Noway for me to buy a home

[gravelgirl66]

I have come to the conclusion, that atleast in the next 10 years, I cant buy a home... I just dont see how its possible... My Bk 7 will be two years out in July, and I have kicked A** on restoring my credit. I want a manufactured (2003) home on 3 acres..It is so nice..but there is no way I can come up with 5K for a down payment... I know I can get the seller to pay closing... but honestly even coming up with 2K is a killer. I am single mom... I have some money in savings but nowhere near that...

I have no one to loan me the money... Everything i look at they want atleast 5% down... I really wanna cry bad... I have read and read on the boards.. I have no 401K to borrow from ... and I just see no way..

thanks for listening to me...

[breathing_easier]

Is this your first home? If so, have you checked out the $0-down programs for first-time homebuyers?

I know $2k or $5k can look like a huge amount when you think of it in one lump sum. Have you tried breaking it down into smaller goals - say, commit to saving an extra $50 per month to start with. Check out www.daveramsey.com for inspiration. I don't agree with all of his ideas, but he does have some very good ones. Give eBay a try...it's amazing what people will buy!

Don't get discouraged. Just keep thinking "baby steps" and keep your eye on your goal. You'll have that home in no time!

[I hate EXP]

Check out www.naca.com too

They have no down payment , credit score doesnt matter , and they give you at least 1 point below the current interest rate. You will have to do a little volenteer work , but only 5 times a year

[ybrew]

Check out www.naca.com too

They have no down payment , credit score doesnt matter , and they give you at least 1 point below the current interest rate. You will have to do a little volenteer work , but only 5 times a year

I agree, check out naca.

But my experience has been they're closer to 1/2 point below best current rates. Still great though.

Myfico lists best rates today at 5.89%. Naca is at 5.5% today. But then factor in no closing costs, 100% financing at that rate - it's a GREAT deal.

[brattylatina]

Because sellers are so desperate to get rid of their homes, I was able to get my home with the sellers paying 3% towards closing closts (about 13k) and all I came up with to close was $1,000. I also had a dismissed Chap 13 so if I can do it, you can as well. Don't give up. There are lenders out there that are willing to work with you.

[gravelgirl66]

even with them... I just dont see:

1 year property taxes paid in advance

1 year homeowners insurance paid in advance

1 year interest

plus two months reserves...

this still adds to up atleast 3K. So even them... it wont help. I thought I would find something where they could roll that stuff into the loan. I just wanted to make one payment or whatever...

Even the 100% isnt really 100% they all say that, but then its "what are you using for a downpayment" - then appraisal fees, and this fee and that fee. Just to tell you, um well yes we can do that. but you need a down payment.

I mean honestly I look at all the homes around where I live, and I think honestly how in the world did they purchase a home. (not b/c I think I am better or anything) but I have a good job, good income... and cant get nothing...

Everyone I know, there family gave them the money. Well I dont have that. How do you do it, when you have no one but yourself?

[ybrew]

even with them... I just dont see:

1 year property taxes paid in advance

1 year homeowners insurance paid in advance

1 year interest

plus two months reserves...

this still adds to up atleast 3K. So even them... it wont help. I thought I would find something where they could roll that stuff into the loan. I just wanted to make one payment or whatever...

Even the 100% isnt really 100% they all say that, but then its "what are you using for a downpayment" - then appraisal fees, and this fee and that fee. Just to tell you, um well yes we can do that. but you need a down payment.

I mean honestly I look at all the homes around where I live, and I think honestly how in the world did they purchase a home. (not b/c I think I am better or anything) but I have a good job, good income... and cant get nothing...

Everyone I know, there family gave them the money. Well I dont have that. How do you do it, when you have no one but yourself?

Read the sticky "Yes You Can Get FREE Money To Buy A Home With Grant Programs"

NACA is VERY little down - no fees or anything else - just insurance & a usually 2 months' taxes.

consider using a discount broker - they give you money at closing that can be used towards taxes/insurance.

It sounds like you're not married. Do you have children? If not, how many jobs do you currently have? Hint - if the answer is just one, it's probably not enough!

