U.S. CitiesCity-Data Forum Index
Covid-19 Information Page
Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 09-26-2011, 04:04 AM
 
Location: Anchorage
801 posts, read 1,550,692 times
Reputation: 834

Advertisements

Quote:
Originally Posted by gilgongo View Post
I really want to buy because I feel like we're frittering away the down payment on this tiny apartment with a higher rent than our mortgage would be.
I know your feelings! And it is smart (imho) of wanting to buy while you have this lump sum for downpayment (BUT too bad there is no income at the same time - so, no deal)...

Here is a thought for you: now that you have $200K but can't buy anythig in your area (I think I've been there! ), why not buy something outright elsewhere, then rent it? In some areas, that amountcan buy a duplex that will then bring $1800-2000 rent a month of rental income, thus covering YOUR rent and at least, making it even... until you get income from movie or job/s and can qualify for something in your area.

There are always managing companies to collect rent payments and take care of arising issues that can do that instead of you, taking some % from the total income... Or, a friend in an area that might be willing to do it for you as a favor.

Some people hate the notion of being "landlord", period... some will never think about doing it in another state... some, I am sure, will tell you it's a horrible idea, but, imho, it's worth researching for yourself and sometimes it can work really good!
Reply With Quote Quick reply to this message

 
Old 09-27-2011, 09:13 PM
 
Location: Phoenix, AZ > Raleigh, NC
16,074 posts, read 20,805,166 times
Reputation: 26563
There are HUGE flaws in this equation. If the OP (or anyone else in a similar situation) Is considering going this route, I sincerely hope you will start a new thread BEFORE you drive yourself into a financial pit.
Reply With Quote Quick reply to this message
 
Old 09-28-2011, 07:40 AM
 
Location: Marion, IA
2,796 posts, read 5,626,728 times
Reputation: 1581
You might be able to purchase from a private seller on contract. There are some sellers out there who will happily take the risk on you if you put down a large payment. Because if you default on your payments they stand to keep a huge chunk of money from you. Most banks though are constrained to mandated procedures that say you must have X dollars of income otherwise they can't loan to you.

Put an ad on craigslist stating your desire to buy on contract.
Reply With Quote Quick reply to this message
 
Old 10-22-2011, 08:44 PM
 
Location: Indiana
93 posts, read 193,346 times
Reputation: 156
Quote:
Originally Posted by gilgongo View Post
Thanks for your comments!
The inheritance isn't in a trust. It was in a lump sum that we got last year. Not sure if that makes a difference. Also my mother-in-law gave us some money towards a down payment as well.

I really want to buy because I feel like we're frittering away the down payment on this tiny apartment with a higher rent than our mortgage would be.

Why is it a scam to pay a higher interest rate vs. not be able to get a loan at all?

And our credit scores aren't "low" per se. From what I understand, 740 and above is decent. My husband's (just found out) is 749 - Experian. Equifax is 658. What's the deal with the HUGE difference between the two?

Before the short sale & credit card issues... it was in the high 900s. Mine was around 800. We've always been financially responsible, however, due to some things that happened to us 4 years ago (we lost a baby & some other stuff), everything sort of spiraled for a while. We ignored the credit card issue until we got the inheritance and then negotiated with the credit card companies to do charge-offs on them.

850 is the highest score. It is not possible to have high 900's.
Reply With Quote Quick reply to this message
 
Old 06-06-2013, 12:43 PM
 
Location: The beautiful Rogue Valley, Oregon
7,785 posts, read 16,214,421 times
Reputation: 10565
Tagging on here - somewhat similar situation, except we have an excellent FICO and no negative history. We would be putting down half the purchase price ($100k on a $200k purchase). We do own our present home free and clear (value is, conservatively, nearly double what we are looking to buy), but it is somewhat of a "specialty" property and will take some time and clever marketing to sell. Our income consists of a 72T, our sporadic consulting income (less than $10k) and my investments (dividends, etc - they are all under my control, not under management). The spouse turns 62 next year and he will draw SS as well. I would be able to take the entire $200k out of invested savings, but I'd take a huge tax hit on it and I'd rather not. Taking the $200k out would put a dent in the "basket of eggs", but not a fatal one, particularly as there is the sale of our present home on the flip side.

What are my best strategies here? I'd prefer a loan to taking money out of savings, but I am doubting the mortgage companies would see us as attractive. What are the possibilities in securing an equity loan on our present home, given our income situation?
Reply With Quote Quick reply to this message
 
Old 08-01-2013, 10:23 AM
 
Location: NJ
20 posts, read 45,108 times
Reputation: 15
maybe with a 100% down payment you can.... Those days are gone sorry to say you need to be employed if your loan will have Fannoe and freddie as the investors.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
Follow City-Data.com founder on our Forum or

All times are GMT -6.

© 2005-2020, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top