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Old 03-29-2011, 08:06 PM
 
53 posts, read 169,676 times
Reputation: 32

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Greetings ~

Some questions for those in the know...

Purchased a home in Orange county in 2005 for 1.45 million

1.15 owed

put over 350,000 cash into backyard...

basically have lost our bottoms on the house.

Moved to Texas for job transfer - house has been rented out and will show rented on our taxes since June of 2009. One month vacancy for turn over in rental. Rent covers mortgage/taxes.

Cannot sell house - house now worth maybe 1.00 even

Want to now buy a house in Texas - looking at under 417,000 ~ cash poor now (boy do we wish we had all the money we put into said house...could buy a house here... )

Are there still 5% down homes? We are looking at VA since my husband was in the navy in his 20's and we have no VA loan outstanding. (He did use it to buy his first condo but we have long since sold it)... we have never had a hard time getting a mortgage but have been told the house in CA is going to be a red flag - "buy and fly" going on all over...
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Old 03-30-2011, 02:44 AM
 
Location: Laguna Niguel, CA
768 posts, read 4,135,117 times
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You can do 0% down on VA financing up to a $417k sales price in Texas. Over $417k you just have to put 25% down on the amount over $417k. So $417k sales price would be a $417,750 loan amount.

You can also just put 5% down with conventional financing in Texas as well, you'd either have to get an 80/15/5 combo loan or 1 loan at 95% with some form of mortgage insurance (monthly amount, or an upfront amount, or financed into the rate).

Since subsequent use of VA entitlement for a VA mortgage has a 3.3% VA funding fee (only 1.5% when putting down 5%), conventional financing & paying the upfront mortgage insurance would be prudent to compare. Not sure what part of Texas you are buying in, but sellers may not find offers using VA financing as attractive as conventional financing, particularly if you are buying in the upper price ranges.

Since you show the rental income on your 2009 & 2010 taxes you'll be able to use the rental income to qualify/help offset your OC's home's mortgage payment.
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Old 03-30-2011, 05:28 AM
 
Location: MID ATLANTIC
8,206 posts, read 20,320,305 times
Reputation: 9467
These are different times and if anyone has trouble with the story, especially when you can support it......like you are living in TX..........like you are renting home.....move on to the next lender. Everyone is so worried about CYA these days, all common sense has fled the building.

VA will not let you use any positive rental income, but they will let you offset the mortgage payment with the rent. VA is a different animal and all about the Veteran. If you can show you have been renting in Texas, there's no reason to believe you wouldn't be occupying the property. Any appraisal ordered for a home that you are under contract to purchase stays with that property for (I want to say) 180 days. So, if lender #1 gives you grief, move on to lender #2, but only after letting them know you plan to notify your representatives and The Department of Veteran's Affairs that they (the bank) are placing extraneous requirements on Veterans. (Can you tell I'm getting rather irritated at where we are right now?)
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Old 03-30-2011, 06:25 AM
 
53 posts, read 169,676 times
Reputation: 32
Quote:
Originally Posted by ShanetheMortgageMan View Post
You can do 0% down on VA financing up to a $417k sales price in Texas. Over $417k you just have to put 25% down on the amount over $417k. So $417k sales price would be a $417,750 loan amount.

You can also just put 5% down with conventional financing in Texas as well, you'd either have to get an 80/15/5 combo loan or 1 loan at 95% with some form of mortgage insurance (monthly amount, or an upfront amount, or financed into the rate).

Since subsequent use of VA entitlement for a VA mortgage has a 3.3% VA funding fee (only 1.5% when putting down 5%), conventional financing & paying the upfront mortgage insurance would be prudent to compare. Not sure what part of Texas you are buying in, but sellers may not find offers using VA financing as attractive as conventional financing, particularly if you are buying in the upper price ranges.

Since you show the rental income on your 2009 & 2010 taxes you'll be able to use the rental income to qualify/help offset your OC's home's mortgage payment.
Thank you - I see you live in my old area... we miss California... Lived in Orange County for 13 years and grew up in San Diego. Anyway - thank you very much - we are living in the North Dallas area. Yes, we do show the rental income on our taxes for 09-10 and have the bank deposits to show for 11 if need be.
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Old 03-30-2011, 06:30 AM
 
53 posts, read 169,676 times
Reputation: 32
Quote:
Originally Posted by SmartMoney View Post
These are different times and if anyone has trouble with the story, especially when you can support it......like you are living in TX..........like you are renting home.....move on to the next lender. Everyone is so worried about CYA these days, all common sense has fled the building.

VA will not let you use any positive rental income, but they will let you offset the mortgage payment with the rent. VA is a different animal and all about the Veteran. If you can show you have been renting in Texas, there's no reason to believe you wouldn't be occupying the property. Any appraisal ordered for a home that you are under contract to purchase stays with that property for (I want to say) 180 days. So, if lender #1 gives you grief, move on to lender #2, but only after letting them know you plan to notify your representatives and The Department of Veteran's Affairs that they (the bank) are placing extraneous requirements on Veterans. (Can you tell I'm getting rather irritated at where we are right now?)
Yes, they really are different times. We really want to hold onto our home in California in hopes that we can recoup some of the $$$$ we poured into it. Not sure when if ever that will happen - but regardless we are not going to do a short sale ~ not a good move for us. And yes, we can 100% show we have been renting here, working here, attending school here. We are here.

And yes I am irritated at where we are right now as well but do understand to some extent the banks fears. I have a friend in New York who is doing exactly what the banks are afraid of us doing - she is buying another home in her and her Mom's name and then said she is going to short sell her current home (which does not have her name on it) - personally I think they will walk if it gets to be "too" much. Anyway... my rant.

Credit here is rated good, we have savings but not liquid and not getting any younger to pull money out of places.
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Old 03-30-2011, 11:58 AM
 
4,246 posts, read 11,036,775 times
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Gotta blow to be cash poor and only spend 400k on a home. I'll pray for you.

But seriously, your 400k home in Texas would be a 2+ million home in Cali.
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Old 03-30-2011, 01:20 PM
 
53 posts, read 169,676 times
Reputation: 32
Quote:
Originally Posted by danieloneil01 View Post
Gotta blow to be cash poor and only spend 400k on a home. I'll pray for you.

But seriously, your 400k home in Texas would be a 2+ million home in Cali.
hahah it is all relative. I would say that a 650,000 house in Plano would a 1.5 - 2 million home in our area.
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