Carpet ;)

[XMan]

UPDATE

So looks like we're going to get into something a lot more reasonably priced. Needs some work, but it has potential.

Of course . . . the boss refuses to move in until the carpet is replaced and the walls painted.

 

[Conky]

Have the current owner finance it.

 

[XMan]

He's buying land to build a new house, not an option.

 

[imported_sicko]

You can do a 100% financing now and refinance as soon as you reach 20% equity to avoid PMI.

80% mortgage, 20% piggyback heloc on the house, ask the seller to overstate the value (beef up the contract price), use seller concession to draw less from the heloc and keep you above 20% equity to avoid PMI.

honestly, I don't suggest you buying the house if you are not ready. I have done 100% financing on investment properties that I wind up flipping for profit in less than 3 months, I don't think your primary home should be financed this way.

 

[Caesar]

XMan register here. Great place to learn about mortgage process and you will see a lot of people doing different kinds of financing that will give you a lot of ideas. Pros can also direct you towards the correct place/lender

 

[XMan]

Originally posted by: sicko
honestly, I don't suggest you buying the house if you are not ready.

Heh, you don't know my wife. I made an offhand comment a couple of weeks ago that I didn't know if we'd be able to afford it and it started a huuuuuge argument.

 

[LegendKiller]

Originally posted by: sicko
You can do a 100% financing now and refinance as soon as you reach 20% equity to avoid PMI.

80% mortgage, 20% piggyback heloc on the house, ask the seller to overstate the value (beef up the contract price), use seller concession to draw less from the heloc and keep you above 20% equity to avoid PMI.

honestly, I don't suggest you buying the house if you are not ready. I have done 100% financing on investment properties that I wind up flipping for profit in less than 3 months, I don't think your primary home should be financed this way.

This is the exact reason why the market is tanking and we could be facing a recession, or even a very serious recession, very soon. Although to your credit you did say not as your primary.

Don't buy a house within the next year. Give her an excuse like "you don't want to lose 20% of our home value within the next year do you? We will be more in debt than the house is worth!!" Wait!

 

[dquan97]

How much is the house? $1400 mortgage on $4K gross income should be feasible, assuming no other major debt or liability.

 

[imported_sicko]

Originally posted by: dquan97
How much is the house? $1400 mortgage on $4K gross income should be feasible, assuming no other major debt or liability.

About 250k I am guessing if its 30 year mortgage.

edit to add: 4k before tax means you get almost nothing left after paying your mortgage.

Also consider what your tax/insurance will cost on top of the mortgage, those are money that you will have to pay in order to keep the house and the home equity line open, one screw up and the bank might close your heloc or jack the rate up.

 

[XMan]

Originally posted by: sicko

Originally posted by: dquan97
How much is the house? $1400 mortgage on $4K gross income should be feasible, assuming no other major debt or liability.

About 250k I am guessing if its 30 year mortgage.

edit to add: 4k before tax means you get almost nothing left after paying your mortgage.

Also consider what your tax/insurance will cost on top of the mortgage, those are money that you will have to pay in order to keep the house and the home equity line open, one screw up and the bank might close your heloc or jack the rate up.

The house is 225K. Our takehome is around 4K - net, I mean.

A question - the homeowner is cutting us a deal, the house will probably appraise for more than 225. If it appraises for say, 250, would that count as "equity"?

My wife's credit score is 775, mine is 690.

 

[imported_sicko]

Bank's appraisers tends to under estimate in their own way that differs from the market value of the house itself.

By the way, if your takehome is 4k now, you will take home more once your buy the house, so thats a plus.

You don't have anyone in family that can spot you some money for down payment? At least so you don't have to waste money on PMI.

 

[XMan]

Originally posted by: sicko
By the way, if your takehome is 4k now, you will take home more once your buy the house, so thats a plus.

You don't have anyone in family that can spot you some money for down payment? At least so you don't have to waste money on PMI.

How will takehome increase? Mortgage deduction on taxes?

Nobody in my family or hers has 40K they can "spot" us. My company has a first-time homebuyer assistance program where they'll give me $2,000 once our offer is accepted, but that doesn't help . . .

That CreditBoards link is great, I guess there are some no-PMI 100% financing loans out there if you can find them . . .

 

[GuitarDaddy]

economic conditions vs. wife nest building= wife wins!

All I can say is location,location,location. The housing market in general is posed for further devaluation, but it is very much by region and location. There are many markets where I wouldn't be afraid of any major losses in value.

 

[imported_sicko]

Originally posted by: XMan

Originally posted by: sicko
By the way, if your takehome is 4k now, you will take home more once your buy the house, so thats a plus.

You don't have anyone in family that can spot you some money for down payment? At least so you don't have to waste money on PMI.

How will takehome increase? Mortgage deduction on taxes?

Nobody in my family or hers has 40K they can "spot" us. My company has a first-time homebuyer assistance program where they'll give me $2,000 once our offer is accepted, but that doesn't help . . .

That CreditBoards link is great, I guess there are some no-PMI 100% financing loans out there if you can find them . . .

