Ultimate Buyers Guide - By Celerity

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I'm not self employed.

Also, Micah, good luck with the rent-to-own option. I wish I could get into that. The nice thing is the possibility, the bad thing is that your choices of houses is almost non-existent. You have to take what's presented to you.

I, however, have that mid 600s credit rating, and I make a pretty penny. I was able to get the Fannie Mae. Were you given a specific reason why you couldn't get it ?
 
I just skimmer through your post and it has alot of great info. I'm soon to be in the market for my first house. One thing i did notice you missed (or maybe i missed it in my skimming) Was the tax break you get. The first 8-10 years you own your home 100% goes to the intrest and nothing goes into the principle of the loan. You can claim every penny that you pay of intrest right? At least this is what i've been told i don't actually know for a fact. Since i'm a newbie to home buying let me hear what you think. I have a household income of 80k, My credit score is currently 738. What kind of deal SHOULD i be able to get from the bank? I have no clue as to how everything works and i've been trying to read up on it but alot of it just sounds like jibberish.
 
I just skimmer through your post and it has alot of great info. I'm soon to be in the market for my first house. One thing i did notice you missed (or maybe i missed it in my skimming) Was the tax break you get. The first 8-10 years you own your home 100% goes to the intrest and nothing goes into the principle of the loan. You can claim every penny that you pay of intrest right? At least this is what i've been told i don't actually know for a fact. Since i'm a newbie to home buying let me hear what you think. I have a household income of 80k, My credit score is currently 738. What kind of deal SHOULD i be able to get from the bank? I have no clue as to how everything works and i've been trying to read up on it but alot of it just sounds like jibberish.

First of all, protect that credit score with your life.

Secondly, you're right on 1/4 of that. Interest CAN BE deducted or written off if you get the right kind of loan. Most loans do not allow write off of interest. Also, you never make a 100% interest payment unless you're in an interest-only loan (Which should be avoided, and at your credit level, never even considered).. With most of my loans I look at spending 2/3rds of my monthly bill in interest. That starts to fall as the principle payments increase (Proportionally).

You make too much money for Fannie Mae, but your credit is on the money for an FHA. There are other Mae options like Freddie Mac, Sally Mae and what have you. I'm a mechanic, not an underwriter. You'll have to do that research.

Next thing you need is to save up in 2 accounts- your regular checking should have $3000, and you should have the balance of $11,000 in your savings / open a new credit union account. (Then balance out that amount in anyway you want.. doesn't matter). Also everyweek give your parents or someone trustworthy $100, and at the time of closing, have them give you that money back in the form of a gift. Then for the Mae type loans, you'll want to keep your credit union account quiet, and just use "the gift" to throw the balances.

You will offer more flexibility to get the best rates.
 
I'm not self employed.

Also, Micah, good luck with the rent-to-own option. I wish I could get into that. The nice thing is the possibility, the bad thing is that your choices of houses is almost non-existent. You have to take what's presented to you.

I, however, have that mid 600s credit rating, and I make a pretty penny. I was able to get the Fannie Mae. Were you given a specific reason why you couldn't get it ?

well we talked to a mortgage broker, she checked a few of her lenders while we were in the office. noone would do 100% financing, only thing we could get was a combo loan which was shitty. i havent looked into any fanny mae loans. when i asked specifically about the federal program for first time home buyers she said a mid 600 wasnt good enough to qualify. then she said that it didnt matter because we make too much money anyway, we only make like 60k. maybe she was bullshitting, or maybe its just dif guidelines for florida. i dunno.
we actually already found a rent to own house and its one of the better ones weve found. thats the only reason we even thought about it.

link to house - PanamaCityMLS.com
 
OH yeah... Florida real estate is fucked up. There are lots more plans, and lots more requirements for programs that the rest of the country find to be normal.

