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Old 02-13-2008, 04:07 PM
 
30 posts, read 37,231 times
Reputation: 13

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Anyone know of any downpayment or homeowner assistance programs that would fit our situation?

My wife an I are recently married. We both make a decent income ($130K annual combined) and we have very low to medium debt ($8K revolving, $12K installment). Our scores are low to high 600's (mine- 635 mid, hers -674 mid).

We've been renters our entire lives and had it not been for the situation I'm about to describe then we'd continue to rent and build a nice downpayment.

Last fall my wife's father passed away very unexpectedly. He had planned very well financially however it is taking some time to work through his accounts and his estate. My wife's mother however is disabled (a quadripeligic) and requires daily assistance to feed and bathe herself. Together they lived in a rent controlled seniors independent living complex about 30 minutes away. He cared for her with the help of private aides and nurses. A few weeks after the funeral and deciding what to do we settled on the prospect of buying a home and moving her in, instead of committing her to a nursing facility. She's been spending a total of $1275 per month on private nursing care in addition to her rent and living expenses (which are minimal) to provide nursing care while we work and try to find a new place to live.

We've applied and been pre-approved conventional for $400K 5.8% with 5% down or 6.15% FHA. The problem is homes in our area (NY) are so expensive and coupled with insanely high property tax we're finding it hard to even commit 3% down. Between our savings, recent tax returns, and a future sales bonus I've estimated we could scrape together at most, $16K for downpayment and closing costs. A starter home in our area starts at $275K and for the space we need (I work from home) we'd need to spend at least $300K-$325K, to find the right home that offers what we need (mother/daughter, home office...etc). Taxes start at $6K and range, on average between $8-10K..... THIS YEAR (who knows about next year). We both have steady jobs and more than 4 year steady employment. We make over the qualifying amount for SONYMA however we still can fit into FHA (county limit is $362K).

-What are the best downpayment programs out there and the ones to avoid?

-My wife is named as Power of Attorney over her mothers finances and is named on both a checking ($30K) and a CD ($95K). Can she use declare those accounts as assets when we apply for firm financing? We don't want to tap into those accounts for our down payment, however my ML will contribute toward our monthly PITI. We also plan on naming her as a dependent on our next year's taxes.

-Is there any grant assistance that would help us in this situation. We are buying a home in order to give my ML a safe place to live. It's a shot in the dark however you hear about $millions in HUD grants that go unused each year. If they exist where would I look for grants?

-On a $325K home with $9K in taxes is over $3100 per month PITI. We can rent the same home for $2000 per month (no utilities incl). We have no idea how long we could be in this living situation. We'd like to have kids and raise a family. Does it make sense in the short term to rent until we can improve our credit scores and save a larger downpayment?

Last edited by ukikkgr; 02-13-2008 at 04:16 PM..
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Old 02-13-2008, 05:20 PM
 
Location: Falling Waters, WV
1,502 posts, read 7,361,454 times
Reputation: 815
I myself would save, save, save. I am not a realtor or anything but I do know that there were ways around the mortgage insurance like taking out 2 loans. My husband and I once did a conventional self insured loan but we had 15% to put down. The mortgage crises have pretty much made it impossible to get a mortgage.

You 2 together are making decent money so I would skip the starbucks and start putting the money away. Banks like to see that you have the money in your account and will make you document it. There are plenty of ways to put a little away.
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Old 02-13-2008, 05:38 PM
 
30 posts, read 37,231 times
Reputation: 13
Quote:
Originally Posted by Janipoo View Post
I myself would save, save, save. I am not a realtor or anything but I do know that there were ways around the mortgage insurance like taking out 2 loans. My husband and I once did a conventional self insured loan but we had 15% to put down. The mortgage crises have pretty much made it impossible to get a mortgage.

You 2 together are making decent money so I would skip the starbucks and start putting the money away. Banks like to see that you have the money in your account and will make you document it. There are plenty of ways to put a little away.
While in a perfect world I would agree... to save, save, save (we were able to save $15K in one year between savings, tax returns and cutting back) the one thing we cannot enjoy is an extended period of time. My mother in law is living alone (mostly bedridden) until we can create a proper living situation. We have friends and other family helping out however we have the burden of arranging the care for her... over 30 miles away. We live in a one bedroom apartment.

So our options are to rent a house at $2000 per month, minimal deductions only to move again in a year or two (not an easy thing when someone needs assisted care) OR we need to bite the bullet, find a house that we enjoy and can afford and get on with our lives.

These are the two ONLY options.