Won't be by a whole lot (mortgage only 14k) but you should get a tad more take home.

When I said family, I don't mean an individual, I meant like a few grand from each person, that shouldn't be hard right?

 

[XMan]

Originally posted by: sicko

Originally posted by: XMan

Originally posted by: sicko
By the way, if your takehome is 4k now, you will take home more once your buy the house, so thats a plus.

You don't have anyone in family that can spot you some money for down payment? At least so you don't have to waste money on PMI.

How will takehome increase? Mortgage deduction on taxes?

Nobody in my family or hers has 40K they can "spot" us. My company has a first-time homebuyer assistance program where they'll give me $2,000 once our offer is accepted, but that doesn't help . . .

That CreditBoards link is great, I guess there are some no-PMI 100% financing loans out there if you can find them . . .

Won't be by a whole lot (mortgage only 14k) but you should get a tad more take home.

When I said family, I don't mean an individual, I meant like a few grand from each person, that shouldn't be hard right?

Never happen. My family isn't exactly what you'd call generous, and hers probably couldn't afford to.

 

[Antisocial Virge]

I guess there are some no-PMI 100% financing loans out there if you can find them . . .

Read the fine print on those. Some have a higher interest rate that will cost you more money over the length of the loan than just dealing with the PMI for a few years.

 

[waggy]

also check out HUD loans. they have many options for first time home owners.

 

[BigJ]

Then wifey needs to get a 2nd job.

 

[Caesar]

Originally posted by: Antisocial Virge

I guess there are some no-PMI 100% financing loans out there if you can find them . . .

Read the fine print on those. Some have a higher interest rate that will cost you more money over the length of the loan than just dealing with the PMI for a few years.

Yep most of those 100% no PMI loans are actually Lender Paid PMI (LPMI). However, there was a recent posting on creditboards about some BofA program that was much better than this.

 

[IEC]

Originally posted by: BigJ
Then wifey needs to get a 2nd job.

Or just cut back on other expenses...

 

[ultimatebob]

Originally posted by: XMan

Originally posted by: sicko
honestly, I don't suggest you buying the house if you are not ready.

Heh, you don't know my wife. I made an offhand comment a couple of weeks ago that I didn't know if we'd be able to afford it and it started a huuuuuge argument.

Yep... Sounds like wifey needs to make some additional income to pay for the house that SHE wants. Run that by her, because I'm curious what her response would be

 

[LegendKiller]

Originally posted by: GuitarDaddy
economic conditions vs. wife nest building= wife wins!

All I can say is location,location,location. The housing market in general is posed for further devaluation, but it is very much by region and location. There are many markets where I wouldn't be afraid of any major losses in value.

My wife wants a house, but she knows that it doesn't make any sense right now. With what we are paying in rent we could get something pretty fekkin nice too. However, I fully expect houses to decline by at least 20% on a nationwide average.

 

[imported_sicko]

Originally posted by: LegendKiller

Originally posted by: GuitarDaddy
economic conditions vs. wife nest building= wife wins!

All I can say is location,location,location. The housing market in general is posed for further devaluation, but it is very much by region and location. There are many markets where I wouldn't be afraid of any major losses in value.

My wife wants a house, but she knows that it doesn't make any sense right now. With what we are paying in rent we could get something pretty fekkin nice too. However, I fully expect houses to decline by at least 20% on a nationwide average.

keyword: nationwide average

Not everywhere you see are going to drop in value, so buyer should take that into consideration as well.

If I were the OP, I will look into the possibility into flipping the house for profit, and use the profit for down payment towards the next house.

My concerns is that he is not really getting a deal, no offense but if you can't get money from family why would someone give you a 25k break? That first dips theory doesn't really sound too promising now that I think about it.

 

[StageLeft]

Wife gets what wife wants. That mortgage and your take home is fine, as long as you don't have any drug addictions or anything. Enjoy the digs!

 

[LegendKiller]

Originally posted by: sicko

Originally posted by: LegendKiller

Originally posted by: GuitarDaddy
economic conditions vs. wife nest building= wife wins!

All I can say is location,location,location. The housing market in general is posed for further devaluation, but it is very much by region and location. There are many markets where I wouldn't be afraid of any major losses in value.

My wife wants a house, but she knows that it doesn't make any sense right now. With what we are paying in rent we could get something pretty fekkin nice too. However, I fully expect houses to decline by at least 20% on a nationwide average.

keyword: nationwide average

Not everywhere you see are going to drop in value, so buyer should take that into consideration as well.

If I were the OP, I will look into the possibility into flipping the house for profit, and use the profit for down payment towards the next house.

My concerns is that he is not really getting a deal, no offense but if you can't get money from family why would someone give you a 25k break? That first dips theory doesn't really sound too promising now that I think about it.

Again, the flipper mentality is where we got into this mess to begin with. It's no better than the .com boom/bust, and may be a bit worse considering that it's going to have a much larger impact on the economy and people's lives. I don't think you fully realize what a 20% drop means, most don't.