Buying a new house and loans
  • GlitterQueen GlitterQueen
    Posts: 2,491Member
    I am new at this and not sure what to do. I applied for a pre approved loan. We have 158k in medical school debt but is on deferment because they are supposed to reassess the loan and adjust the payments based on our income. I don't really understand fully how this process works. So if we get approved for like 30k as a down payment on a house that is say 95k can we give a down payment from the loan and then make payments to the bank on the rest? We currently own our house, no payments. I think it could sell for at most 70k but dh wants to hang on to it and rent it out. Any advice?
  • GlitterQueen GlitterQueen
    Posts: 2,491Member
    @verdictlesslife I have no idea what I am talking about! LOL can you tell me how it usually goes then I will ask questions? Say the new house is 95k

  • Mai
    Posts: 955Member
    I have no idea about loans and financial stuff. DH takes care of all that. But I do have a funny story...
    Our friends are trying to buy their first home and went to talk to a loan officer. My friends DH was the one doing all the talking. The loan officer said he needed to watch out for balloon payment (?) and his wife said "I'll have a red one."
    She seriously thought the loan officer was talking about balloons. Like birthday balloons.
  • GlitterQueen GlitterQueen
    Posts: 2,491Member
    @youcansuckit lol


    I just don't know if we can afford another house. we could make around 400 a month payments. dh doesn't make much money, but we are running out of room in our current house, we feel squished in here. I am kansas so most houses are cheaper here than the rest of the country.
  • CinnaCinna
    Posts: 1,841Member
    I think you were asking if you could pay the down payment from the loan money. is that right? If that's what u were asking then I don't believe so. I think you have to come up with the 30k yourself. Also if you were approved for 95k you could get a house that's 125k because the down payment is included in that
    Two hearts! Oh baby I'm beating out a samba!
  • GlitterQueen GlitterQueen
    Posts: 2,491Member
    okay so the loan needs to be the full amount for the home price? And any down payment would have to come from us? What is the usual min down payment percentage?
  • breezybreezy
    Posts: 3,465Member
    a traditional loan is 20% down... If you are buying a house at 95k 20% would be ... er.. almost 20k.
    You don't have to get a traditional loan though. Their are different kinds. Talk to a lender! 
  • breezybreezy
    Posts: 3,465Member
    I just bought a house that was a "FHA" that was state bonded our down payment was 3%
  • GlitterQueen GlitterQueen
    Posts: 2,491Member
    what is FHA?
  • breezybreezy
    Posts: 3,465Member
    Idk... first time home buyers assosiation maybe... even though its not my firt time buying. If you and your dh talk to a lender that you trust she/he will line you out with the right loan type or the steps you need to take to get debt paid to be eligable or the right loan.
  • AnonholeMomAnonholeMom
    Posts: 406Member
    Anyway to declutter and stay where you are?  No rent/no mortgage is an awesome situation to be in.
  • realtormomrealtormom
    Posts: 722Member
    FHA is Federal Housing Authority. They have loans starting at 3.5% down. There are also USDA financed loans with 0% down. Both have some fees attached that you pay out with your mortgage. Also, with both you can ask the seller to pay your closing costs and help with your fees. If you or your SO are or were military, there are also VA loans. Check with two or more local lenders for their programs/options. The national on line people won't know about special programs in your area.
    The past has a vote, not a veto ~ Moredecai Kaplan
  • GlitterQueen GlitterQueen
    Posts: 2,491Member
    we could declutter, our house the main floor is 720sq feet we have a finished basement but its the same space. its a two bedroom there are four of us. and a dog and a cat. There is an asian family next to us and there are 6 of them living in a house built the same as ours
  • GlitterQueen GlitterQueen
    Posts: 2,491Member
    @realtormom my husband was in the army but has an honorable discharge would that still count?
  • GlitterQueen GlitterQueen
    Posts: 2,491Member
    like this house is 85k    image




    and this one is 110kimage
  • AnonholeMomAnonholeMom
    Posts: 406Member
    Sounds like our area.  Our house was $120,000 and I think it's fabulous.  An attached garage and a dishwasher?!?  Luxuries! 
    :))

    But now that we're in it, we're realizing we can't pay the mortgage AND upkeep.  We need new windows.  And mulch for the landscaping.  And the outdoor carpet on the patio disintegrated.  So we wrap the windows in shrink wrap, mow over the landscaping and started a coin jar for the Carpet Fund.