[VonAngel (aka EarthAngel)]

Oh, hun...your situation is not the worst and most definitely not hopeless. Let me tell you, I just bought my first home w/ about $1,300 out of pocket (that includes the inspection cost). Everything else...paid for!! The seller paid $3,000 of the closing costs and the rest I paid. (As a PP stated, eager sellers are all around. Many are more than willing to pay the closing costs.) I even got an interest rate of 5.625%. As a FTHB, I was fortunate to find the program I did. You can do the same. Start researching and saving what $ you can. I also found this link. Maybe it could be of some use to you since you're in FL & would be a FTHB: http://www.floridahousing.org/Home/HomebuyersRenters/FTHB/DefaultFTHB.htm As ybrew mentioned, check out downpayment assistance programs.

Also, the amount you have to prepay for property taxes and interest depends on what month you purchase your home. The earlier in the year you purchase, the more that comes out of your pocket. (Lucky me, I purchased on Nov. 30.) Remember, this would be your 1st home. If you're young and not completely settled, then let this be a starter home for you. You can always upgrade as your financial circumstances improve.

[ba0501]

It can be done gravelgirl66. I just purchased a house in Oct 06. I went thru a mortgage broker who found me a good deal. It was a FHA loan. The only money that came out of my pocket was the earnest money deposit and the appraisal fee but both were credited back to me at closing. The loan did require a 3% down payment but I got somekind of gov't grant for that. The seller paid all closing costs, which including a year up front of property taxes and insurance. I might have had $800 to $1000 in reserves(no 401k or anything). My loan ended up being a 30-year fixed at 6.375%. My mid-score was 680. I would suggest that you find a good, honest broker that can find you what your looking for. It can be done! Good luck and don't give up!

[Ahntara]

"...I cant buy a home...just don't see how its possible..."

THAT's the real problem. If you can see if you can believe it. If you can believe it, you can do it.

"...I have a good job, good income..."

Yet, you can't come up with $5k or even $3k? What if something happens to you? What if you can't work? How will you support yourself and your child(ren)? Most financial experts recommend having at least 6 months of living expenses saved up 'just in case'.

"...honestly how in the world did they purchase a home..."

Most people work hard, save a long time, borrow from Peter to pay Paul, then mortgage themselves up to their eyeballs. Haven't you seen that funny commercial..."somebody help me" from that suburban Dad with the smile plastered on his face? You can certainly do the same. But first you need to know that you can and take the appropriate steps that will help you reach your goal. And I don't mean contacting a certain mortgage broker. Purchasing a home is the way to wealth for most Americans. It's too important to leave to those who can afford it. I wish you luck!

[melisadawn]

I am not married (although I live with fiance) but I claim my children and head of household and get a good income tax check. We used this to buy our first home. You get Earned income credit if you make under so much.

[firstsource]

Very good comments. Believing that you can do it, visualizing you and your family in a home, these are the most important parts of getting anything, especially a home. Many times I have asked that a client cut out pictures of a type of home that they want to live in. Then I ask them to put these pictures in 5 places: Fridge door, bathroom mirror, nightstand, car, your mothers refrigerator door. Most of the time they end up owning a home very much like that picture. This system works for a lot of things, but the most fun is getting a car or home.

Start packing your stuff up. That also works. WHY? It means that you really believe that you are going to move into your home-otherwise why would you pack things up.

This is goofy stuff to post here, and I will probably erase most of it tomorrow, but wanted you to see it. I know how long you have been trying to get into a home...

Charles

[jq26]

This is goofy stuff to post here, and I will probably erase most of it tomorrow, but wanted you to see it. I know how long you have been trying to get into a home...

Charles

IMO, you shouldn't erase it! It has as much value to some readers as mortgage and credit tips. They may become creditworthy but still lack the fortitude to get to their goal. This is a great way to stay focused!

[sr28b]

I have come to the conclusion, that atleast in the next 10 years, I cant buy a home... I just dont see how its possible... My Bk 7 will be two years out in July, and I have kicked A** on restoring my credit. I want a manufactured (2003) home on 3 acres..It is so nice..but there is no way I can come up with 5K for a down payment... I know I can get the seller to pay closing... but honestly even coming up with 2K is a killer. I am single mom... I have some money in savings but nowhere near that...

