Landlord wants to sell the house

Anonymous · ‎09-01-2016

Alright, the quick run down here.

Last night my landlord called and said that him and his wife are thinking about selling the house, and if that is the case, if I was intrested in buying the house.

First thing first, I would love to buy the home. I think he said his target is around 85K. Its an older house... but we have been living here around 7 years now and more or less made it our home.

Now for the fun stuff here. I will say I have been working to build my credit now for about 1 year now.

I currently have 3 CC, 2 from cap one, and one from credit one. I am in good standings with all 3 and make payments monthly, though the utilization is high.... okay high high. This hurts my score greatly and I know this. Of course, it wont take much to pay it all off either a few months.

I have also a newly opened personal loan for a few months now. Expensive, but I wanted to show that I could have something else in my mix that could show I could make payments on something unsecured....this is around 1500.

I also have an auto loan, of which I owe around 10K on. Ill should have that paid off in about 2 and a half more years. I have 2 other auto loans on record as paid as agreed.

So for the dirty.... yes I messed up not long ago but now trying to repair.

I have 5 collections with one judgement. They are smaller amounts each, but the judgement on is a larger one I only owe like 100 bucks on it but its still on for collections and then the judgement.

As for the general fico scores, I am at currently at 630 EQ, 588 TU, 607 EX. The one for home buying is median of 575. I get a new report in a few days so I should see what I am at better at this time.

Anyways, aired my laundry here the best I could. Now what I am asking is opinions on what I could qualify for and every thing else.

I want to see if he could hold off for another year or 2 ( after all we still are paying rent either way what does he have to lose? ) so I can get my credit cleared a bit more, pay off my debts, or lessen the amount owed.

There is also the down payment thing, being this was not something I really had thought too much about of course I have not save more than a few hundred bucks so I need a year or so to save up for down payment. I would think even with a FHA loan I still need 3.5% down payment .... which I could do for sure if the price point is around 80-90K....5K to save at that rate....less than 500 a month which is something I could do with very strict budgeting.

Anyways, this is going to mess up my world honestly if I have to move. I dont want to. Its a house, and we have gotten stuff that would never fit in an apartment ( I have like 7 fish tanks in the basement! ). This is not including messing up my kids who are disabled so this is going to imapct them a bit more than normal kids....

Arg.... I wish some kind of heads up would have been giving sooner.

BTW, yearly income, should be around 50K before tax. Another think too is I just got hired on there 5 months ago because my last employer closed the plant so of course I had to find another job ( which there was no laspe in employement I was working at the new job 3 weeks after we got notice they were going to close the plant. )...so a bit of aging in employment cant hurt either for I am sure this is another thing lenders look at. I have been in the same industry ( food processing...on was meat and the current one is a bakery ).

Fleuriste · ‎09-01-2016

Maybe you could ask if he would be willing to do owner financing or a lease option.

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Anonymous · ‎09-01-2016

I think I got the jist that he just wanted the paper gone so to say... which is beyond me why because as I have said I still live here and dont plan on moving unless of course, I have to.

Its also not a money pit, I am sure he is making money on it and we are not the ones who really ask for much of anything, in fact we go months without even speaking to him. Its like a yearly check up to make sure I am alive and more or less a christmas card.

I was just kind of hit from the side from this. I know before we moved in he stated that due to the amount of time it was vacent they were thinking of just outright selling the house, but this was 6 or 7 years ago.

The only thing I could see is that he is older and most likely close to retirement...but if he was to move out of state, he would have said all his properties ( I do think he has multiple I never asked. )

Anonymous · ‎09-02-2016

Go to your landlord and tell him what you wrote in your original post. If you've been a good renter for 6 years he might be willing to work with you, giving you another year or selling it on contract. Best if you can buy on contract because in a year it's much easier to refinance and you get to use equity instead of down payment

Anonymous · ‎09-03-2016

tie up the house one way or another...
lease option to buy....
he could carry paper as well..
he isn't going to get a better rate than you will pay!
also...make it win ..win
your terms....his price

Anonymous · ‎09-03-2016

Your credit scores, as they are right now, would make it very difficult to get approved for any mortgage today. You are working on it, which is good, and keep doing the right thing and within a few months you may get to where you need to be, which is 620.

I'm not a expert, but you could even ask him to fund the downpayment for you and that may work out. Hopefully someone here could shed some light on that possibility. If not, due to the low price and relatively low down payment required under an FHA loan, you may be able to get the money from family or some type of loan.

