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Old 06-01-2017, 05:53 PM
 
3,570 posts, read 3,735,461 times
Reputation: 1344

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I am looking to buy a coop in the Bronx (NYC). I have a partial down-payment and will be gifted the difference to bring it up to 20%. (But only if necessary since it will have tax consequences.)

I am also a first time home buyer, may qualify for middle-income subsidies, and am a single parent.

My potential mortgage lender worked up a document that gave me very favorable rates. My income is solid, my credit is good and I can easily qualify for a conventional loan.

However, I need assistance with closing costs and any help with the down-payment I can get.

My lender gave me a list of resources where I can go to seek a grant. They are a bunch of websites that have generic language, discuss First Time Home Buyer seminars etc. They end up having classes that aren't starting for at least a month and cost around $100. (Meanwhile, I have a feeling what I will see on Saturday will be the apartment I want to make an offer on.)

Anyway, if I have to take a class to qualify for a grant, I have no problem doing this. However, I don't get a sense that these classes are going to provide information that I don't already know.

My goals:
  • Put down a high enough down-payment that my mortgage will be low. (Because I still have to pay maintenance or as some understand it "common charges.")
  • If the loan is under FHA, to put down enough that I am not subject to a PMI. I read once you have that on your mortgage, they are very hard to get rid of, no matter how stable your payment is.
  • Get grants for as many closing costs as possible.

Is there any where I can "cut to the chase". These websites seem a bit scammy from the looks of it.
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Old 06-02-2017, 12:18 AM
 
8,539 posts, read 12,266,597 times
Reputation: 16432
Quote:
Originally Posted by roseba View Post
I am looking to buy a coop in the Bronx (NYC). I have a partial down-payment and will be gifted the difference to bring it up to 20%. (But only if necessary since it will have tax consequences.)
Why do you think there would be tax consequences...and to whom?
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Old 06-02-2017, 06:52 AM
 
3,570 posts, read 3,735,461 times
Reputation: 1344
Quote:
Originally Posted by jackmichigan View Post
Why do you think there would be tax consequences...and to whom?
Because my father (retired) is pulling money from his 401K to help me with the down payment. He will have to pay taxes on that. And his income is actually higher as a retiree than when he was still in the workforce.
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Old 06-02-2017, 07:59 AM
 
8,539 posts, read 12,266,597 times
Reputation: 16432
Quote:
Originally Posted by roseba View Post
Because my father (retired) is pulling money from his 401K to help me with the down payment. He will have to pay taxes on that. And his income is actually higher as a retiree than when he was still in the workforce.
Okay, that's understandable. I thought you might have been thinking about gift taxes, which there would be none to you, and could be easily avoided by any donor.

(Sorry, but I don't have much to offer about classes for potential grants.)
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Old 06-02-2017, 09:47 AM
 
8,170 posts, read 6,001,128 times
Reputation: 5963
Quote:
Originally Posted by roseba View Post
I am looking to buy a coop in the Bronx (NYC). I have a partial down-payment and will be gifted the difference to bring it up to 20%. (But only if necessary since it will have tax consequences.)

I am also a first time home buyer, may qualify for middle-income subsidies, and am a single parent.

My potential mortgage lender worked up a document that gave me very favorable rates. My income is solid, my credit is good and I can easily qualify for a conventional loan.

However, I need assistance with closing costs and any help with the down-payment I can get.

My lender gave me a list of resources where I can go to seek a grant. They are a bunch of websites that have generic language, discuss First Time Home Buyer seminars etc. They end up having classes that aren't starting for at least a month and cost around $100. (Meanwhile, I have a feeling what I will see on Saturday will be the apartment I want to make an offer on.)

Anyway, if I have to take a class to qualify for a grant, I have no problem doing this. However, I don't get a sense that these classes are going to provide information that I don't already know.

My goals:
  • Put down a high enough down-payment that my mortgage will be low. (Because I still have to pay maintenance or as some understand it "common charges.")
  • If the loan is under FHA, to put down enough that I am not subject to a PMI. I read once you have that on your mortgage, they are very hard to get rid of, no matter how stable your payment is.
  • Get grants for as many closing costs as possible.