I would continue to do a search. Also, I thought a Combo loan was a refi thing.
 
ok, now let's throw this little wrench into the pot,

Don't think for a second that you actually own the property your on, the state that you live in has granted people the right to lease land from them. When you take ownership of the land you're givin a deed "A deed is a legal instrument used to grant a right" why else do you think there are eminent domain laws.

In the long run you are actually granted a lease to the land you think you own, at any point in time the government can decide to pull it out from under you, maybe you'll get fair market value but still you don't actually own more than a lease on the land while you're making payments on the property.
 
First of all, protect that credit score with your life.


You make too much money for Fannie Mae, but your credit is on the money for an FHA. There are other Mae options like Freddie Mac, Sally Mae and what have you. I'm a mechanic, not an underwriter. You'll have to do that research.

Next thing you need is to save up in 2 accounts- your regular checking should have $3000, and you should have the balance of $11,000 in your savings / open a new credit union account. (Then balance out that amount in anyway you want.. doesn't matter). Also everyweek give your parents or someone trustworthy $100, and at the time of closing, have them give you that money back in the form of a gift. Then for the Mae type loans, you'll want to keep your credit union account quiet, and just use "the gift" to throw the balances.

You will offer more flexibility to get the best rates.

Would i be better off buy the house before i get married? Because that would drop my house hold income to 45k? Also i already havea credit union account and have a great history with them, All my loans i've ever taken, auto and personal have been from them. I'm getting married in may of 08'.
 
YES. Talk to them about the loan in your name. You and your future wife can work out the details for title, deed or refinancing when you get married. I'm in your same boat, and our lawyer is drafting something up that states the house is split 50/50.

IF you can get away from her income, then you can get the Fannie Mae. Next, Florida has weird shit about closing with Fannie Mae (like a state fee of $500 or some shit, at the price you mentioned.)
 
about the combo loan.
noone would grant us a 100% finance because apparently a mid 600 isnt good enough. the only way to get financed for the houses we looked at was to do a combo.
basically lender #1 loans like 80-90% at a modest interest rate, a 2nd lender is brought in to cover the rest of the loan at a higher interest rate. mortgage broker said the 2nd lender usually charges ~15% for my credit i might be able to get it down to 13%.the first lender would have been the normal 6-8% whatever.

we have about 5k cash on hand. i was planning on keeping that cash for closing costs and move in costs instead of putting the money down.
we could technically sell off our stock and have about 25-30% to put down on a house, but we dont really wanna do that. so thats why we were looking at 100% financing.
the housing market here has been on the decline for the last few years. it got ridiculous and now prices have been falling everywhere. its leveled out some here lately and is expected to start rising again in the next year. so basically for our area most of the lenders have stopped doing 100% financing for the last few years.
 
The 80/20 loan (OHHH that combo loan) puts the 80% at or around Prime. The 20% loan is locked in at higher-than-prime for a limited time. After that, the interest rate SOARS to higher than a car payment type of interest.

That is usually after 8 months that that happens.
 
Oh, and avoid listing your stocks as an asset. If you must, list one market or one specific stock. Not everything. Keep your cards close. If they NEED more to get you approved or to improve your rate or terms, then go for it. Not until then.
 
Real brief one: Sony Mae ? oh jesus, I have no clue what this is. It "Recaptures" closing costs and yearly savings "at some point in the loan"
 
Our closing costs were less than what was stated (by 1k) in the original contract at closing...
 
Most people go WAY wrong here. There is a term out there.. called "Starter home". A starter home is just that. When you want to get into real estate, you get a starter home. Just like a starter deck of Magic: The Gathering. You can go out and buy a $200 deck and still get your ass kicked by a simple starter deck.

I think the only way we really differ is our political views :)

However I started by rummaging the boxes of commons. Wound up building a 5 dollar deck that put the hurt on a shop owner's mox-happy-kill deck. Got 'em to one point...

Autumn Willow and the GODDAMN Abyss... couldn't fix that.

/geek
 
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