    That's why I'm pushing to stay payment free.  :) 
  • GlitterQueen GlitterQueen
    Posts: 2,491Member
    i really don't think we could go over 100k it would be better if we can get a fixer uper. Dh is very handy and skilled at fixing things.
  • anonymommy
    Posts: 1,652Member
    Is an addition to your current home an option?
  • GlitterQueen GlitterQueen
    Posts: 2,491Member
    Dh doesn't want to do that. Maybe i should do a couple mock layouts
  • Still_ur_mommy
    Posts: 534Member
    I don't think you can get FHA if you already own a home.

    In our state to buy a second home you need 20% down.
  • Still_ur_mommy
    Posts: 534Member
    We are currently doing a short sale on our home. Bought for $275,000. Offer right now $95,000.

    Our house payment is $2400. A month, can't even rent it out for $1200.

    Sucks
  • GlitterQueen GlitterQueen
    Posts: 2,491Member
    We paid for ours out right. No loans or anything.
  • AnonholeMomAnonholeMom
    Posts: 406Member

    We are currently doing a short sale on our home. Bought for $275,000. Offer right now $95,000.

    Our house payment is $2400. A month, can't even rent it out for $1200.

    Sucks



    Holy shit!  That must be so stressful and heartbreaking for you!
  • AloneOverseasAloneOverseas
    Posts: 2,312Member
    The second house looks awesome! And huge!

    Yes, I believe you would qualify for a VA loan because DH was in the military. Don't think because he is not active makes a difference. And as said above, the deposit is so small and there are options re fees.

    I bought a house years ago in Ohio, got an FHA loan. Only way I could do it because I had very little (no significant) deposit. I think with VA loans you can also use gifted money as a down payment where you can't with FHA (at least that was the case in '97). And the seller helped with my closing costs and they also provided me with a one year guarantee (don't remember the correct term) but it meant if anything went wrong with the house in the first year, there was special insurance to cover it.

    But you really need to sit down with a loan officer, go over your finances and see if you can afford to buy and rent, or not. Having no mortgage on your current home is huge! It would mean all income from the rental would be gravy (minus what is needed for insurances, taxes and upkeep). So that could also be used to top up your mortgage payments on the new home.
    I love purple; I love cats. Imagine if cats were purple ...
  • breezybreezy
    Posts: 3,465Member
    @still_ur_mommy I am so sorry. I have been through it too. Truly heartbreaking! Our lawyer suggested a bankruptcy.
  • AloneOverseasAloneOverseas
    Posts: 2,312Member

    We are currently doing a short sale on our home. Bought for $275,000. Offer right now $95,000.

    Our house payment is $2400. A month, can't even rent it out for $1200.

    Sucks





    Ouch! So I take it remortgaging isn't an option ... Oh that does suck. Can't fathom that house prices/values have dropped so much. That is huge! :(
    I love purple; I love cats. Imagine if cats were purple ...
  • What @aloneoverseas is talking about is a HOME WARRANTY - and in this market most sellers will pay for it. We sold our house, paid for it, and then we bought our current house and the sellers paid it. So a wash. It even covers appliances in the house - so ask for the best one.

