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)
 
Old 03-02-2008, 11:39 AM
 
Location: Utah
68 posts, read 222,547 times
Reputation: 32

Advertisements

I am taking a new job in TN. We currently live in Missouri and while not taking the hit other parts of the country are, we are going to lose a considerable amount of money if we sell our home there right now. We bought for $130,000, owe about $104,000. a friend of ours just bought a home very similar to ours, slightly larger, close but not quite as desirable neighborhood, we back up to a park, and they paid $117,000. Assuming we sell about the same, by the time we pay realtor fees and closing cost we are barely going to break even.

My income will go up considerably over what it was here. I will actually be making about $4,000 / year more than my wife and I together right now. Additionally, I will receive a $9,000 annual increase in 12 months.

My questions:

Is the 3% down FHA still a reality with all the changes taking place?

On REO's are banks likely to loan 100% just to get rid of them for a person with low debt to income ratios. Particularly for trashed places. We are handy and can fix anything ourselves except foundation and electrical work.

If we obtain a one year lease and turn our current home into a rental what percentage of the rent offsets the debt ratio of the original mortgage and again, would a bank maybe consider that equity in financing and REO?

Any advise more than welcome.
Rate this post positively Reply With Quote Quick reply to this message

 
Old 03-02-2008, 12:08 PM
 
Location: Charlotte, North Carolina
5,137 posts, read 15,696,395 times
Reputation: 1008
you can get the HUD homes for $100.00 down (fha financing)
HUD Homes

otherwise it would be a 2.25% down payment
Rate this post positively Reply With Quote Quick reply to this message
 
Old 03-02-2008, 12:23 PM
 
Location: Utah
68 posts, read 222,547 times
Reputation: 32
Quote:
Originally Posted by renriq02 View Post
you can get the HUD homes for $100.00 down (fha financing)
HUD Homes
do you know if we could still do this program if we retain the current home as a rental?
Rate this post positively Reply With Quote Quick reply to this message
 
Old 03-02-2008, 12:27 PM
 
Location: Charlotte, North Carolina
5,137 posts, read 15,696,395 times
Reputation: 1008
If you dont have an FHA Loan on the current property then you have nothing to worry about.
If you do....I think you may need to wait 12months of owning the home with an FHA mortgage before you can purchase another. (not sure on the 12months)
Rate this post positively Reply With Quote Quick reply to this message
 
Old 03-02-2008, 12:47 PM
 
Location: Utah
68 posts, read 222,547 times
Reputation: 32
We have a traditional fixed rate on our current home. I just cannot see throwing away $25,000 even though I realize there is a chance things could dive a lot worse before they get better.

My wife has been networking a bit to see if we can get a FSBO buyer in. If we could get $120,000ish with no broker fee I would go ahead and take the hit so we could move as a family and then go FHA as much as I hate to be back into mortgage insurance again. This job is more than worth it though.

Considering lease option as well.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 03-02-2008, 02:03 PM
 
Location: NC
1,264 posts, read 2,205,836 times
Reputation: 554
Actually you can keep the current home as a rental and count up to 75% of the monthly rental income (with a written lease) towards qualifying.

About your REO questions - the banks will not offer 100% financing just to get the property off their books. If you go to the bank and say to them something like, "Hey bank, I'm interested in buying this property. Under what terms will you finance?"...well, not to say they'll laugh at you, but that will mean absolutely nothing to them. You still need to procure financing through normal channels, even if the same bank owns the property (eg, Wachovia owns the property and you're going through Wachovia for the financing). These are two separate departments with their own rules.

Also something to keep in mind with REOs...if the property is a piece of junk, getting financing may be an issue for that reason alone. Repairs may have to be done to bring it to the lender's standards before they'll even loan you the money. But having said that, there are plenty of REOs out there that are in good shape and will cause you no problems with lender approvals.
Rate this post positively 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

All times are GMT -6.

© 2005-2021, 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