I'd be open to consider a rent with the option to buy as well ( a portion of our rent going toward the downpayment) until everyone is beyond this housing mess, however as bad as things are I'm afraid things won't get much better for us down the road. Although housing prices locally are sliding currently they inevitably have no where to go but up (we're 60 miles north of NYC... a constant pool of fresh buyers)... prices along with interest rates, and property taxes can only go up. Everything is growing expotentially... well everything but my income.
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Old 02-13-2008, 05:46 PM
 
Location: Louisiana - someday Maine
474 posts, read 1,411,455 times
Reputation: 332
Quote:
Originally Posted by ukikkgr View Post
Anyone know of any downpayment or homeowner assistance programs that would fit our situation?

My wife an I are recently married. We both make a decent income ($130K annual combined) and we have very low to medium debt ($8K revolving, $12K installment). Our scores are low to high 600's (mine- 635 mid, hers -674 mid).

We've been renters our entire lives and had it not been for the situation I'm about to describe then we'd continue to rent and build a nice downpayment.

Last fall my wife's father passed away very unexpectedly. He had planned very well financially however it is taking some time to work through his accounts and his estate. My wife's mother however is disabled (a quadripeligic) and requires daily assistance to feed and bathe herself. Together they lived in a rent controlled seniors independent living complex about 30 minutes away. He cared for her with the help of private aides and nurses. A few weeks after the funeral and deciding what to do we settled on the prospect of buying a home and moving her in, instead of committing her to a nursing facility. She's been spending a total of $1275 per month on private nursing care in addition to her rent and living expenses (which are minimal) to provide nursing care while we work and try to find a new place to live.

We've applied and been pre-approved conventional for $400K 5.8% with 5% down or 6.15% FHA. The problem is homes in our area (NY) are so expensive and coupled with insanely high property tax we're finding it hard to even commit 3% down. Between our savings, recent tax returns, and a future sales bonus I've estimated we could scrape together at most, $16K for downpayment and closing costs. A starter home in our area starts at $275K and for the space we need (I work from home) we'd need to spend at least $300K-$325K, to find the right home that offers what we need (mother/daughter, home office...etc). Taxes start at $6K and range, on average between $8-10K..... THIS YEAR (who knows about next year). We both have steady jobs and more than 4 year steady employment. We make over the qualifying amount for SONYMA however we still can fit into FHA (county limit is $362K).

-What are the best downpayment programs out there and the ones to avoid?

-My wife is named as Power of Attorney over her mothers finances and is named on both a checking ($30K) and a CD ($95K). Can she use declare those accounts as assets when we apply for firm financing? We don't want to tap into those accounts for our down payment, however my ML will contribute toward our monthly PITI. We also plan on naming her as a dependent on our next year's taxes.

-Is there any grant assistance that would help us in this situation. We are buying a home in order to give my ML a safe place to live. It's a shot in the dark however you hear about $millions in HUD grants that go unused each year. If they exist where would I look for grants?

-On a $325K home with $9K in taxes is over $3100 per month PITI. We can rent the same home for $2000 per month (no utilities incl). We have no idea how long we could be in this living situation. We'd like to have kids and raise a family. Does it make sense in the short term to rent until we can improve our credit scores and save a larger downpayment?
If you only need $20,000 down payment (5%) on a $400k loan AND since your mother-in-law will be living with you in your new home, why not take the $20k out of the shared checking account?
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Old 02-13-2008, 05:55 PM
 
30 posts, read 37,231 times
Reputation: 13
Quote:
Originally Posted by ILUVMAINE2 View Post
If you only need $20,000 down payment (5%) on a $400k loan AND since your mother-in-law will be living with you in your new home, why not take the $20k out of the shared checking account?
We'd like not touch that at all IF possible. She doesn't have a ton of retirement left. In addition to the $125K in savings and investment she only earns $1286 per month between SS and pension. She's already eating into her principle just paying for extended care through private nursing aides. At the current rate we believe she'll have enough retirement to hold her this way for 10-12 years. I'm sure we could borrow the $$$ and pay her back, but honestly I would feel more comfortable just trying to secure the financing on our own. We need to reserve every cent she has for medical expenses.

$100K doesn't go very far these days when all you have is Medicare and minimal private health insurance. I get upset when I think about it... then I think about my own parents who are in a far worse position.
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Old 02-13-2008, 05:59 PM
 
Location: Falling Waters, WV
1,502 posts, read 7,361,454 times
Reputation: 815
Quote:
Originally Posted by ukikkgr View Post
We'd like not touch that at all IF possible. She doesn't have a ton of retirement left. In addition to the $125K in savings and investment she only earns $1286 per month between SS and pension. She's already eating into her principle just paying for extended care through private nursing aides. At the current rate we believe she'll have enough retirement to hold her this way for 10-12 years. I'm sure we could borrow the $$$ and pay her back, but honestly I would feel more comfortable just trying to secure the financing on our own. We need to reserve every cent she has for medical expenses.

$100K doesn't go very far these days when all you have is Medicare and minimal private health insurance. I get upset when I think about it... then I think about my own parents who are in a far worse position.
You are so true. Especially assistant living is very expensive per month.
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