Home Financing???

Discussion in 'Homesteading Questions' started by jillianjiggs, Aug 26, 2004.

  1. jillianjiggs

    jillianjiggs Well-Known Member

    Messages:
    550
    Joined:
    May 13, 2003
    We're looking for a home loan. We've got okay credit (average for our age) and we're on a tight TIGHT budget for the time being. We're looking to get a fixer-upper or a modular home in the Sacramento area. Any ideas?
     
  2. diane greene

    diane greene Well-Known Member

    Messages:
    297
    Joined:
    May 12, 2002
    Start at your local bank or credit union. Many states offer special mortgage programs for first time buyers or low income buyers with steady employement and decent credit history.
     

  3. I don't know anything about the real estate market in Sacramento. But if you've decent credit and practically no money, you might want to look into an FHA loan. They will help you get a loan with as little as 3% down. They also have a loan available which includes additional cash for certain types of renovations. Look around on the FHA website for information on these loans.

    -Jack_Cville


     
  4. AngieM2

    AngieM2 Big Front Porch advocate Supporter

    Messages:
    44,836
    Joined:
    May 10, 2002
    There is suck things as downpayment gift organizations. Many mortgage companies know of them, or the real estate people wanting to make a sell should also know about them.

    here is one
    http://www.mortgagepages.com/pic/

    it is just a name I recognize. There are several of them.

    Apparently it is as if you offer the seller full asked price of the land/house. they gift up to about 5% back to the organization giving you the downpayment, organization keeps 1 or 2% for handling it, and you get a gift of about 3% to put as the downpayment. This in effect is getting you a full price mortgage for just the payments. (Explained to me by daughter who is a closer for a mortgage company. Also, she said stay away from Ameriquest. But AmeriDream is okay).

    AngieM2
     
  5. jillianjiggs

    jillianjiggs Well-Known Member

    Messages:
    550
    Joined:
    May 13, 2003
    We were qualified for this -
    Amount Interest Rate Points APR Monthly Payment Loan Product
    $89,000 7.75% 2.5% 7.75% $638 30 year fixed

    Through Americas MoneyLine...

    We haven't yet accepted the offer and we're still looking around. Problem is, in Sacramento that MIGHT get you a repo, or a rundown town home, a shack (no joke - there are some listed through MLS), or a mobile home. We can't afford the extra $300-400 a month for space rent or HA fees.

    But, for the same cost a month as an apartment, I'm at least going to TRY to buy something that is OURS.
     
  6. AngieM2

    AngieM2 Big Front Porch advocate Supporter

    Messages:
    44,836
    Joined:
    May 10, 2002
    see if you can move out of Sacramento (I was born at Travis AFB), and maybe drive about 30 minutes or 45 minutes to jobs/school to get a better priced/built home?

    Just a thought.

    I know I'm 16/18 miles from work and the city is coming out to get us. Looking to move further out.;. also out with an interstate to get the miles done quickly might help.

    Good luck in your search.

    Angie
     
  7. RAC

    RAC Guest

    Well, as long as you don't mind jacking up your tax assessments too by paying full price.

    You might want to look into lease-options as well. Gives you time to build your credit, as well as applying some of what you pay to a price on a house you negotiate now.
     
  8. homebirtha

    homebirtha Well-Known Member

    Messages:
    1,259
    Joined:
    Feb 19, 2004
    Location:
    Maryland
    How much are you putting down? Current rates are around 6 to 6.5% with NO points for the average borrower with 5-10% down.

    We have average credit, a little below average probably, and our mortgage was less than a point above the going rate at the time. That was on an FHA with very little down, 3% maybe?? We're looking again now, but have some more money to put down, and we're getting rates right around the average.

    So you might want to shop around a little. Have you thought about an ARM? Or some kind of combo? You can always refinance in a few years.