New House, First Time Buyer, Bank Loans (Dallas, Conroe: lease, credit score)

[marykate1]

Hi PolTracker,

Thanks! you are right credit card was not a good idea. We are looking into different options. The Wachonovia is giving 6.75% with 5% down payment. We can do 5% down. let's see how everything turns out!

[Beto]

Thats great, glad to hear you have no problem paying $20. I as well have no problem as long as I can help more people achieve their dream of owning a home.

Originally Posted by MDMontemayor

Exactly what I'm thinking. Realtors should be pushing anything that can help stabilize the housing market. I have no problem paying $20 to our goverment to help stimulate our economy, it will be recouped when I sell my house and don't lose by butt because the housing market has went to crap.

[Beto]

Well said.

Originally Posted by Poltracker

The point that person was trying to make is similar to what I replied to your other post. Based on the questions you have asked, and your thought to use a credit card for a downpayment (very wrong thing to do), you are clearly not well-educated in the home buying process and would benefit from having your own RE agent or attorney assisting you. The RE agent who owns the home and is selling it to you is NOT looking after your best interests. She is not obligated to do so. She is obligated to look after her client's interests, her own in this case. She is not obligated to explain available options, contract terms, etc. with you. If you do not have your own representative to do this, you must do it yourself and this could end up badly or not entirely satisfactory for you if you are not familiar or educated in the process. I am not saying it could not be done, but mistakes are easy to make.

[Houston456]

Originally Posted by marykate1

Hi MissDaisy,

Thanks again!!

I just talked to Wachnovia bank and they are giving the 6.74% APR. They don't take down payment through the credit card. So, we will give 9K out of our bank account. When the times comes for FTB then we will surely apply for that!

Thanks for all the help!

Is there any bank that takes downpayment thru credit card ? If thats the case, I can buy a home with credit card and earn $4000 back as Cashback

[LJarrett]

marykate1,

I think what a couple of posters are tying to tell you is that you are coming on these boards asking alot of questions that should be answered by a professional who is looking out for your best interests. If you're saying the seller is a Realtor, yes she is obligated to treat you honestly, but if you don't know what you're doing, then the seller doesn't necessarily have to tell you anything. It could cost you money. Did the seller show you comparables for the area? She is offering to sell it to you so she can basically put 3% back in her pocket instead of paying that 3% to someone who is representing your best interests and doing all of this "legwork" for you. If you are doing all of this work yourself, I suggest you ask the seller to discount the house by 3% if it is not already discounted. She's telling you that you're saving alot of fees, but in reality, its her who is saving from having to pay a buyer's agent.
Just my two cents, as a first time buyer you should have someone guiding you as to the way that will save you the most amount of money. Be sure to read the fine print of your contract, there are very specific time guidelines that must be adhered to. I am sure that the seller gave you the least amount of time allowable for those sections of the contract to look out for her best interest.
BTW, the more you can put down, the better, especially if it lowers your interest rate. Make sure, though, that it is your down payment which affects your interest rate and not an interest rate buydown, which may or may not be worth the points you would have to pay for .25%.
If you do your taxes on line, like through Turbotax, you will be walked through the entire process of filling out the form to get the credit.
I personally would take it. If nothing else you could apply it to your principal or invest it, make some money from it and then apply that to principal. This would, in turn, lower your interest. Or you could just invest it and make money off of it. The good thing about the credit is that it will encourage more first-time buyers to get off the fence, purchase this year instead of waiting, and help boost our sluggish housing market. I don't see how this is a losing situation for anyone.

[LJarrett]

FHA is 6.5% with a 3% down payment.

This is the link to the TDHCA which is the department that administers the bonds and MCC program:

Texas Department of Housing & Community Affairs - TDHCA

[Beto]

Wow, high credit limit I must say.

Originally Posted by Houston456

Is there any bank that takes downpayment thru credit card ? If thats the case, I can buy a home with credit card and earn $4000 back as Cashback

[Beto]

LJarreet forgot to mention the recapture tax. Look into the 3 items they have under criteria for recapture tax.

Originally Posted by LJarrett

FHA is 6.5% with a 3% down payment.

This is the link to the TDHCA which is the department that administers the bonds and MCC program:

Texas Department of Housing & Community Affairs - TDHCA

[LJarrett]

Originally Posted by Beto

LJarreet forgot to mention the recapture tax. Look into the 3 items they have under criteria for recapture tax.

Right, you have to meet ALL THREE criteria to be subject to recapture tax. (1) sell before 9 years (2) make significantly more income (3) profit from the sale.

If your income increases at a rate of 5% or more a year(that would be nice!) and if you sell before 9 years and make a profit you will be subject to a recapture tax. They will figure the amount based on your original mortgage, the amount of time you were in the house, and by how much your income has increased. The tax won't exceed 1/2 of the gain or 6.25% of the sales price of the house. So, really very few people who participate in this program have to pay a recapture tax or if they do it is usually minimal.

If you do qualify for it and the state has funds available, the interest rate is about 1% less than the average interest rates from banks.

So, something to think about.

[LJarrett]

Oh, forgot to mention that it limits what a mortgage professional can make off the loan, which means lower closing costs for you in most cases.