topic Re: Newport, OR, here I come in Mortgage Loans

Newport (er, Lincoln City) OR, here I come

Imperfectfuture — Mon, 28 Mar 2016 21:58:57 GMT

Gonna do it. Looked at the pre qual. Did post elsewhere my rent and current utility costs.

But, I always wanted to live along the coast, and WA state just too cold. Newport more mild, and still beautiful. And, considered rural (need to get obscure here). Have to apply through Oregon, they are mailing pre qual stuff (though I know I could do it faster, want some pay down and move debt for other cards before first credit check). This also changes my spending priorities for mileage to homeownership.

An additional perk, I am already on Section 8, have been since 2003. Regular, not tied to any place. USDA Direct told me they can use this with the loan (I looked it up, can convert to section 8 homeownership if in good standing, and first home, yeah, me). So with a full value of 865, this would be considered the rent I am paying now, and adds to my mortgage amount. Will be able to afford more (or pay less) .

Great forum, so glad I cleaned up my credit.

Edit 1/24:

Have selected realtor, though also have plan B and C in place for selections.

Followed Lemmus's advice to OPT Out.

Reading Every thread about USDA Direct in my Fico.

Edit 1/26

Pre App arrived.

Thinking of cheaper plot of land and modular.

Read all the documents (or most) on USDA site.

Am I obsessed yet?

Edit: 2/3/2016

Obtained a mortgage Scores, 712 middle

Received email response on how to report credit cards and other info

Called, and will be sent app instead of needing to pre qual, she changed her mind when I read off the mortgage scores.

Edit 2/14/2016

Happy Valentine's Day

Changing real estate agent due to trying to coax me into what I can not afford.

How I came up with amount of 130k+ possible mortgage.

Switching to Plan D as new plan A or B

Edit 3/28 Pre approval estimate.

Re: Newport, OR, here I come

Imperfectfuture — Fri, 22 Jan 2016 17:43:51 GMT

Oh, will update with process.

Re: Newport, OR, here I come

azguy13 — Fri, 22 Jan 2016 17:48:21 GMT

Congrats on starting the process and definitely keep us up to date! This is an area I love to learn more about and it is exciting seeing someone who is so active on the forum go through it.

Re: Newport, OR, here I come

Imperfectfuture — Sat, 23 Jan 2016 05:33:23 GMT

Thanks. Can not beat the no sales tax. Especially coming from 9.6%. Business licensing a bit more expensive, but somewhat cheaper in other ways than Seattle.

Re: Newport, OR, here I come

mattmyFIC0 — Sat, 23 Jan 2016 18:10:43 GMT

Newport is great! We like to visit there and will be again this summer

Re: Newport, OR, here I come

Imperfectfuture — Sat, 23 Jan 2016 18:17:03 GMT

Have decided on Mobile Home. Upscale. Approved for USDA manufacturers. Just have to find a way to get the land where I want it. . Looks like a little around 110,000? Including new washer and dryer.

Re: Newport, OR, here I come

Imperfectfuture — Sun, 24 Jan 2016 18:47:24 GMT

Still waiting on mailed pre app. Want to file taxes first. My main client getting cheap. Gonna remind him agreement is binding, and if he chooses to make less money by running less hours, that is not my fault. I also do not work for free.

May add sub contractor for this area if I can get her trained. Got her a card. I want another client in this area (already on five projects). She could support clients in this area, and I would set up the computer profiles for her to do some work.

Have selected realtor, though also have plan B and C in place for selections. Plan A is to get foreclosed lot space, and tear the dang thing down. The best spaces are all filled. Waiting for application, and by then, the prices should drop to the cost of other lots in finer neighborhoods. Then, the guy tearing down is also selling the new gig, and I plan to upgrade as much as budget allows. The highest this can go is 170k, so a bit more than the 110k I was hoping for. They are definitely paying closing. Putting in as construction, build.

Followed Lemmus's advice to OPT Out. Ah, I shall miss those mailers. But can not take the chance that ages ago junk debt shows up as new. Bookmarked the page, will opt back in just before closing (since want to use same address). Had my first SCT yesterday too. Oh well, later days.

Reading Every thread about USDA Direct in my Fico. Did a search. Swear to self, must get back to work tomorrow. But what I am ordering is so Purdy. I CAN see the value of a Lowes or similar card down the road. Who knew?

Feeling motivated, stoked, and with a new obsession. Would be keen if could get done in Summer.

Re: Newport, OR, here I come

Anonymous — Mon, 25 Jan 2016 01:15:40 GMT

Sounds awesome.

I wasn't a believer in the lowes card until I closed......Cannot. Stay. Away.

Re: Newport, OR, here I come

Gunnar419 — Mon, 25 Jan 2016 02:32:26 GMT

Newport's beautiful!!!!! Oregon coast is generally much prettier than the Washington coast as well as being warmer. Stay above the tsunami zone!

Re: Newport, OR, here I come

Imperfectfuture — Mon, 25 Jan 2016 05:07:30 GMT

LOL.

