Well, we hit some snags on trying to buy the 5 acres

Funbowhunter · #1 09/18/13, 12:42 PM

We were trying to go USDA guaranteed loan, which was a cheaper way than FHA. Not only does the loan insurance now go for the life of the loan, there is an initial cost of several thousand dollars tacked on top of the loan. This added $140 to the monthly cost of the loan, not only that the down payment is much higher so out goes the plans for a decent truck for a while, and out goes the plan to get found wood for building a chicken coop. But if I can find a neighbor that will rent me theirs every once in a while, that would satisfy that need.
Any other suggestions? Hopefully this time the loan will happen. Nothing's guaranteed until the last doc is signed!

Molly Mckee · #2 09/18/13, 02:12 PM

You can rent a truck from a car rental business. I would not count on moving in to a neighborhood and borrowing things, especially a truck. We don't let anyone we do not know very, very well borrow things. It is our experience that they come back screwed up or broken, or not at all. If you are not closely related, or another long time area farmer that we know well and have something to lend, don't ask. Actually, most farmers won't ask, they will tell you their problem and let you offer if it works for you.

Brighton · #3 09/18/13, 02:26 PM

Your a licensed realtor and you are having problems with a USDA loan??

And you don't borrow things from new neighbors, get down to a junk yard and buy yourself an old truck to use to haul wood and such.

FarmboyBill · #4 09/18/13, 10:38 PM

I didn't know FHA made loans on that small an acreage. They don't here in Okla. Your lucky I guess.

Same sentiments as others as to borrowing things. Ive been used by users and abused. Not again.

Funbowhunter · #5 09/18/13, 11:34 PM

Well, it looked like the USDA was going to fund my wife, who has great credit, the snag was my house in Wisconsin. I am having to sell it short, as I had it for sale for over a year making payments and keeping the utilities on to protect it from freeze damage. I lost my job last year and it was either keep paying for a home that was not selling or buy food. The funny thing is this, If the home would have also been here in Minnesota, she could have gotten the lone, the snag is, Wisconsin is a community property state, so, even though I owned it prior to our marriage, she is hurt by it.
I put this out to let others know what can happen, I also want them to know the high price of an FHA loan due to the mortgage insurance.
Btw, I said rent, not borrow.

Molly Mckee · #6 09/19/13, 12:43 AM

I know you said rent. We do not rent anything. Period. It just gives someone more reason to abuse our property.

Steve in PA · #7 09/19/13, 08:51 PM

Mortgage insurance goes away after you own 20% of the value of your home. So, you can either pay the loan down to 80% OR if the value of your home goes up that you loan is only 80% of the new appraised value you can drop mortgage insurance aka PMI. Most people neglect the second option costing them thousands in unneeded PMI payments.

Whomever told you that you have to carry the insurance for the life of the FHA loan was incorrect.

Funbowhunter · #8 09/20/13, 12:46 AM

Steve, mortgage insurance for FHA is now for the extent of the loan. This happened last February I think. It is terribly expensive, in fact a 4.25 interest loan actually is over 6% APR.

Steve in PA · #9 09/21/13, 07:21 AM

Quote:

Originally Posted by Funbowhunter

Steve, mortgage insurance for FHA is now for the extent of the loan. This happened last February I think. It is terribly expensive, in fact a 4.25 interest loan actually is over 6% APR.

I did not know that. If FHA is all you can get and you're sure you can afford it, you could purchase with the FHA and when your finances get squared away refinance into a conventional.

Personally I hate seeing anyone go up to the bloody edge with financing. I think that's why the inevitable crash of 2008 happened.

wharton · #10 09/21/13, 08:41 AM

There are very few individuals I would loan a vehicle to, based on long term relationships, and a deep knowledge of their character. As for renting, it won't ever happen for a simple reason, IF anything were to go wrong during the time the vehicle was being used, the owner of the rented vehicle would have a real serious problem on their hands. I seriously double that many of us have a personal, farm or business vehicle insurance policy that allows for renting vehicles for a profit.

As a college kid I worked for a busy restaurant that had 2-5 delivery drivers going every night. They warned you that you needed to contact your insurance and notify them that you were using your personal vehicle for profit. Nobody every did, and several times things got ugly when insurers refused to cover damage in accidents.