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First Time Homebuyer...Need Advice now!!!please

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Anonymous
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First Time Homebuyer...Need Advice now!!!please

OK. SO here's the deal. I am trying to get preapproved for a loan. I have a steady job but I am currently on LTD because I have cancer. I did qualify for disability through the gov though and right now I get about 2000/mth from that and my insurance. I want to buy a house now with the tax credit and I live in maine and they are doing the "gift of green" which is 5K towards closing/down payment..never has to be paid back and not rolled into the loan. I am looking to buy at least a two or three unit. I want to try and do this by myself but I do have a 25K truck loan. My mom can co-sign for me. But do you think I could get a decent amount for a home without having to put any money down by myself? If my mom we're to be on the loan it would double the income. I have a deepened relationship with my CU who is doing the CUSO loan. I will see them on monday..my fico is 640 accross the board...not great..I know. I work for a **bleep** bank, which I could go through them because they also give me another 5K forgivable loan because I work there But I don't think my credit is good enough to go through my own work..Which is BoA. Should I have my mom co-sign? I'm 30..yep 30 with stage IV breast cancer..crazy...If she co-signs she will live in one of the units. Which is why I am thinking a 3 unit or up.

I know a lot about fico's and cc's but nothing about home loans...HELP 

Message 1 of 10
9 REPLIES 9
Anonymous
Not applicable

Re: First Time Homebuyer...Need Advice now!!!please

I guess I should note that I don't have any money for a down payment and I guess what I'm wondering is if I can do this all without having any cash at all upfront.
Message 2 of 10
SonorityGenius
Established Contributor

Re: First Time Homebuyer...Need Advice now!!!please

Regardless of what people will say, I think you ALWAYS need some money on hand when buying a house. USDA loan programs may include closing costs in the loan but you still end up paying INTEREST on it.

 

 

Message 3 of 10
rockymtngrl
Frequent Contributor

Re: First Time Homebuyer...Need Advice now!!!please

The mortgage guidelines for buying a multiple unit dwelling are different than buying a single family unit. USDA does not do loans for multiple family. For sure you will have to have some cash. As far as co-signers keep in mind that even though having your mom co-sign may double the income you also have to include her debt.
Message 4 of 10
Anonymous
Not applicable

Re: First Time Homebuyer...Need Advice now!!!please

The other reason I am thinking of including my mother is because she and I have one credit card together with about 1/2 of the credit being used and she cosigned on my truck. So it shows the 25K both on her and me and I figure if we go together the bank will see this number not as double but as half. Is there really no way to get a home without money down? And have the seller pay the closing costs?

How much do closing costs run?

What am I looking at paying here?

my moms credit score is about 730 across the board

 

and again I am 640 steady 

Message 5 of 10
WannaHouse
Valued Contributor

Re: First Time Homebuyer...Need Advice now!!!please

Even with the USDA guaranteed loan, we paid about $1000.00 upfront. We paid for our appraisal ($375.00) the first years homeowners insurance (425.00) and a few other small things I think. As far as the interest mentioned above, that was rolled in I believe. We also brought $271.00 to closing.
Message Edited by WannaHouse on 07-06-2009 11:42 AM
Message Edited by WannaHouse on 07-06-2009 11:43 AM

Kathy


We are finally homeowners!!

Closed May 5th-30 yr fixed at 5.25%.

Message 6 of 10
ShanetheMortgageMan
Super Contributor

Re: First Time Homebuyer...Need Advice now!!!please

risingscore, do you work in the mortgage division at BofA?  If not, I'd schedule an appointment with a loan officer elsewhere in the company (probably not your own branch unless you want them to know all about your personal life) to go over your situation to determine what your options are - having a $5k forgiveable loan from them is a pretty nice option you'd want to make sure you would have (or not have).

 

However as far as your questions go, the only true 100% financing programs out there today are VA & USDA financing.  VA financing you need to be an eligible Vet, and USDA financing only does 1-unit properties.  FHA financing just requires 3.5% down, but only with a 1 or 2 unit property.  When you are doing a 3 or 4 unit property with FHA, the down payment is determined by making sure the new mortgage payment not any higher than the qualifying portion of the market rent on the units - this can just be 3.5% down, or here in Los Angeles because the rental rates are still quite a bit less than mortgage payments, it turns into a 10-30% down payment... so just really depends on the market you are buying in.  So if you are fine with a 2-unit property, then with FHA you would be fine with just 3.5% down.  The down payment can be from you, your mom, a gift from family/relatives, can be loan taken out against your 401k/retirement, etc.

 

With FHA loans the seller is permitted to pay your closing costs up to an amount equal to 6% of the agreed upon sales price.  Closing costs are ballparked at about 3% of the sales price, but can be up to 6% or even more depending on the sales price itself.. this is because there is a set amount of costs that any sales price would incur, and a fixed number would be a higher percentage of a lower sales price, and a lower percentage of a higher sales price, etc.

Free Mortgage Advice & Pre-Approvals (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
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Message 7 of 10
Shogun
Moderator Emeritus
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Re: First Time Homebuyer...Need Advice now!!!please

Message 8 of 10
guykara
Frequent Contributor

Re: First Time Homebuyer...Need Advice now!!!please

Decline the promotion.


Starting Scores (10/18/2013): EX: 603 | EQ: 572 | TU: 659
5/05/2014 EX: 628 | EQ: 627 | TU: 623
5/25/2014: EX: 628 | EQ: 635 | TU: 623
Current Scores: EX: 670 | EQ: 663 | TU: 681
Goal Scores: 680 across the board


Take the myFICO Fitness Challenge
Message 9 of 10
guykara
Frequent Contributor

Re: First Time Homebuyer...Need Advice now!!!please

If you need to :-)


Starting Scores (10/18/2013): EX: 603 | EQ: 572 | TU: 659
5/05/2014 EX: 628 | EQ: 627 | TU: 623
5/25/2014: EX: 628 | EQ: 635 | TU: 623
Current Scores: EX: 670 | EQ: 663 | TU: 681
Goal Scores: 680 across the board


Take the myFICO Fitness Challenge
Message 10 of 10
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