Is there a loan that can do this for me?

0.10 Dollars($)

First time home buyer

Find a home that is selling for 20k less then value.
Get loan for home that is full value.
Use the extra 20K to pay debt and wrap it into the mortgage.

Thanks.

livinginnky · Posted: Mon Oct 08, 2007 7:01 pm Post subject:

I don't know of any lender that would do it. However if you buy it 20k less than the value and you have good enough credit to qualify you could do a cash out refinance after you purchase it. You would have to qualify for a 100% loan up front for any of it to work.

0.10 Dollars($)

I might as well file for bankruptcy

sara · Posted: Mon Oct 08, 2007 10:53 pm Post subject: RE: first time buyer fha loan

Hi Guest,

Welcome to the forums.

First of all, let me ask you how much of a down payment you're looking to put in. Then you need to consult a real estate agent who can you find the home you're looking for. Next, you need to start shopping for the loan and while you do this, take in to account all possible offers you may qualify for and the corresponding rates and fees. This will help you compare and then take the decision on the right loan offer.

If you're a first time buyer, consider going for an FHA loan as it requires a lower down payment (as low as 3-5%) and you need not even bother much about your credit score as these loans aren't driven by the scores. All you need to have is a debt to income ratio of 41% and a steady source of income to help you qualify for the FHA loan.

Take Care

jenkin7 · Joined: 04 Jun 2007 Posts: 939 140.80 Dollars($)

Hello Guest,

You have to search for lenders who might help you to get this kind of loan.

Are you planning to file a bankruptcy because of your existing debts? In that case, qualifying for a mortgage becomes difficult and your application is often turned down.

0.10 Dollars($)

I was looking for 0% down, Im running about a 630 Credit Score. Same can be said for my girlfriend who will be on the loan with me!

livinginnky · Posted: Tue Oct 09, 2007 4:41 pm Post subject:

With that score it might be possible then. It depends on what the credit report has in it. A lot of additional questions need to be addressed. 630 is not a good or a bad score it is right in the middle.

You would need to purchase the home first. Then after a set time probably 12 months you could then refinance for the true value and get the additional equity as cash to pay off your debts.

It can be confusing trying to figure out how the lender determines a "loan to value" and a purchase is completely different than a refinance when you talk about "loan to value". In a purchase it doesn't matter what a home is worth if you don't put money down it is considered 100% loan to value. Now with the same house in a refinance if it is worth 100k and the loan is for 80k then it is an 80% loan to value. Hope this helps.

Let me know if you have any additional questions.

Samantha · Posted: Wed Oct 10, 2007 4:48 am Post subject: RE: first time buyer loan offer

Hi Guest,

Welcome to the forum.

I agree with Eric here. A score of 630 is neither too bad nor too good. And, with this score, you can apply for mortgages to purchase a home. There are several lenders who allow for special offers such as discount or buy-down on the interest rate. So, you may get to avail such offers.

However, as Eric mentioned, I too feel there won't be lenders to agree with your offer of purchasing the house with a loan, a part of which you may use to pay off other debts.

The best thing would be to refinance the loan after 1 year as the lenders generally prefer one to have a payment history of 1 year before they can allow for a refinance. They need to check whether you is a creditworthy borrower and how well you have managed your mortgage for a year.

Hope this helps...

God bless you.

Samantha

radavis76 · Joined: 10 Oct 2007 Posts: 2 2.21 Dollars($)

Hello Guest,

Not to beat a dead horse, but Eric and Samantha are steering you in the right direction. The only thing that I might add is that there are some lenders they may consider letting you refi after just 6 months.

If you are really interested in buying a house, you should try to avoid filing for bankruptcy if possible as this will make it more difficult to get a loan. But if you can hold your debtors off for a year then you should find plenty of buying opportunities where houses are being sold for below the current market value. That is because right now it is a buyer's market in most areas and it's more than likely going to get a little worse before it gets better.

In fact, my friends and I put together a site to help buyers such as yourself. It's new, but if given a little time it will help you take advantage of the buying opportunities in your area. Feel free to check it out:

"www.YU-FY.com."

Hope it helps.

[Link deactivated as per forum rules. Thanks.]

Caron · Posted: Thu Oct 11, 2007 4:16 am Post subject: RE: welcome message

Hi Radavis,

Welcome to our forums.

Staying away from the bankruptcy would be a good idea and if the debts are all unsecured, then the person can go for a debt consolidation program also. So, refinance wouldn't be necessary then if he goes for debt consolidation. And then, as you say, the person can look for better buying opportunities.

Good luck

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