House buying, and learning

Discussion in 'Countryside Families' started by AngieM2, Nov 9, 2006.

  1. AngieM2

    AngieM2 Big Front Porch advocate

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    I've been looking at lower priced houses in my area. Don't like the new brick subdivision ones, no character, no yard and cost too much.

    I can get the Ameridream downpayment assistance, or Bond money downpayment assistance last time I looked, but only with an FHA able house, not conventional.....

    Well, all the really neat older houses, will not FHA according to the mortgage people I talk with, or the main RE lady I talk with.....but NO ONE can give me specifics, a check list, etc.

    So, since my older daughter just happens to be a closing specialist (does all that paperwork prep) for a different mortgage company, I asked her about FHA and rthe requirements. I now have 1/4 inch of paper to read and weed thru to figure it out. But, I plan to know my stuff, and maybe then my favorite old house may still be for sale. (well on back porch, attic that reminds me of little women, porch around 2.5 sides) and a beautiful front yard and a big enough back yard.

    Now to learn how to play their game.... and bend/use their own rules.

    Angie

    here's the first form I've found:
    http://www.freddiemac.com/sell/forms/pdf/70.pdf
     
  2. sancraft

    sancraft Well-Known Member

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    Angie, my first house was FHA. You saw it, definately not new. There must be a way.
     

  3. AngieM2

    AngieM2 Big Front Porch advocate

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    Oh, I'll learn the rules, have a notebook with yellow highlights, and 3 credit report printouts, and I'll KNOW>...!

    I know it can be done, I just don't know the rules well enough yet...

    Angie
     
  4. AngieM2

    AngieM2 Big Front Porch advocate

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    Now I've discovered Streamline 203K FHA information.

    Did you know that you could get up to $35,000 to improve a house rolled into a FHA loan? I didn't... just found the HUD letter from June of 2005....

    For things like lead base paint stabilization.

    and "to insure a mortgage that covers both repairs costs and the refinance of an existing mortgage" that might help some here that need house repairs.

    Angie

    here's the link: page two has a whole lot of what this can apply to
    http://www.hudclips.org/sub_nonhud/cgi/nph-brs.cgi?d=MLET&s1=05-$[no]&op1=AND&SECT1=TXTHLB&SECT5=MLET&u=./hudclips.cgi&p=1&r=1&f=G
     
  5. mayfair

    mayfair a yard full of chickens

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    We bought our first house FHA and the reason the realtor said so few sellers do it is the hassle. The seller is required to make certain repairs up to FHA standards. Our particular seller had to have a special "FHA compliant" vapor barrier put in, etc.
     
  6. AngieM2

    AngieM2 Big Front Porch advocate

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    Mayfair,
    the thing is with this "streamline 203k" the buyer can get that financed into a house, new, refinance, etc. I just printed off about 150 pages of info today, including the inspection paperwork for all types of houses, and the vapor barior is not necessary according to the paperwork...

    So I'm going to figure it out...And then with credit reports, and tax reports and all taht stuff and highlighted paperwork - I might get a house I have my eye on.

    Heck - I'll even do the paperwork I can for them.

    Angie
     
  7. mayfair

    mayfair a yard full of chickens

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    Good luck, Angie- it sounds like a great way to go. The rules sound a lot better than they used to be. There really shouldn't be any reason for a seller to not do FHA if improvements can be put into the loan. Doing all that homework should be a big plus for getting into the house you want.
     
  8. prairiegirl

    prairiegirl Well-Known Member Supporter

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    Angie, best of luck. It will take some time to sort through all the paperwork, but in the end the reward will be worth it.

    We sold a 100+ yr. old home about 10 yrs. ago. When we listed the home we requested that no FHA offers as we knew it still needed more work. Sure enough, we got an FHA offer that was pretty close to what we wanted. We agreed to accept with the condition that we weren't doing any of the work or providing any of the finances to bring the house to FHA standards. They buyers wanted this house so they got the extra money somewhere to do the work. Some of the requirements were a bit silly. The garage needed to be painted. There were some of the old insulators on the side of the house from the old electrical lines. The electric had been updated years ago, and the insulators were left in place for the historical effect. They had to come down even though it was obvious no electric lines went to them.

    I think you are smart to learn all you can.

    prairiegirl
     
  9. KindredSpirit

    KindredSpirit Well-Known Member

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    Angie, both of the houses DH and I sold went FHA. The first one was built in 1892 and the second one was 1956. Don't let an agent tell you that no older homes go FHA. One thing about FHA, though, is that they always require something. Our first house (1892 house) they required we put on guttering, a rail going down to the basement, and repaint the shed out back. Not any real biggies, other than the guttering (2 story!!). The second house, they required we build the soil up around the foundation better for runoff. That was about it. They are sticklers about having all of the outlets be grounded, which is a good idea anyway. Generally it can be negotiated with the seller on who pays for what. The house built in 1892 still had knob and tube wiring, but it was in excellent shape, so FHA passed it! Good luck and happy house hunting!
     
  10. AngieM2

    AngieM2 Big Front Porch advocate

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    Thanks folks for the encouragement.

    I know this house could use a good inspection of things like electric. And I have a few things I'd like to do to it, but being told you cannot get a loan that incorporates that..... well, we will see - and I just 20 years at a compnany that gave the red tape of government lessons,,,,, so I can handle paperwork and I was a buyer for 5 years, so I know how to talk to companies...

    We will see - if not this house - there will be others for this to apply to.
    But maybe this one,....

    Angie
     
  11. KindredSpirit

    KindredSpirit Well-Known Member

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    Angie, I would also recommend having your own independent inspector check out the house. It usually costs a few hundred dollars but is the best money you could spend. FHA's inspector's are pretty thorough, but like I said, they passed our knob and tube wiring. An independent inspector will normally take several hours to go over the house, and give you a detailed report. Then you will know, upfront, everything about the house from the ground up so you can make an informed decision. FHA inspectors are looking out for the welfare of the lender. They do require certain things, but I can think of things they overlook too. Just a suggestion.
     
  12. Beltane

    Beltane Enjoying Four Seasons

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    Hey Angie! Check with different mortgage folks. Our house was built between 1770 - 1780 with a barn that contained two rentable apartments in it. We pretty much had to shove it down FHA's throat because they didn't want first-time homebuyers to have a rental property. Where there is a will there is a way...hang in there. :)
     
  13. AngieM2

    AngieM2 Big Front Porch advocate

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    Beltane -
    I sent an e-mail asking if this place did the "Streamline 203K" type, if not - they are not the only place in town... and I'll take your advice. Just asking them first, cause I was approved for a larger mortgage for a "nicer" house earlier this year, but now will be less due to less weekly paycheck.

    BUT, all the houses I've looked at are not the new, just move in type... don't like them ...

    I'll keep on, and will take your advice.

    Angie