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Old 03-06-2009, 07:53 PM
 
Location: Cary NC
553 posts, read 2,081,684 times
Reputation: 303

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Quote:
Originally Posted by jojo7 View Post
Do lenders allow you to finance closing costs and if so, is the 10% down payment just for the home sale amount and can I have the lender add the closing costs to the loan? or Is it 10% down the total amount borrowed which would include the closing costs and sale of the home?
Daddys///3 is correct. You cannot finance closing costs. next question I usually hear is can the seller help me pay my down payment? Answer is no.
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Old 03-06-2009, 08:04 PM
 
Location: Cary NC
553 posts, read 2,081,684 times
Reputation: 303
Quote:
Originally Posted by jojo7 View Post
I have a unique situation and was wondering if anyone could help. We are purchasing a home and would like to apply for a VA loan since we will only putting 5% down. VA usually offer good rates and we can avoid the dreaded monthly PMI which is why we would like to go the VA loan route. My situation is this..... we live in corporate housing. The house we live in is provided by my husband's employer, therefore, we don't pay rent and we don't own any real estate. We want to purchase a home to use as a weekend get-a-way type of home for now that would be paid off before retirement (which isn't for 20 years). When I read the VA website they indicate the home must be your permanent residence. I haven't talked with a loan officer yet but was wondering since we don't own or rent could this home still be considered a primary residence? Would a FHA loan be just as good? We do have very good credit and solid employment history. The only thing we don't have is a big down payment.
I failed to ask you, how far would the second home be from your current location? If it is within a reasonable commuting distance and you have to pay the mortgage whether it is a primary home or a vacation home anyway, legitimately pass on corporate housing and live in your new home. Nobody is forcing you to live in corporate housing I would imagine so move out. It isn't going to cost you anymore to stay in corporate housing vs. living in a home you purchased (except maybe utilities). Either way, second home opr primary residence you willhave a mortgage payment so enjoy your new home! Once the appropriate time has past you can move back in to corporate housing if you prefer and then have this as your second home. However, insurance companies do not like vacant or unoccupied homes because vandalism is more likely if you do not live there full time. (I am not only a mortgage broker but an insurance agent as well) That being said it would be better if you lived in it to keep your insurance rates down. I warn you, do not try to cheat. If you are going to do something like this make sure you really are going to live in the newly purchased home full time. Anything you can think of the bank has already thought of to protect themselves. 2 things I never mess with, mother nature and the federal government. Hope this helps.
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Old 03-07-2009, 08:47 PM
 
1,319 posts, read 2,150,163 times
Reputation: 400
Quote:
Originally Posted by deuterdu View Post
I failed to ask you, how far would the second home be from your current location? If it is within a reasonable commuting distance and you have to pay the mortgage whether it is a primary home or a vacation home anyway, legitimately pass on corporate housing and live in your new home. Nobody is forcing you to live in corporate housing I would imagine so move out. It isn't going to cost you anymore to stay in corporate housing vs. living in a home you purchased (except maybe utilities). Either way, second home opr primary residence you willhave a mortgage payment so enjoy your new home! Once the appropriate time has past you can move back in to corporate housing if you prefer and then have this as your second home. However, insurance companies do not like vacant or unoccupied homes because vandalism is more likely if you do not live there full time. (I am not only a mortgage broker but an insurance agent as well) That being said it would be better if you lived in it to keep your insurance rates down. I warn you, do not try to cheat. If you are going to do something like this make sure you really are going to live in the newly purchased home full time. Anything you can think of the bank has already thought of to protect themselves. 2 things I never mess with, mother nature and the federal government. Hope this helps.
Unfortunately yes, we do have to live in the house my husband's employer provides because it's part of his job. I would love to live in the area we are purchasing but it's not an option. Where we are purchasing does have round the clock security and is located in a development but of course, no guarantees. I am sure we will have an alarm system installed that transmits to a security company so they can call police which is about the best I can do. I also plan on getting friendly with the neighbors to keep watch for me which can't hurt. We will probably be at the house most weekends so it's not going to be vacant for months and months at a time. I have to agree with your closing statement and like I said in my previous post, lying is not an option for me. When I was young and stupid I did lie on an application for a mortgage and it came back to haunt me for a very long time. I just hope with 10% down and very good credit I will be able to get this loan. If not, then we will keep saving for a larger down payment.
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