Small home worth 35k, selling for 25k (by my uncle). Continuous work in the same field for appx 1 year, and credit score 620ish.
*Fiance wants to liquidate and invest his mutual fund in small piece of real estate. It's in a small college town and would be rented out after 2 yrs.
2007-05-14 20:27:34 · 6 answers · asked by PlasticTrees 2 in Business & Finance ➔ Renting & Real Estate
The problem that you will have is that the loan amount is very small - you will end up paying very high costs to get such a small loan, especially with a 620 score.
2007-05-15 00:56:40 · answer #1 · answered by aj485 5 · 0⤊ 2⤋
You will have no trouble getting the financing unless it is a very old mobile...then financing is tougher, but even then with 50% it should be doable.
Now for the rest of what I see, it appears that you will live in it for 2 years, then rent it out. If this is true, be sure to live in it for a full 2 years and document it. Then after that rent it out for about 2 or 2 1/2 years and sell it. The reason is that you will be able to take all capital gains from it tax free. But to qualify when you sell for no taxes, you must have lived in it 2 of the last 5 year, and owned it 2 of the last 5 years (they do not have to be the same 2) So, you have to live in it for a full 2 years, and then sell it within the next 3. Then if you want you can take that money and put it into another home.
Do not confuse this with the 1031 Tax deferred exchange. That is on investment properties. This is on your primary residence.
Go ahead and email me if you have any questions about that. I am glad to share
I just have to know what kind of idiot would give a thumbs down on such thorough and valid information?
2007-05-15 06:28:20 · answer #2 · answered by Anonymous · 0⤊ 1⤋
Wow, VERY HIGH.
Our mortgage broker told us that if a person can get 30% down they are virtually guarenteed a loan. Mainly because the bank is all but assured of getting their money back in the event of foreclosure.
50% is half the value of the house. Doesnt get any safer then that.
I would say as long as your credit score is above 500 you will get approved no questions asked.
2007-05-15 10:39:51 · answer #3 · answered by Anonymous · 1⤊ 0⤋
Piece of cake!! Just check around for good mortgage rates, and make sure that you have a fixed rate so that your payments do not increase later. Do not apply at numerous places as this will not look good on your credit. Just tell them your income, your approx credit score the amount of the loan and how much you want to put down, and ask them what is the best rate that they can offer you.
Keep in mind that you will have to pay closing cost. You may want to ask the lending agency who they would suggest for closing. Also check around for good insurance rates. They can vary plenty.
2007-05-15 03:44:50 · answer #4 · answered by PEGGY S 7 · 1⤊ 0⤋
With 50% down, I don't see why you would have a problem. You could probably do it with 10% or even less down. If you put at least 20% down you do not have to pay PMI.
2007-05-15 03:34:26 · answer #5 · answered by Anonymous · 1⤊ 0⤋
Chances are very good.
But why put 50%? just do it with 20% and keep the rest in your bank account where it can collect interest or even a CD account
2007-05-15 03:36:36 · answer #6 · answered by Joey M 2 · 1⤊ 1⤋