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I will be buying my parents' home as they now want to sell and travel. They will be selling it at $75K and the house is valued at $245K. I would like to get a mortgage of $125-145K so that I can do the repair work. What are the downsides of doing this? And is there any penalty for this type of sale? and if you need more details..my fico score is 600 and i'm a first time buyer.

jenkin7 · Posted: Sat Oct 13, 2007 5:07 am Post subject:

Hello Lee,

I think 203k Home Rehab Loan will perfectly suit you.

This is an FHA insured loan with which you can buy a home, repair it as well as include the allowable closing costs under it. The amount of mortgage you can get depends on the estimated value of your home after the necessary repairs.

You have to make a down payment of 3% of the home acquisition and repair costs. But to qualify for this, the home has to be at least a year old and the total value of the property has to come under the FHA mortgage limit for that particular area.

ckalvesmaki · Posted: Sat Oct 13, 2007 10:58 am Post subject:

Lee there are some options that can be discussed.......however you need to speak with a good broker.....there is no need to look at a FHA 203k loan......it's not needed given your scenario........a Gift of equity is a much easier transaction......

livinginnky · Posted: Sun Oct 14, 2007 2:17 pm Post subject:

Yes Cedric is correct. Your parents can gift you as much equity as they want. It will still depend mostly on what you yourself qualify for in a mortgage.

smaildaytoday · Joined: 15 Oct 2007 Posts: 52 0.00 Dollars($)

I thought u already owed a home....If u own a home already then u are not a first time home buyer. And if you are purchasing a home then u should consider getting a rehab loan...that way u can renovate the home....u should be working with a loan officer in your area.because guideline and underwiting on these loans are different depending on the type of property..and with a 600 credit score programs and 100% financing my be hard.

Guest

No, it's for the first time that i'm buying as i am currently staying in rented property. but how does gift of equity work?

Posted: Mon Oct 15, 2007 11:01 am Post subject:

Lee,

Only a family member can gift equity to you. Your lender will take care of it. Basically your parents will gift the available equity to you at closing. In this situation you get to decide what to do with the money.

This is the only time I know of when a borrower can get any cash at closing on a purchase.

adonis · Posted: Tue Oct 16, 2007 5:29 am Post subject:

Welcome Lee,

You might feel like checking earlier discussions on Gift of Equity at http://www.mortgagefit.com/firsttimebuyer/loan-repairhome.html and
http://www.mortgagefit.com/know-how/about6495.html

Guest

I am purchasing a $200K home in Colorado, and looking for a nice mortgage company. Our credit is pretty good ~ 720. Should I go with a FHA or are there any better options for me. A response is appreciated .thanks, Victor

jenkin7 · Posted: Tue Nov 06, 2007 3:41 am Post subject:

Hello Victor,

With a 720 credit score you can always try with FHA for a prime rate.

There are many FHA approved lenders in this community, you may talk to them.

gmakerley1 · Posted: Fri Nov 09, 2007 7:49 am Post subject:

in reply to you, Victor...with a credit score as you have, you are typically going to qualify for just about any mortgage you would seek, depending (of course) on your income level. you did not mention how much cash you have for down payment, but that concerns pricing of the loan more than approval of it.

you would like a "nice mortgage company." i work for first horizon home loans, which really is a "nice mortgage company." not only that, but i am a nice loan officer. i am hesitant to advertise my services here, but since you already asked the question, please feel free to contact me. although based in connecticut, i have the ability to work with borrowers in all states except hawaii, alaska and texas.

toll-free, it is 877-675-9363, and my full name is george akerley

Guest

thanks guys.
George - unfortunately looks like i have been moved to plano, texas instead. am in the market for a home there, in fact think we have locked in on one. need someone with good experience. do u know anyone here. i have all my accounts in colorado now so would need to move everything here. thanks, victor

shane · Posted: Mon Jan 07, 2008 3:37 am Post subject:

Victor, there can find lenders in Texas by going to the lenders section (http://www.mortgagefit.com/unitedstates/) and looking up lenders who are able to do loans in Texas, and also lenders who are based in Texas. With a 720 score I really don't think there would be a need for FHA, but you should check out both FHA & conventional financing to compare... so you know why one would be better than the other.

ckalvesmaki · Posted: Mon Jan 07, 2008 6:10 am Post subject:

Welcome to TX Victor.....

What part of Plano? There are a few things you need to be aware of in TX.....first....you don't have personal income tax but......your property taxes will be high......for the sake of arguement use 3% of the assesed value.....(should be lower)...Also not mortgage related.....but if you are leasing a car....make sure you get with the lien holder.......and have them send you an affadavit of personal use......or you will get taxed on it as well....Anyway welcome to TX

stephenie1 · Posted: Mon Jan 07, 2008 11:54 am Post subject: Welcome to Texas!

Hi Victor,
I am here in the Plano area. You have been given good advice on taxes here. Some areas are less than others, it depends on the school district. Some areas are as low as 2.6 to 2.7%. You will want to include that amount in your mortage payment. Also, keep in mind your home owners insurance. As for types of loans, you will want at least 3 options. If you want to put no money down, there are programs available to help. Do not forget mortgage insurance. Sometimes you can get it lender paid. If you go FHA, you will have mortgage insurance. Glad to have you in Texas!

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