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Message
re: First Time Buying a House
Posted on 1/20/16 at 1:35 pm to Displaced
Posted on 1/20/16 at 1:35 pm to Displaced
I recently purchased a home using FHA and my closing costs were less than I budgeted for. 2% of the cost of the house. Not sure which cost you mean. PMI sucks but at least it is currently tax deductible.
This post was edited on 1/20/16 at 1:38 pm
1
Posted on 1/20/16 at 1:35 pm to LloydChristmas
quote:
I think some of the rural development loans are offering some type of 100% financing options, but I am not certain.
Yes, that is correct, but the house has to be in a USDA targeted area and there are income and employment requirements.
Don't bother if you drive trucks for a living or your income is largely commission based. There's a chance you could slide through, but it's just not worth the headache.
Their site sucks, but here it is.
Posted on 1/20/16 at 1:37 pm to torrey225
quote:
I recently purchased a home using FHA and my closing costs were less than I budgeted for. Less than 3%
i guess it depends on the bank too.
we ended up going with NFCU conventional. we are only putting down 10% and dont have to pay pmi
Posted on 1/20/16 at 1:39 pm to ZBeaux10
How long do you plan to live in the house? You don't build much equity in your home the first few years you own it.
We sold our first house after 3 years to move out of state. Our down payment was only about 3% for an FHA loan.
Even after 3 years, we were only able to sell the house for about $2000 above what we paid. We only got about $800 back after paying realtor fees and the buyer's closing cost. It was even less if you factor in costs of requested repairs and other touch ups.
So my point is that I would avoid the zero down option if you don't plan to live there more than 5 years. You could have to pay out of pocket just to sell your home.
We sold our first house after 3 years to move out of state. Our down payment was only about 3% for an FHA loan.
Even after 3 years, we were only able to sell the house for about $2000 above what we paid. We only got about $800 back after paying realtor fees and the buyer's closing cost. It was even less if you factor in costs of requested repairs and other touch ups.
So my point is that I would avoid the zero down option if you don't plan to live there more than 5 years. You could have to pay out of pocket just to sell your home.
This post was edited on 1/20/16 at 1:42 pm
Posted on 1/20/16 at 1:40 pm to Displaced
quote:
i guess it depends on the bank too.
I pretty much shopped as many of the fees possible too. My closing attorney price matched.
Posted on 1/20/16 at 1:42 pm to ZBeaux10
quote:
Any advice would be appreciated.
save some money for a down payment
Posted on 1/20/16 at 1:44 pm to ZBeaux10
Couple months ago I put 15% down had seller pay all but $200 of closing costs and while I am paying PMI it'll go away I'm a few months due to paying 2 additional principal payments each month.
Posted on 1/20/16 at 1:44 pm to yellowfin
quote:
save some money for a down payment
I would suggest having around 10% of the total cost of the house ready before you buy. At least 3-5% for down payment and another 5% or so for issues. Lots of small cost associated to home ownership can add up over the first 2-3 months, especially if you are buying an older home.
This post was edited on 1/20/16 at 1:45 pm
Posted on 1/20/16 at 1:47 pm to PurpleandGold Motown
quote:
Yes, that is correct, but the house has to be in a USDA targeted area and there are income and employment requirements.
The USDA rural program is legit. And you don't have to live way out in the middle of nowhere to use it. For instance, you can live in a semi-rural suburb in a good school district on the outskirts of a city.
Posted on 1/20/16 at 1:47 pm to stevengtiger
quote:
Lots of small cost associated to home ownership can add up over the first 2-3 months, especially if you are buying an older home.
While it doesn't cover everything 100%, the home warranty really saved us in our last two homes.
Posted on 1/20/16 at 1:49 pm to H.M. Murdock
quote:
ETA: 20% Down, 6 month emergency fund, max 401k to employer match, max ira....until you can do this don't buy a house
this is a load of shite. if you have a good job put down the 3.5% and enjoy life. nothing worse then someone dumping 20% into a house and then is miserable because they have no money for fun and just sit in their house eating pb&j or ramen every night. you are going to want money remaining in your saving when the ac breaks or to actually be able to afford to buy shite for the house
you aren't paying your first house off anytime soon. buy something with good resale value and get used to paying a house note for the next 30 years. An extra $15,000 on a 30 year loan is not gonna matter
This post was edited on 1/20/16 at 1:52 pm
Posted on 1/20/16 at 1:50 pm to Bmath
quote:
The current trend is to ask for the seller to pay closing costs.
In a tough market area sure, but you would get laughed at here. The average home is selling in less than 21days, little to no concessions, and selling for more than list.
This post was edited on 1/20/16 at 1:52 pm
Posted on 1/20/16 at 2:04 pm to GetCocky11
quote:
The USDA rural program is legit. And you don't have to live way out in the middle of nowhere to use it. For instance, you can live in a semi-rural suburb in a good school district on the outskirts of a city.
pretty interesting.
Have to meet certain requirements, but the entire Wank is eligible.
Posted on 1/20/16 at 2:08 pm to ZBeaux10
It's almost always wise to put down 20%. I know that's not always possible for everyone, but maybe you can't afford the house if not. When you buy a house, it's a lot more responsibility on you, and if you can't build up enough savings to put a down payment on the house, how can you have enough rainy day fund for when you may lose a job, etc..
You can't pay rent, you get evicted. You can't pay a house note, you may have to file for bankruptcy. Big difference.
You can't pay rent, you get evicted. You can't pay a house note, you may have to file for bankruptcy. Big difference.
Posted on 1/20/16 at 2:09 pm to Restomod
quote:
In a tough market area sure
Which is most of the country.
Posted on 1/20/16 at 2:09 pm to ZBeaux10
You can get a conventional loan with 5% down. I'd save up until you have this and go with the conventional loan over FHA or RD. Your interest rate will be lower than a 0% down RD loan and PMI goes away once you reach 22% equity (not the case for most FHA loans. Much better loan if you can do it.
This post was edited on 1/20/16 at 2:35 pm
Posted on 1/20/16 at 2:11 pm to H.M. Murdock
quote:
ETA: 20% Down, 6 month emergency fund, max 401k to employer match, max ira....until you can do this don't buy a house.
goddamn I love this place
Posted on 1/20/16 at 2:13 pm to KG6
quote:
if you can't build up enough savings to put a down payment on the house, how can you have enough rainy day fund for when you may lose a job, etc..
easy. by not putting down 20%
Posted on 1/20/16 at 2:14 pm to KG6
and with interest rates so low right now, it's not horrible if you don't put the full 20% down
you will have to pay PMI, but if you plan on remodeling or anything like that, you can get the house reappraised and possibly/hopefully get the PMI removed in a few years
that is what we did at least
put 3.5% down @ 4.5% IR, remodel house, refinance @ 3.25% IR and reappraise to remove PMI
you will have to pay PMI, but if you plan on remodeling or anything like that, you can get the house reappraised and possibly/hopefully get the PMI removed in a few years
that is what we did at least
put 3.5% down @ 4.5% IR, remodel house, refinance @ 3.25% IR and reappraise to remove PMI
This post was edited on 1/20/16 at 2:15 pm
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