Re: Newport, OR, here I come

Imperfectfuture — Tue, 26 Jan 2016 20:57:17 GMT

Pre App arrived. Pretty neat they list the cities that you can not buy in. It's still Newport for me. Might start with bicycle to help with transportation. Was going to do moped, but need another driver test in Oregon. Last driver test in 90's, no one wanted to test me, had to wait till end of day for supervisor to do it. My last W2 jobs were actually driving for auctions, but first day on both sites, got sent home. My movement disorder scares people. I have not driven since 2008, may need a disability exception here.

Thinking of cheaper plot of land and modular. Plan A is switching. My utilities are written off via section 8, so do not need HOA fees to cover those. Was going to do well built mobile in 55+ park. That may go to plan b, since all spots are taken. The land is a little cheaper further North, and Modular seems better. Need some quotes. Always have plan a, b, c, and maybe D.

Read all the documents (or most) on USDA site. Learned about gross up for fixed incomes. Learned I am above the extra low income for regular Section 8, so probably no problem converting to combine with USDA Loan. Hope to get minimum payment from section 8 of 661 (that is their payment, I pay a portion of that). USDA then combines the payments between the two programs, saves them money, and decides on total PITI payment, then their subsidy. Fun math, took awhile to get the hang of it. Other income tbd.

Am I obsessed yet? Bet realtor and builder will be getting calls this week. Business will be almost year old at end of February, so can claim income. Also, waiting on dividend report (some was mlp income) to declare. Have not looked that up, I usually just let that income drip into stocks. Makes the next batch of dividends more.

Hope everyone else is enjoying this time. Kinda gets your mind off apping for credit cards. Am NOT looking forward to moving from Seattle to Newport. Think i can hook sister and her BF to help load truck, dump furniture, and drive. Otherwise, at a loss.

Re: Newport, OR, here I come

fot1 — Wed, 27 Jan 2016 00:58:51 GMT

Love Newport, it is one of about 5-6 areas I am looking to buy land/or a home to move to in the future. Looking forward to the show discovery channel will be doing up there.. Hopefully it doesnt draw to much attention to the area. lol

Re: Newport, OR, here I come

Imperfectfuture — Wed, 03 Feb 2016 07:06:30 GMT

So, got bored. Spent money (not good ) on reports with promo code.

Statistics
Current overall utilization 7%
Citi 20%, next report slightly under 30%
Barclays 1 10%, next report 0%
Barclays 2 8%, next report around 6%
Chase 1 5%, next report 0%
Chase 2 9%, next report 6%
Amex on report, 4%, next report 0%

Total utilization next report: about 5% on three cards

Current mortgage scores
Experian 696 (yuck)
Transunion 712, better
Equifax 728 (same as my Fico 8, lowest 8 score, highest mortgage, weird)

Middle 712.

So, will the new report lead to higher? Should I apply more to citi? Do mortgage scores fluctuate like Fico 8?

Am I good to go for app at end of month?

Re: Newport, OR, here I come

Imperfectfuture — Wed, 03 Feb 2016 18:53:32 GMT

Official response , though I think I will call to see if I can skip pre qual.

"To get started with the Direct Loan Program please fill out the pre-qualification form, as completely as you can, and return it to Rural Development. You do not need to include any credit accounts that do not have a balance. If you pay the account in full each month it does not need to be included as a debt. You will need to provide documentation of your section 8 assistance and any other household assistance you receive as well.

Once Rural Development has received the pre-qualification, a loan technician will review your information and be in touch with you by letter or phone. You will need to contact Section 8 directly in order to inquire how the assistance may transfer if you purchase a home."

Re: Newport, OR, here I come

Imperfectfuture — Wed, 03 Feb 2016 19:11:28 GMT

Called, am having the regular app sent, so will start on port process, and working with realtors to get some kind of construction price.

Re: Newport, OR, here I come

Imperfectfuture — Thu, 04 Feb 2016 10:43:17 GMT

Aaarrrggghhh, stress. Ran into snag, was so optimistic. One government program does not want to comply with another. Dang, hoops to jump through. Thought it would be smooth.

Re: Newport, OR, here I come

Imperfectfuture — Thu, 04 Feb 2016 20:11:52 GMT

Yeah, stress alleviated (directors are better). Programs will work together.

Re: Newport, OR, here I come

dragontears — Fri, 05 Feb 2016 16:50:00 GMT

Thank you so much for posting this thread. Because of it I have spent hours reading about USDA loan program and housing assisting programs. My mother is in a similar situation as you (low income with section 8 housing assistance) and we had no idea she could potentially qualify for a mortgage.

Also Oregon is lovely, I grew up there and mom still lives in OR.

Re: Newport, OR, here I come

Imperfectfuture — Sun, 14 Feb 2016 13:19:52 GMT

Moved, see below (hard to do on iPad, kept deleting).

