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Yeah I heard 50K was the lowest. So maybe get a place for 70K and put 20k down would be smarter? I want her payments to be $300 MAX, am assuming that puts her in the 50-60K mortgage range.
Hoping some mortgage folks chime in here. Have a call in to a realtor I adore, bought my condo from him (he was listing agent), to ask these qs too.
$300 sounds low unless property taxes and insurance are really cheap where you are. The mortgage alone minus insurance and taxes will be around $240 on a $50K loan.
But if it's less than rent she should do it, in fact she can get a roommate to pay $400 a month for the spare bedroom and her home will pay for itself.
I don't want to tie up 50K, is why. I don't mind giving up to 20k (would be a gift, not a loan).
Well, the best way to look at the additional $50K is an investment that would return 4-5%, assuming you charged her a market interest rate - it would also be asset-backed.
The other way would be to just do a home equity loan based on your own property, cosign for her and have her pay the equity note.
$300 sounds low unless property taxes and insurance are really cheap where you are. The mortgage alone minus insurance and taxes will be around $240 on a $50K loan.
They are indeed cheap here. Her BF (aged 21, no family help, so proud of him) just bought his first house, 115K. Taxes per annum, $588. My condo I sold last June, $178.
#shoutout2IND
Well, the best way to look at the additional $50K is an investment that would return 4-5%, assuming you charged her a market interest rate - it would also be asset-backed.
The other way would be to just do a home equity loan based on your own property, cosign for her and have her pay the equity note.
I get what you're saying but nah. I want this as uncomplicated as possible. I'm happy to give her (max) 20K towards it outright but beyond that, nope.
I get what you're saying but nah. I want this as uncomplicated as possible. I'm happy to give her (max) 20K towards it outright but beyond that, nope.
Totally understandable - she might end up paying an extra half point or so, but that’s not a huge thing on a small loan.
My only other thought would be that buying a house at this stage in her life is just going to limit future job opportunities - while IN is indeed low tax, it also has a shaky (at best) job market. When she does graduate, it may entail moving to find her ideal job. Being tied to a house will limit those options.
Totally understandable - she might end up paying an extra half point or so, but that’s not a huge thing on a small loan.
My only other thought would be that buying a house at this stage in her life is just going to limit future job opportunities - while IN is indeed low tax, it also has a shaky (at best) job market. When she does graduate, it may entail moving to find her ideal job. Being tied to a house will limit those options.
Thought of that; she'll rent it out if that happens. I'll be here to manage it. These wee houses rent for around $600 here so that'll be a nice ROI for her. Or just sell it at that point.
my daughter aged 19.5 yr, full time student at Purdue, woks part time (same job since Nov 2017 That's not two years - you may have trouble using her income at all as part-time jobs require a 2 year history. However, her age may come into play and an Underwriter could simply average her monthly income since she started working. If she worked P/T prior to the existing job, that could help.) income around 20k/yr, around 10K in her bank account, perfect banking history X3yr w/same bank (no overdrafts), has own (not secured, regular) credit card since age 18, credit score 750-ish, no debt (I gave her a car, it is paid for). Lives in own apt (no roommates, no lease) since May 2018, rent $429./mo.
I would like to help her buy a small house, with a mortgage payment not to exceed $300/mo. Can't be done.
I can provide her 20% down.
I can co sign mortgage, my credit score stays between 800-850 but I am retired, and have no income (will start to collect SS in 4 years) but significant liquid assets. You could use your Assets, without spending them. It's called Declining Assets income, wherein your liquid assets are calculated as a function of income. There's a spreadsheet and everything.
Would we be able to get her a mortgage on a house around 65-75k? Base payment before adding taxes and insurance is about $400.
I haven't had a mortgage in years, bought my last places with cash, and am unfamiliar with obtaining financing for such a low income/low amount situation.
Thanks in advance
Extrapolating: a $75k mortgage is about a $100k property. You will need to at least factor in property taxes and homeowners insurance. Your monthly payment goal of $300 cannot be met. In fact the monthly payment would be closer to $600 or so.
Extrapolating: a $75k mortgage is about a $100k property. You will need to at least factor in property taxes and homeowners insurance. Your monthly payment goal of $300 cannot be met. In fact the monthly payment would be closer to $600 or so.
I doubt your figures.
My mortgage of 100K IIRC, 3.75% (maybe slightly less, this was years ago but def over 3% and under 4%) rate was around $550, PITI. Taxes were $1500-ish, ins policy $350-ish per annum.
I sold an investment house (paid 35K) in 2016 for 69K. I recall the buyer (I sold it by owner so had direct dealings with her) telling me her mortgage payments (she put very little down as I recall) would be under $300.
I stated I am thinking of a mortgage amt for her around 60K, not 75K. I am thinking 80K max purchase price, in which case I'd put 20K down. Taxes here are ridiculously cheap; as an example, her BF just bought hs first house, 115K, his yearly tax is $558.
She DOES have over two years part time work exp total, thanks for that heads up. She's been working part time, uninterruptedly since June 2016.
#proud
Last edited by VexedAndSolitary; 03-18-2019 at 03:02 PM..
My mortgage of 100K IIRC, 3.75% (maybe slightly less, this was years ago but def over 3% and under 4%) rate was around $550, PITI. Taxes were $1500-ish, ins policy $350-ish per annum. yes, and rates are higher now
I sold an investment house (paid 35K) in 2016 for 69K. I recall the buyer (I sold it by owner so had direct dealings with her) telling me her mortgage payments (she put very little down as I recall) would be under $300. OK we don't know the size of that mortgage tho
I stated I am thinking of a mortgage amt for her around 60K, not 75K. I am thinking 80K max purchase price, in which case I'd put 20K down. Taxes here are ridiculously cheap; as an example, her BF just bought hs first house, 115K, his yearly tax is $558.
She DOES have over two years part time work exp total, thanks for that heads up. She's been working part time, uninterruptedly since June 2016. that is great
My mortgage of 100K IIRC, 3.75% (maybe slightly less, this was years ago but def over 3% and under 4%) rate was around $550, PITI. Taxes were $1500-ish, ins policy $350-ish per annum.
I sold an investment house (paid 35K) in 2016 for 69K. I recall the buyer (I sold it by owner so had direct dealings with her) telling me her mortgage payments (she put very little down as I recall) would be under $300.
I stated I am thinking of a mortgage amt for her around 60K, not 75K. I am thinking 80K max purchase price, in which case I'd put 20K down. Taxes here are ridiculously cheap; as an example, her BF just bought hs first house, 115K, his yearly tax is $558.
She DOES have over two years part time work exp total, thanks for that heads up. She's been working part time, uninterruptedly since June 2016.
#proud
The only way someone buys a $69K home and puts little down and pays under $300 is if they somehow pay the insurance and taxes separately, or if the taxes as $300 a year and insurance is $300 a year.
The only other way I can think of is if they got a USDA direct loan and are under the lowest federal poverty level and were able to pay only 1% interest. The only other way I can think of is if they got that program where Section 8 helps pay for your home and you only have to pay 33% cost and she gets $900 a month.
So I'm not saying you are lying, but she may have given you a wrong number that was so low that I would ask them to prove it with their mortgage statement.
A $69K mortgage even at 3.5% interest is $310 a month, without interest or taxes added.
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Expound, would you?
These wee houses rent for around $600 here so that'll be a nice ROI for her. Or just sell it at that point.