I would set up a meeting with a local lender to explore the best possibilities in your situation.
With your income, you could certainly afford and qualify for the mortgage, which would probably even be lower than your rent!

Good luck!

StartingOver10 · ‎09-03-2016

@Anonymous wrote:
Your credit scores, as they are right now, would make it very difficult to get approved for any mortgage today. You are working on it, which is good, and keep doing the right thing and within a few months you may get to where you need to be, which is 620.

I'm not a expert, but you could even ask him to fund the downpayment for you and that may work out. Hopefully someone here could shed some light on that possibility. If not, due to the low price and relatively low down payment required under an FHA loan, you may be able to get the money from family or some type of loan.

I would set up a meeting with a local lender to explore the best possibilities in your situation.
With your income, you could certainly afford and qualify for the mortgage, which would probably even be lower than your rent!

Good luck!

Right now there are many lenders that will issue an FHA loan with a mid-mortgage score of 580. Below 580, you have to put down 10% of the purchase price and not 3.5%.

The seller specifically can NOT fund the down payment - that is fraud. However, with FHA they do allow the buyer/borrower to receive gift funds for the down payment from a family member (not the seller). The buyer can't borrow the down payment except from his or her 401k or similar retirement fund if available.

The seller is allowed to contribute up to 6% of the purchase price to the buyer for closing costs and pre-paid expenses. It would need to be part of your written purchase agreement.

Anonymous · ‎09-04-2016

@StartingOver10 wrote:
@Anonymous wrote:
Your credit scores, as they are right now, would make it very difficult to get approved for any mortgage today. You are working on it, which is good, and keep doing the right thing and within a few months you may get to where you need to be, which is 620.

I'm not a expert, but you could even ask him to fund the downpayment for you and that may work out. Hopefully someone here could shed some light on that possibility. If not, due to the low price and relatively low down payment required under an FHA loan, you may be able to get the money from family or some type of loan.

I would set up a meeting with a local lender to explore the best possibilities in your situation.
With your income, you could certainly afford and qualify for the mortgage, which would probably even be lower than your rent!

Good luck!
Right now there are many lenders that will issue an FHA loan with a mid-mortgage score of 580. Below 580, you have to put down 10% of the purchase price and not 3.5%.

The seller specifically can NOT fund the down payment - that is fraud. However, with FHA they do allow the buyer/borrower to receive gift funds for the down payment from a family member (not the seller). The buyer can't borrow the down payment except from his or her 401k or similar retirement fund if available.

The seller is allowed to contribute up to 6% of the purchase price to the buyer for closing costs and pre-paid expenses. It would need to be part of your written purchase agreement.

Thanks for the clarifications!

OP, out of curiosity, what is your rent amount?

Anonymous · ‎09-05-2016

also if he's willing to wait a year or so, start a first time lending club account. In NY they match 4 dollars to your 1 dollar towards DP and closing costs.

Anonymous · ‎09-05-2016

@Anonymous wrote:
@StartingOver10 wrote:
@Anonymous wrote:
Your credit scores, as they are right now, would make it very difficult to get approved for any mortgage today. You are working on it, which is good, and keep doing the right thing and within a few months you may get to where you need to be, which is 620.

I'm not a expert, but you could even ask him to fund the downpayment for you and that may work out. Hopefully someone here could shed some light on that possibility. If not, due to the low price and relatively low down payment required under an FHA loan, you may be able to get the money from family or some type of loan.

I would set up a meeting with a local lender to explore the best possibilities in your situation.
With your income, you could certainly afford and qualify for the mortgage, which would probably even be lower than your rent!

Good luck!
Right now there are many lenders that will issue an FHA loan with a mid-mortgage score of 580. Below 580, you have to put down 10% of the purchase price and not 3.5%.

The seller specifically can NOT fund the down payment - that is fraud. However, with FHA they do allow the buyer/borrower to receive gift funds for the down payment from a family member (not the seller). The buyer can't borrow the down payment except from his or her 401k or similar retirement fund if available.

The seller is allowed to contribute up to 6% of the purchase price to the buyer for closing costs and pre-paid expenses. It would need to be part of your written purchase agreement.
Thanks for the clarifications!

OP, out of curiosity, what is your rent amount?

Right now I pay $800 a month. So really, even if the rate is 5% and I put down 10% on a 90K house with all the added fees ( of which I dont fully understand yet myself ) I think I would still be around 600 a month.