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We were pre-approved for a loan (2 mo.ago) We had 60K as our down payment two months ago, approved to buy a home up to about 200K.
We bought land, a great deal but it left us with 15K. Not enough to build a home and weather means we can't live there full time anyhow (even in a motorhome). Our Realtor informed instead of FHA loan, if we wait until Feb2017, no PMI will be involved because we can do a conventional loan. She isn't aware we bought the land because long story short, we wouldn't own it had we not used the same agent as the seller.
The 4 year mark from when we had a short sale is Feb 2017. We live in California
Now we have $15K for a down payment
1. In Feb 2017, do we now have the flexibility to buy a fixer upper? We have much less $$ down, only 15K
We are also considering a Mobile home in a mobile home park but wonder if it's foundation would be up to par (certainly not for FHA)
2. Are we still qualified for 130K loan or did that depend upon how much our down payment is?
We are currently paying $1550 rent per mo. but have very little $ leftover. The houses & rent here is VERY high. Thanks for any advice
2. Are we still qualified for 130K loan or did that depend upon how much our down payment is?
You are only pre-approved with the terms you gave the lender when they did their screening checks and issued your pre-approval. So you would need to inform them of the difference and get a new pre-approval most likely.
That said, you can probably go up to at least a 150k house with a 15k down payment as 10% down will get you plenty of options with conventional loans. You should not do FHA if you have 10% down as the FHA will be a more expensive option.
Thank you atltechdude! The condo we really want goes for 141K (about 3 months ago)
With few options beyond a trailer park and this one condo complex, we will visit the complex with flyers later today. It will contain info we are seeking to buy a condo w/contact info
We have a buyer for the land we just bought, it was listed at $204,000 5 years ago but we got it for 50 thousand listed recently by the womans' estate. Responded the first day it was on the MLS
Now we are re-selling it for $125K to a next door neighbor who wanted it really bad.
So I guess we might be able to buy one of those Condo's outright so won't be getting a loan.
Hopefully that approval didn't lower our credit score but it should be fine, we don't have any debt and
won't be applying for anything regarding credit
We have a buyer for the land we just bought, it was listed at $204,000 5 years ago but we got it for 50 thousand listed recently by the womans' estate. Responded the first day it was on the MLS
Now we are re-selling it for $125K to a next door neighbor who wanted it really bad.
So I guess we might be able to buy one of those Condo's outright so won't be getting a loan.
Hopefully that approval didn't lower our credit score but it should be fine, we don't have any debt and
won't be applying for anything regarding credit
Remember that since you held title to the land for less than a year you will be paying significant capitol gains in your next taxes--CA and Federal!
So do not plan on using all that money as the government wants their share!
If we roll it into a Condo, I thought that meant no taxes? It used to in the mid 90's
I've got some work to do!
ONLY if you lived there for 2 out of the last five years.
And since you owned it for less than a year you could NOT have lived there for two years...and its a lot so it would be hard to say you lived there at all.
And now a days you do not have to buy a replacement property either, but you do not meet the 2 year requirement for that anyway.
Thank you lae60. We will live for 2+ years in our next home, for sure.
In case you or anyone happens to know the answer....We also bought land for 100,00 and have it for sale at $29,000
Say we sold it for $25,000 instead of $29,000 then we'd have lost abut 75 thousand dollars (bought originally for $99.500)
Can I put that 75,000 loss towards the profit on the other land? We'd probably profit about $40,000 on the land + earned wages are about $40,000 a year. With exemptions + deductions, we'd not owe any taxes? seems to come out slightly ahead
I just did this math, adding costs up to sell land plus our tax bracket, standard deduction and 2 personal exemptions (married, no kids)
I called our Accountant and he hasn't gotten back to me yet. Seems we'd not owe any capitol gains
If you have the option to go conventional over FHA always do it. FHA has mortgage insurance for the life of the loan, also there is an extra inspection to make sure passes for safety, security and soundness beyond what a regular loan would.
If you have the option to go conventional over FHA always do it. FHA has mortgage insurance for the life of the loan, also there is an extra inspection to make sure passes for safety, security and soundness beyond what a regular loan would.
Thank you so much.
We'll wait until Feb 2017 to purchase a home so we can do a conventional loan. My husband says there are no homes here for $150K that would likely qualify so we'll use the land money to buy a nicer home.
Hopefully finding a good deal that we will live there for 2 yrs, sell it and pay no capitol gains. Keep doing that every two years or so.
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