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Old 10-28-2008, 11:34 AM
 
941 posts, read 3,488,667 times
Reputation: 633

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I want to buy a cheap house up in NY - I currently live in MD. I will move in the house eventually...[few months after securing a job up there]. Can I get a mortgage for a house that won't be lived in immeidately after closing? What types of mortgage is available to me? I most likely will buy a house that needs work as I don't make much. Would that be an issue?

Credit is no problem, 800+ on all three, and last month [9/98] hit 10 years. Looking for a house below 100k, about 25-75k. Hardly any debt, just a few grand on one credit card with only 8% APR. No car payments or anything else.

Really, I have no idea how this works. I read some threads on here, but the jargon only deepens my confusion.

Thanks!
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Old 10-29-2008, 07:54 AM
 
69 posts, read 330,949 times
Reputation: 59
I'm confused by your post. Are you a first time home buyer (don't currently own a home) or are you talking about buying a secondary residence (you own a home and want to buy a second home)?
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Old 10-29-2008, 03:02 PM
 
Location: Laguna Niguel, CA
768 posts, read 4,142,055 times
Reputation: 456
Quote:
Originally Posted by filmsniffer View Post
I want to buy a cheap house up in NY - I currently live in MD. I will move in the house eventually...[few months after securing a job up there]. Can I get a mortgage for a house that won't be lived in immeidately after closing? What types of mortgage is available to me? I most likely will buy a house that needs work as I don't make much. Would that be an issue?

Credit is no problem, 800+ on all three, and last month [9/98] hit 10 years. Looking for a house below 100k, about 25-75k. Hardly any debt, just a few grand on one credit card with only 8% APR. No car payments or anything else.

Really, I have no idea how this works. I read some threads on here, but the jargon only deepens my confusion.

Thanks!
Hey there filmsniffer (how does film smell?),

If you are buying a home that you aren't going to be immediately moving into, and isn't close to where you work now, an underwriter (the person at the lender who approves your loan) will want you to purchase the home as non-owned occupied. Non-owner occupied loans require at least 15% down, and in some cases 20%. Used to be able to put just 10% down but mortgage insurance providers (mortgage insurance is needed when less than 20% down) are only insuring mortgages up to 85% LTV on non-owned occupied now.

You might want to secure employment first, then buy a home, as then you will be able to buy it as an owner occupied home and only put 3% down. Further, since you are looking to buy something that might need a little "elbow grease", you can buy a primary residence with an FHA 203k Rehab loan that will let you finance some of the improvements/repairs into the loan amount.
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Old 10-30-2008, 09:39 AM
 
941 posts, read 3,488,667 times
Reputation: 633
Quote:
Originally Posted by sheepla View Post
I'm confused by your post. Are you a first time home buyer (don't currently own a home) or are you talking about buying a secondary residence (you own a home and want to buy a second home)?
I live in a house, yes, but legally, it doesn't belong to me even though I pay utilites and tax. It belongs to my parents who refuse to sell. I merely am the caretaker. I am welcome to live in as long as I'd like to, and may contiune living here even if I buy a house of my own.

Does this clear up the confusion?
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Old 10-30-2008, 10:42 AM
 
941 posts, read 3,488,667 times
Reputation: 633
Quote:
Originally Posted by ShanetheMortgageMan View Post
Hey there filmsniffer (how does film smell?),

If you are buying a home that you aren't going to be immediately moving into, and isn't close to where you work now, an underwriter (the person at the lender who approves your loan) will want you to purchase the home as non-owned occupied. Non-owner occupied loans require at least 15% down, and in some cases 20%. Used to be able to put just 10% down but mortgage insurance providers (mortgage insurance is needed when less than 20% down) are only insuring mortgages up to 85% LTV on non-owned occupied now.

You might want to secure employment first, then buy a home, as then you will be able to buy it as an owner occupied home and only put 3% down. Further, since you are looking to buy something that might need a little "elbow grease", you can buy a primary residence with an FHA 203k Rehab loan that will let you finance some of the improvements/repairs into the loan amount.
So good! Love the smell..hence the username.

Ouch, that does cut in the budget a bit. If I have to pay that much up front, I'd better wait till I secure employment in the area I want to move into. I had intended to secure a low down payment so I can have more money for unexpected expenses for the next six months upon move-in. I can't be myself without having a large liquidity. I won't have to worry about my current residence, I can always come back here if all else fails.

What are the requirements of the FHA 203k? Would like it if I could go FHA. I'm just not sure if I can meet their requirements, and what they look in houses they're going to finance. I did read up on it, but I'd forgotten...must be all that film sniffing.
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Old 10-30-2008, 12:12 PM
 
Location: Laguna Niguel, CA
768 posts, read 4,142,055 times
Reputation: 456
Is film like glue? Just kidding.

Yeah the non-owner occupied route is tough unless you have the liquidity to make it happen. This is why a lot of those quasi- real estate investors are out of the game, they could only buy rental properties when you could do 100% financing and stated income. Now you need to document income and put some blood in the game, while having decent credit.

You can read up on the basics of the 203k rehab program at Rehab a Home W/Hud's 203k Rehab Program. While at one point it could be used for non-owner occupied homes, it was widely abused, and is now only for primary residences.
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