Bend does not live up to its propaganda (Portland, Eugene: for sale, mortgage)

[BendLocal]

Originally Posted by redguard57

With the rental market the way it is, owning is cheaper than renting.

Unlikely when taxes, insurance, and maintenance are factored in. Many people add in appreciation as an owner but that is an unknown that could go up or down.

[Steve Pickering]

I pay under $500 a month with taxes and insurance for 2,400 square feet with land. Our other place in Coos Bay is owned, but was under $300. One brothers two bend homes are paid for but were under $400 a month, and my other brothers (Wifes) home is also under $400 a month. The Redmond property is also under $500 a month and my Nephews place in Bend is under $600. I don't remember what the Bend rentals were. So yes ownership is much less than rent.

[BendLocal]

Originally Posted by Steve Pickering

I pay under $500 a month with taxes and insurance for 2,400 square feet with land.

If you can buy something reasonable in the Bend area for that amount I haven't seen it.

[redguard57]

Maintenance and repairs are always uncertain, but taxes and insurances are not a big deal if I can find a place for $150K or less.

To rent a single family house in Bend is $1200 to $1700 for something decent - that's the equivalent of a mortgage on a house more than $300-350K.

[BendLocal]

Originally Posted by redguard57

To rent a single family house in Bend is $1200 to $1700 for something decent - that's the equivalent of a mortgage on a house more than $300-350K.

To get an accurate comparison one should include the opportunity cost of the down payment, closing costs, taxes, insurance, initial repairs and rehab and then ongoing maintenance. And the comparison should be with comparable homes in comparable neighborhoods.

[Steve Pickering]

Originally Posted by BendLocal

To get an accurate comparison one should include the opportunity cost of the down payment, closing costs, taxes, insurance, initial repairs and rehab and then ongoing maintenance. And the comparison should be with comparable homes in comparable neighborhoods.

A rehab loan has no down payment.

[BendLocal]

Originally Posted by Steve Pickering

A rehab loan has no down payment.

Are you sure? My understanding was at least 3.5%.

[Steve Pickering]

A Rehab Loan has NO Down Payment




But some unscrupulous lenders may charge a fee for the loan. Our Bank did not.

[BendLocal]

Originally Posted by Steve Pickering

A Rehab Loan has NO Down Payment

Source? As far as I know it is 3.5% which causes PMI - yet another cost not factored by many buyers.

http://www.forbes.com/2010/06/18/fha...ance-203k.html

As of early 2010, you only have to come up with 3.5% of the home’s purchase price plus repair costs to buy a house with this type of loan. So if you were buying a house whose asking price was $150,000 and that needed repairs of $15,000, you would need 3.5% of $165,000, or $5,775, as your down payment. Of course, you’ll also have to meet the usual borrower requirements for an FHA loan, like having a steady, verifiable income and a good credit score.

[Pfhtex]

A "Rehab" Loan can be many things: Homepath, Homepath Renovation, Homestyle, FHA203k, and whatever name a lender wants to give their version of it.

Homepath Loans can be done with as little as 5% down, and do not have PMI. FHA203k = 3.5% down, yes to Mortgage Insurance. Conventional Homestyle could be 3% down, but Mortgage Insurance companies have shied away from that level, so for all intents and purposes Homestyle is a minimum 5% down with MI.

Now, USDA used to do renovation loans, but no longer.

I'm trying to figure out what is unscrupulous about a bank lending on a property that is in need of repair, and - gasp! - actually charging a fee. I mean, how dare they pay their employees, amiright?