    FHA does not accept over a certain amount of gifted money. But, there are also "neighborhood revitalization" areas that will give you a loan for your down, then forgive it if you stay in it for 5 years. But, FHA doesn't care how much cash you have on hand - so hey, go in with as little as possible. UNLESS it is going to make a significant different to the rate you get. Also, if you have 20% down you won't pay for mortgage insurance (that is expensive!!! and once you have it usually have to pay for it for 2 years). But, don't deplete cash resources that you have.....you are going to need them (as you know)

    I know your home that you are currently in is paid for, so DH wants to rent it out. Have you look at the tax implications? What about still paying property taxes and insurance on it - as a rental? Homeowners on a rental is more expensive than homeowners. Can you handle dealing with a rental - and the expenses / repairs / upkeep on two homes? Do you want to? There is a lot more to owning a rental than just collecting a check every month.
  • AnonholeMomAnonholeMom
    Posts: 406Member


    I know your home that you are currently in is paid for, so DH wants to rent it out. Have you look at the tax implications? What about still paying property taxes and insurance on it - as a rental? Homeowners on a rental is more expensive than homeowners. Can you handle dealing with a rental - and the expenses / repairs / upkeep on two homes? Do you want to? There is a lot more to owning a rental than just collecting a check every month.



    Another side of the rental thing is finding reliable renters.  My parents own 2 homes--rent one out--and they have without fail had people who either flaked on rent or did damage to the house.

    Crazy story, but our condo had a low rent rate because the previous tenant committed suicide in it.  Our landlords said the place had been empty for 2 years because no one wanted to live there afterwards. 
  • GlitterQueen GlitterQueen
    Posts: 2,491Member
    The taxes on our house are $900 a year. i am re reading everything to make sure I understand lol
  • loveitloveit
    Posts: 1,738Member
    OMG a house like that here would be $300k-400k!!
  • $900 a year!?!?!??
  • GlitterQueen GlitterQueen
    Posts: 2,491Member
    yeah....why?

  • Um. We had a house worth $80,000 in a very economically depressed area of Ohio (don't buy before you live somewhere - lesson learned!) that had taxes of $1,800 / year. Now we live in a $150,000 (or so) hour and in a very nice area - and it is $3,700 a year. That seems crazy low!
  • Peace
    Posts: 3,230Member
    "So if we get approved for like 30k as a down payment on a house that is say 95k can we give a down payment from the loan and then make payments to the bank on the rest?"

    Hi GlitterQueen!
    No, if I'm understanding your question correctly, that's not how it works.
    If the house is 95k, you would need to put about 20% as a down payment, $19,000.00
    Then get a mortgage for the rest of the cost, $76,000.00
    The banks won't give a loan for the full amount, you need to have your own money to put in.
    You'll also be paying closing costs, plan on $10,000.00 for those, and you should be safe.

    You are in a great position that you already own a house free & clear! Congrats!!

    Just throwing out unsolicited advice here.. :)

    A 30 year loan would be around $550.00 per month
    (76,000 @ 5% interest, rounded up for ins & taxes)

    1- Go to Amazon.com & order a book for 1st time home buyers.
    The Dummy series one has a high rating.
    Study it! You will be amazed at how much you'll learn, and mistakes you avoid.

    2- Get your & your dh's free credit report.
    www.FTC.gov/freereports Pick one agency & get both of yours from there.
    Review it carefully & make sure there are no mistakes.
    Use the tool on how you can improve your scores.
    Start doing what it says.
    In 4 months, go back & pick another agency & get both again.
    There are 3 agencies, you can get one free report a year from each.

    3-Don't do a thing before you know what the school loan payments will be!

    4-I really would encourage you to wait to buy...you are in such a great position now. I'd love to see
    you take advantage of it.
    You could use the time to make sure you have an emergency fund set up, pay down the school
    loan, & save for a new place. Start practicing now for having a mortgage. Put $550 a month in a
    separate bank account, starting March 1st. When they tell you the school payments, pay an extra
    $250 on every payment, and now put $300 a month in savings.

    Just ideas, I don't know your situation, and these #'s are seriously roughed out...I always overestimate to be safe. I'm not familiar with any of the government loans, or little down mortgages.
    My examples are based on traditional 30 yr mortgage.

