Feb
14

What is the best way to sell a house fast in order to purchase a new home?

Question: What is the best way to sell a house fast in order to purchase a new home?
Sell first house – Purchase a new house

Answer:

if you sell your home first you may need to find temporary housing until you close on the new home.  Most people try to coordinate the sale of their current home with the purchase of their new home. That may be easy or hard depending on where your home is located and obviously it’s appeal. 

Find a great Real Estate Agent (like me) that can help you identify what needs to be done to make your home marketable/desirable and price your home sell without giving it away.

Give your answer to this question below!

Feb
13

How do I record on my taxes a rental house purchase for less than tax value.?

Question: How do I record on my taxes a rental house purchase for less than tax value.?
My husband and I purchased his grandmother’s home from his dad and two brothers. One brother forfeited his 1/3 of profit to keep the house in the family. We paid the other brother cash for his 1/3. Once we get the house ready and rented, we will start paying my father-in-law back his 1/3. What value should I use for the purchase price of the home? How will that affect our taxes by paying less than tax value for the home?

Best answer:

Answer by artillerygirl01
It won’t affect your taxes until you actually start renting it out and earning income. You use the purchase price of the home plus any capital improvements you made as your cost basis in the house, and you will depreciate that value over the life of the home, using the IRS depreciation schedule.

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Feb
09

I need to find a way to finance a house purchase?

Question joe bloe: I need to find a way to finance a house purchase?
I make under 30K a year, I have a horrible and I mean HORRIBLE credit history because of my ex wife’s mismanagement of our finances. I want to be able to purchase my grandmother’s house back but it is valued by the bank at 500K
I know but the question is ALTERNATIVE ways!!

Best answer:

Not going to happen. You do not have the income to make those high payments or even pay the property taxes.

Give your answer to this question below!

Feb
08

Q&A:Home Purchase?

Question: Home Purchase?
My husband and I were pre-approved for a mortgage. We found a house we liked and put in a contract on it. We had a foreclosure  back in 2008  and some lates on other accounts around the same time. Since then we have had good credit. We have established new trade lines that are over a year old with no late payments. Our credit scores are 606 and 614. We are going through underwriting and they are telling us that we aren’t being approved because of the foreclosure we had, nothing was said when we were being pre-approved for a loan. The loan officer told me that I need to write a letter explaining how and why we went to foreclosure. We lost our home due to an ARM rate that we couldn’t afford it. Can this help with our FHA loan approval?

Best answer:

The loan officer that did your pre-qualification letter obviously did not know FHA guidelines. That’s why now that the underwriter is taking a closer look, they obviously don’t like what they see. One year of payments on trade lines doesn’t negate a foreclosure and your scores are still really low.

FHA guidelines are 36 months since foreclosure. Credit score ABOVE 620!

If there are negatives on your credit since the foreclosure. FHA will want you to have COMPENSATING FACTORS in order to get an exception. These are:

1) Job stability
2) Year over year growth in income
3) Paid off/down credit accounts
4) Paid off collections (except medical)
5) Assets (reserves)
6) Low DTI Ratio (Debt to Income) / Good income over your payments

A letter stating you didn’t anticipate your previous ARM payment adjusting is just not good enough.  Legitimate reasons are usually medical, death in the family forced change in income. 

Give your answer to this question below!

Dec
28

How can we buy a home?

Question by Amy: How can we buy a home?
My boyfriend and I are interested in buying a home. I have good credit, and he has so-so credit. He makes the majority of the household income. I work part-time. Is there a way we can purchase a home together?

Answer:

It’s definitely a good time to buy with the combination of low interest rates and home prices.

Credit is a big factor when looking to get a home loan.  A lot of buyers today have tarnished credit because of the recovering economy. You should have a Mortgage Professional evaluate the credit and employement history of  the both of you to see if buying a home right now is possible. If not, the Mortgage Professional may be able to refer you to a reputable credit counseling company that can help you get on the right track.

Give your answer to this question below!

Dec
13

How important is your credit score when attempting to purchase a house?

Purchase house
by wallyg

Question: How important is your credit score when attempting to purchase a house?
I want to purchase a home with the lowest down payment required. My credit score however isn’t that great. My finances have now bounced back and I have been paying-off collections, ect.    My credit score is kinda low due to my past. Step by step, what should I do?

Best answer:

With tarnished credit your best choice would be an FHA loan. FHA requires a 3.5% of the sales price as down payment. FHA still does not require a minimum credit score. But individual lenders Do!Most are sticking with 580+. Some are going as low as 500, but require a higher down payment.  Assuming that you have not had a foreclosure or bankruptcy within-in the past 2.5 years. To get started Pay-off any judgments and/or collection. Try to pay down some lines of credit (Credit Cards). Do not confuse paying down or paying-off with closing the account. One factor that determines your credit score is the number of lines of credit you have and how long they have been open. Bring any ongoing monthly expenses (Insurance, utilities, etc.) current. Taking those steps should bring your credit score up. 

