price and have seller pay all closing costs to save you money.
I just bought a house with zero down for $75,000.

Answer 5

I can help you out with that.. 80/20 loan still exists and since your credit is awsome I'm very sure i could find something for you i would just need to get some more info from you and then i could give you a rate!
e-mail me
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Answer 6

buy the land which is near to commercial area