    Good luck, whatever you do!



  • We brought $7,800 to the table. Seller paid all closing costs. $138,600 for the house. FHA.

    Sellers are almost always paying all closing costs right now.
  • Peace
    Posts: 3,230Member
    @LivinTheDream, thanks!
    I'm not at all versed in those loans. And I've heard of sellers doing cash back or covering some closing costs, but I thought that was mostly in the hardest hit seller's markets in areas.

    I just tend to be very careful after the housing market debacle.
    It was sickening how so many lost homes or way overpaid...
  • The people who we bought the house from brought over $40,000 to the table. And it doesn't sound like a "hot" market to me. Just based on prices.
  • GlitterQueen GlitterQueen
    Posts: 2,491Member
    I found out we are on deferment on the student loans until next Jan. I spoke with a loan officer, she said dh credit was good and that a loan could be approved off his credit. Although dh is pissed I talked to a loan officer, said they would check the credit and his credit rating would go down. Dh found a house he likes....imageimageimageimage




    this one is 87k
  • AnonholeMomAnonholeMom
    Posts: 406Member
    Arts & Crafts style?  Early 1900's?

    (Sorry. Can't keep styles straight.)
  • Peace
    Posts: 3,230Member
    Holy crap. That house is around $95,000?
  • Where are you?? Those houses look like the ones the next town over. And the prices
    Are right.
  • anonymommy
    Posts: 1,652Member
    On the student loans, just to give you a rough idea of what you may be facing, I came out of law school with $120,000 in student loans. My payments are $870/month after consolidation which lowered them from about $1200/month. Your DH's will be higher, of course, since he owes more. Are there any options available to him for student loan forgiveness?
  • GlitterQueen GlitterQueen
    Posts: 2,491Member
    We are trying to get the loans down can you tell me more about the student loan forgiveness? I live in wichita ks
  • anonymommy
    Posts: 1,652Member
    With law school if you work in certain public service positions (where pay is too low to realistically pay the high student loans), a percentage of your loans may be forgiven. I've heard of something similar with doctors in rural clinics or high need areas. His med school should have some info on it.
  • GlitterQueen GlitterQueen
    Posts: 2,491Member
    My husband can't be a doctor. The school accepted him, he went for two years. He was getting a felony expunged or trying to last summer before clinicals. The school found out about the felony and expelled him and left us with a debt we can't pay and an education he can't use. He will have to start from scratch which would incur more loan debt
  • anonymommy
    Posts: 1,652Member
    Oh, no! Now that you say that, I remember you said that in another thread. I'm so sorry! How frustrating!
  • GlitterQueen GlitterQueen
    Posts: 2,491Member
    When i spoke with the student loan people today they said there is a chance based off income of it being forgiven I don't want to get my hopes up. Thanks @Goddess
  • GlitterQueen GlitterQueen
    Posts: 2,491Member
    The houses here are cheap and i just got an email that two we have been looking at reduced by 5k. Thanks @Goddess
  • LoveLove
    Posts: 14,066Administrator, Moderator
    @GlitterQueen that house is goooorgeous! 
    I have no advice on the mortgage, sorry, but that place is so pretty, I couldn't not comment LOL

    My student loan repayment plan is based on a percentage of my income, btw. Just throwing that out there...

    community-manager


  • Doxiegirl
    Posts: 13Member
    Good luck to you Glitterqueen! You have to look at the school debt as a mortgage payment. Even tho it is deferred, you will still need to pay it off. Sorry, he is not allowed to finish. We need more good docs (DH and my Dad are docs). That house is an incredible find. I would snatch it up! Just make sure you could make the payments on your own. One never knows how long marriages last......factor in child support..... Read and learn as much as possible. Knowledge is power. I have bought and sold many homes but still learn something each time.

  • GlitterQueen GlitterQueen
    Posts: 2,491Member
    The payments on the last one would be around $400