In the State of Virginia there is a program called the VHDA/FHA Plus that is designed for first-time home buyers or for people who have not owned a home for at least 3 years.                           The qualifying ratios are a little tighter than regular FHA but you can buy with No Money Down.

Your credit score needs to be at least 620+. No recent late-payments, judgments and/or collection. If you have some old judgments and/or collections pay them off!

This program is a collaborative effort between VHDA (Virginia Housing and Development Authority) & FHA (Federal Housing Administration). The 1st trust is an FHA loan for 96.5% of the sales price and the 2nd trust is a loan for 3.5% of the sales price. Unlike the no money down Arm’s of years past. These are fixed rate loans that have interest rates that are competitive with ordinary FHA loans  that require 3.5% in downpayment.  

National Association of Realtors

 

Know better? Leave your own answer in the comments!

Sep
25

Are Lease Purchases an alternative way to purchase a home?

HouseIn the present real estate market, a new trend in the form of lease purchase agreement has been gaining momentum over more conventional home buying methods.

There are numerous reasons why some potential home buyers are trying  to go this way.

Some people may have been transferred from another State and want to feel the pride of homeownership. Others may have tarnished credit or lack the funds for a true downpayment.

If you want to find out whether this sort of  home purchasing method will suit your individual requirements, you need to understand  what are the actual implication of entering into this type of real estate agreement.

A brief overview is outlined in the following paragraphs that will give some basic knowledge of the process.

Before signing a lease purchase agreement, you must understand what are the implications of such an agreement.

This form of real estate contract is a combination of a lease and a purchase. Meaning that you are renting the property from the property’s owner with the intention to buy it. What makes it different from just renting is that you may have given additional consideration (money) to your landlord for the option of buying the property. You must make sure you have a very well written lease purchase agreement that specificly lists your rights and obligations. Simply paying your landlord for the option to purchase the home without any form of contract will likely lead to loosing your money to an unscrupulous landlord.  

One additional benefit of this type of purchase is that it can give you first hand experience at being a homeowner.

As an aspiring homeowner who is willing to try to purchase a home using a lease purchase agreement, you need be be fully aware of all specific responsibilities involved in your contract.

You need know about all the terms and conditions that are mentioned in your agreement.

  • You must know what are the penalties for a late payment.
  • Who is responsibe for repairs, routine maintenance.
  • Any fees in additional to your monthly “Rent”.  

Please be aware that most  lease purchase agreement have the leasee paying for repairs and maintenance to the property.

Jun
09

Q&A: 3 people purchase house & we all have unpaid bills can A lien be put on the house?

Question by Eric : 3 people purchase a house together and  all have unpaid bills can A lien be put on the house?
3 people get enough money to purchase a house together, One is retired with social security only and just recently stopped paying her credit card bills because of lack of funds. Can the credit card company’s put a lien on the house they plan to purchase together?
Could a creditor put a lien on a house that has 2 other people on the title? The other two people could sue the hell out of the creditor that put the lien on their house right?

Best answer:

Answer by tazman111
no. credit cards are unsecured loans. just do not sign any paper work putting your house as collateral. if this is a bank loan than yes ,they would be able to put a lien on it

Add your own answer in the comments!

Apr
07

What is the best way to finance a 50k house purchase?

Purchase house
by wallyg

Question by Brad: What is the best way to finance a 50k house purchase?
I am thinking about buying a property for about  50k while the housing market is still low. But I only have around 20k in savings. I don’t want to use it all because most likely the property will need some repairs. So, what is the best finance strategy  How much Do I or should I use for this home purchase?
Thanks.

$50,000   Sales Price

20%  =  $10,000 Downpayment

80% = 40,000 Loan

Summary: $ 10k downpayment  $ 40k mortgage

There are other options requiring less down-payment but this would give you the best interest rate and monthly payment.

Get a home inspection before your purchase to make sure the home doesn’t need major repairs.

And last but not least get a fixed rate mortgage.

Give your answer to this question below!

Apr
06

Can I keep the purchase price of my house out of the public records?

Question by dave: How do I keep the purchase price of my house out of public records?
I am about to close on a home purchase in about a month and want to prevent the purchase price from showing up in the public records. I heard that there is a way to prevent the county from publishing this information in public records, but not sure about how to go about getting this done. Does anyone know how to do this?

Best answer:

My understanding is that its not possible to avoid real estate sales from going into public records. The law states that it is a “Matter of Public Record”.  If this is important to you, consult with an attorney that knows real estate and can best guide you.

If it can be done I would be interested in finding out how.

What do you think? Answer below!