I have no one to loan me the money... Everything i look at they want atleast 5% down... I really wanna cry bad... I have read and read on the boards.. I have no 401K to borrow from ... and I just see no way..

thanks for listening to me...

Nah, if the manufactured home is permanently affixed and common for the area and your ratios are 29/41 then you only have to wait til July of this year. That's five short months away.

Charles can do that FHA withe DP assistance you'll need $100 for a deposit and $300 for an appraisal and if you write your contract properly then you can get that $400 back at closing.

[elyse449]

even with them... I just dont see:

1 year property taxes paid in advance

1 year homeowners insurance paid in advance

1 year interest

plus two months reserves...

this still adds to up atleast 3K. So even them... it wont help. I thought I would find something where they could roll that stuff into the loan. I just wanted to make one payment or whatever...

Even the 100% isnt really 100% they all say that, but then its "what are you using for a downpayment" - then appraisal fees, and this fee and that fee. Just to tell you, um well yes we can do that. but you need a down payment.

I mean honestly I look at all the homes around where I live, and I think honestly how in the world did they purchase a home. (not b/c I think I am better or anything) but I have a good job, good income... and cant get nothing...

Everyone I know, there family gave them the money. Well I dont have that. How do you do it, when you have no one but yourself?

No offense, but this sounds wierd. One year prepaid INTEREST????

When you purchase a home, the payment of it's property taxes, insurance and the like is YOUR responsibility, but I guess perhaps the bank wants to protect their interests. Have you tried seeing how much this would likely cost you to do??

ALSO, most definitely your mortgage can include your property taxes and insurance so whoever is telling you it can't is wrong. You may be working with a bad lender, or whoever is attempting to sell is off on their demands. The one thing you should watch out for is this--NEVER and I mean NEVER let 'em know how much you want it. You always have OTHER options and remember-it's just a HOUSE, it's the precious folks inside that make it a home and your home will be WHEREVER those folks are. I understand about dreams, but any dream worth having is worth working for. Have you tried the "Bank of America" ACORN program?? Well, I strongly urge you to consider ALL of your options with regard to housing, financing...the whole nine yards.

Keep your chin up. There's a TON of programs out there, all you need to do is be patient and find the one that will work best for you. In the mean time, try to save a bit of cash and let it grow interest. Buy a CD if you can. These are all stepping stones and YES YOU CAN DO IT but you must believe it.

Elyse

[amortgageman]

I have to lean towards the FHA route (or possibly USDA, if the parameters will work for you). FHA will finance a mortgage on manufactured homes on a permanent foundation. Many other lenders will no longer touch them.

Now, since so many have given you hope, and you have the pictures cut out and placed everywhere, it's time to get to the nitty gritty and make a plan. You are only five months away from making this happen.

Melisadawn worked and made it happen, and so many others have made it happen, there is no reason why we cannot make it happen for you. Tax refund checks make an excellent source of down payment for a home.

Of course, there are other issues we need to cover first.

Since your bankruptcy, what have you done to reestablish credit? Have you had any negative information placed on your credit report since the bankruptcy was discharged (collections, chargeoffs, late payments, etc.)? I am not sure where you are with your credit journey,and as long as all the negatives are related to your bankruptcy, they can be proven to the underwriters through your discharge papers. The most important issue is that you have a clean slate since your bankruptcy.

Your job history and income will also play an important role in your mortgage qualification. Basically, you will need two years steady employment with the same company or at least in the same field of work. The same would go, if you have part time income. Are you able to meet this criteria?

The lender will need to income qualify your purchase, and you will need to find out how much you can afford. FHA will allow 29% of your gross income for housing expense, and 41% total debt. You must fall within these parameters. Now we get to spill out that information. So, what is your gross income from your job? Are you salary, hourly, commission, bonuses, any overtime, is the overtime regular? Will you have another borower on the loan? If so, we will need those details too.

What other credit obligations do you have?

This is the basic starting point for qualifying for any mortgage. You must stay within reason, because to just pick a home without any consideration of affordability can find yoursellf in financial difficulty, and possible loss of sanity in trying to pay the bills, and you do not need to burden yourself with that kind of stress.