Re: Newport, OR, here I come

Imperfectfuture — Sun, 14 Feb 2016 13:25:41 GMT

Happy Valentine's Day (editing)

Changing real estate agent due to trying to coax me into what I can not afford. All names changed to protect the not so innocent. Started with Tim, claimed he was very familiar with USDA Direct, and could get it done. Turned out, he was pushing for max loan, between 170k and 220k. People in that range are usually placed on the Guaranteed program, which is not where I want to be. Ben was not familiar with USDA direct, but familiar with construction. Both these guys were pushing me towards the same manufactured dealer in Depoe Bay, but I was warned by the Portland USDA LO to only use the guys on their list. So I had called a couple on the list, and the recommended guy, Jimmy, was making his own prices up. Turns out, he buys land, then constructs, and charges quite the premium, no negotiating. Minimum he wanted, 180k before upgrades.

The price is important. USDA allows for appliances, including washer and dryer. I also want Fireplace, better roof, and energy star upgrade. If the dealer and agents are not willing to work in this area, then one needs to move on. There is also insurance and property taxes to consider, More on property taxes and elderly/disabled in Oregon later. I am now with a Dealer that is approved, and can verify the appraisal value, and a RE agent in Lincoln City that is great. Need someone to handle payments for construction. Since the others were more concerned with maximizing value (how much can you afford) when did real estate agents become car salesmen? Ben was not even familiar with land enough to know you could not build there.

How I came up with amount of 130k+ possible mortgage. Your base fixed income is upped by 120% for repayment purposes. Annual income is used to determine program (direct vs guaranteed) while repayment income is used to determine you mortgage amount. So a base SSA payment of 1400 gets you over 1600 in monthly repayment. They add on any public assistance, mine will be direct transferred from Oregon to Washington. The state uses its own formulas for self employment, saying I have more than I make. Otherwise, send in the same form you use for section 8, I choose to do average monthly. This will be profit and loss statement for USDA. Keep these records for Section 8.

Anyone with Section 8 knows about medical deductions. Since the medical deductions are taken out of your HAP (HAP stands for housing assistance payment), I need to verify that sending into USDA is not necessary (duplication of effort). Also, your HAP payment will be used for your mortgage payment, so you get the 1% interest rate, allowing for more mortgage than the 24% or 26% income subsidies.

Lincoln County allows for housing program, but is not familiar with it. I am going to try and have another housing authority handle it (both should be happy with this arrangement). You are only allowed the HAP amount as if you are renting. My initial mortgage amount will list Seattle section 8, I will write an LOE. The single bedroom allowance is 661 (or thereabouts) in Lincoln county. You can up that by 120% as non taxable income for good reason. First off, there are no single bedroom manufactured homes that meet the specs for USDA. They require double wide. Second, I intend to have a ramp, so that would be an allowance. 661 upped by 120% is 796. Actually more than the HAP I have in Seattle (I know how to find properties). Remember, they will allow 30% of adjusted income for housing payment, but if your insurance and property tax, plus mortgage and utilities, comes out to more than 796, then you must pay the extra. Lincoln county has expensive property taxes. My TI of PITI will be about 213 per month. So 130000 at 1% is 418 per month, 30 years. Add on TI for the first five years, 622 about. Gives extra for utilities. Can even up a little for closing costs.

Now, total income for repayment and mortgage purpose, before add ons is 2476 (your non taxable income, including HAP, grossed up 120%). Then I can add on investment income, dividends, and self employment. Self employment is allowed if business is one year old, which mine will be in March. Go easy on the deductions, it is better for you. Also include an LOE that one bedroom in home is to be used as office. Calculate the square footage, and you can present that portion of Piti for deduction against income. Oregon also allows deferred property taxes after five years of home ownership. Must be elderly (over 62) or disabled. In five years, I will be 61, so either will apply. Consequently, with modest income calculations of 2600 per month repayment (is probably more) should qualify for around 130k mortgage. And, my payment will go down in five years. Note, with section 8 and self employment, you payment will fluctuate with tax statements, but you need max mortgage to start. DO NOT go back and redo prior tax years, what is done is done. Just know next year, you can go back to regular. Also, straight line depreciate any office equipment (table, computer, etc). You can add that income back in for mortgage purposes (will be doing table and computer, not chair from 2001. Lol).

Switching to Plan D as new plan A or B. With my wanting to minimize, I have switched out of Newport, and into looking at land in nice neighborhood with walk score 68 (better than anything in Newport). I am customizing a base 2 bedroom unit, gives me 1100 sq ft with stretch, and al upgrades should be around 80k. Want land at 35k, so that is offer, or 39k, 4k for closing. Will be filling app out this week, calling about whether to add medical deductions. Will be calling other housing authority, but have main contacts for Lincoln county as well. Another switch is having your current housing authority pay, I will just find the best method possible.

With price for home and land around 115k, allows 25k construction (foundation, hook ups, cable lines, city fees). So not into bad shape if mortgage goes to 140k. But want the lowest for best possible, and think I found the team to do it. Anyone wanting contact details can M me (no, I am not reimbursed, just helping.). Note, I will not give out section 8 contacts until final transfer, since spaces are limited. Once that is done, will update, and you can get info then.

Edit to add: you can use section 8 with FHA and USDA guarantee. Best for families with larger bedroom size, must be in family fss program. Otherwise, get lot less mortgage. Do some googling on this, because you need financing if purchasing in cities like Portland.