Is there any where I can "cut to the chase". These websites seem a bit scammy from the looks of it.
Check your local housing authority website and look for local grants available. I had to take a class 20 years ago to get a grant to help with closing costs for my first house. Yes I already knew the information, but I received $5k that I never had to pay back. I sold the house 18 months later, for a significant profit. Taking a Saturday class to learn things I already knew was a very small investment of my time.
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Old 06-02-2017, 09:48 AM
 
8,170 posts, read 6,001,128 times
Reputation: 5963
Quote:
Originally Posted by roseba View Post
Because my father (retired) is pulling money from his 401K to help me with the down payment. He will have to pay taxes on that. And his income is actually higher as a retiree than when he was still in the workforce.
Can he take it as a loan? Does he own a home that he can take out a loan against, (HELOC), to get the gift funds?
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Old 06-02-2017, 12:45 PM
 
3,805 posts, read 9,283,237 times
Reputation: 4978
Quote:
Originally Posted by roseba View Post
I am looking to buy a coop in the Bronx (NYC). I have a partial down-payment and will be gifted the difference to bring it up to 20%. (But only if necessary since it will have tax consequences.)

I am also a first time home buyer, may qualify for middle-income subsidies, and am a single parent.

My potential mortgage lender worked up a document that gave me very favorable rates. My income is solid, my credit is good and I can easily qualify for a conventional loan.

However, I need assistance with closing costs and any help with the down-payment I can get.

My lender gave me a list of resources where I can go to seek a grant. They are a bunch of websites that have generic language, discuss First Time Home Buyer seminars etc. They end up having classes that aren't starting for at least a month and cost around $100. (Meanwhile, I have a feeling what I will see on Saturday will be the apartment I want to make an offer on.)

Anyway, if I have to take a class to qualify for a grant, I have no problem doing this. However, I don't get a sense that these classes are going to provide information that I don't already know.

My goals:
  • Put down a high enough down-payment that my mortgage will be low. (Because I still have to pay maintenance or as some understand it "common charges.")
  • If the loan is under FHA, to put down enough that I am not subject to a PMI. I read once you have that on your mortgage, they are very hard to get rid of, no matter how stable your payment is.
  • Get grants for as many closing costs as possible.

Is there any where I can "cut to the chase". These websites seem a bit scammy from the looks of it.
The class is basically an indemnification apparatus so that it can be certified that you were made aware of certain specifics germane to the program. It's not avoidable. You should take it, pay attention, and ask questions. You are a first-time homebuyer. Stop assuming you don't need knowledge.
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Old 06-02-2017, 01:48 PM
 
4,787 posts, read 11,695,013 times
Reputation: 12757
HUD/FHA does not loan on co-ops.

In fact most lenders do not finance co-ops. However, since this is NYC, there are a number of lenders who will finance a co-op. Just make sure your mortgage broker or lender is giving you the correct info.
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Old 06-04-2017, 05:59 PM
 
3,570 posts, read 3,735,461 times
Reputation: 1344
Quote:
Originally Posted by LowonLuck View Post
Check your local housing authority website and look for local grants available. I had to take a class 20 years ago to get a grant to help with closing costs for my first house. Yes I already knew the information, but I received $5k that I never had to pay back. I sold the house 18 months later, for a significant profit. Taking a Saturday class to learn things I already knew was a very small investment of my time.
That's fine if they point me in the direction of the grants. If they don't, it's a waste of my time which is very limited.
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Old 06-04-2017, 06:01 PM
 
3,570 posts, read 3,735,461 times
Reputation: 1344
Quote:
Originally Posted by LowonLuck View Post
Can he take it as a loan? Does he own a home that he can take out a loan against, (HELOC), to get the gift funds?
I don't think you can take a lone on a 401K after you are officially retired. I know he can't take a loan on his property because he JUST refi-d.
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