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Silly silly question...
So I'm not thinking many, if any, of you will know the answer to this BUT:
M and I were discussing the house thing again last night and he brought up this brilliant idea (ya know, cause he's wicked smaht like that):
He wants to try and get a mortgage with NO money down (I say HA! to that) and also this (I'll just use an example):
Get a house that is worth (again, just an example) $200,000, talk the seller down to $180,000 and take a mortgage for the full $200 and take the $20 grand at closing and use it to "furnish" the house.
As far as the no money down part goes, I don't think that is an option, at all. I have no idea how/where he came up with that genius idea.
The second part, I've never heard of that either, but a guy at my work said that's what his wife and him did.
SO, any one ever hear of any of this happening? I know there is a "Buying a House" board, but I don't post on any other board but this one, not to mention I'm sure I'd get flammed up the azz for asking this.
Re: Silly silly question...
That's what I thought. I thought it was "illegal" (so to say) to do that. But hey, wtf do I know.
Yep. You can't do that. Right now a lot of people are having difficulty getting mortages period because their houses are appraising for less than their offer to the sellers. You can get a loan after you get a mortage.
Also (free advice so you get what you pay for!) look at comps in the area and be careful about trying to lowball the seller. If you end up alienating them, they may be less willing to negioate period. However, you are looking at the right time of year for a deal. Especially in New England!
You guys are looking for single famililes, not condos, right? I just wanted to see if I could suggest anywhere to look.
I'm no pro and can only speak of what I've heard in my area. We did just buy a house though but we weren't first time homebuyers since DH didn't sell his old house until the beginning of 2007.
I don't think that's possible to take the mortgage out for higher than the purchase price, but I could be wrong. I think if you needed it to do work you could take out a construction loan type of thing.
The only loan I know of out there right now that will allow you to put zero down is a USDA rural loan. The only thing with that is you need to find a home in the area that qualifies.
You probably can get some grants being a first time homebuyer and be able to put little to nothing down though. I would talk to your realtor/mortgage broker and see what they think.
Good luck to ya.
PS - try the homebuying board too. It was really helpful when we were building and in the buying process.
First off all I can say is THANK YOU, that is what I was trying to tell him (men don't listen).
Yes Cassie, we are looking for SFH.
This might be a good thing for you guys to look into, especially if you're considering looking over the border in NH.
Are you guys considering H-vill? I get price updates from the area and I saw a nice looking short sale there a few days back. BTW, J loves downtown H-vill. We lived there when we first moved from ME so it's always funny to me. I think it's mostly his love of the Tap, but he like the old mill buildings in the downtown area in general. He claims when we move, he's going to make a blog called "H-vill is the new Brooklyn".
If you are going with an FHA loan you MUST bring 3.5% to the table.
They probably did what you were talking about a couple years back when they were giving out loans to ANYONE....you didnt even have to have proof of an income and they would give you a loan, so I could see maybe som fishy stuff going on then....
Now, like PP said, you are lucky to just get approved for the purcahse amount of the home.
Plus taking 20K out to furnish the house doesnt sound like a smart idea, because you will have to pay intrest on it and it will UP your monthy payments.
Lots of furniture stores (at least out here) are offering financing with zero intrest if its paid off in 2 years....that would be the smarter route to go. PLus if you get one soon you get that 8k for free, so why take out more money that you will owe on and have to pay intrest on (if it were allowed)
Cassie - NH is a last resort, M doesn't want to move there unless we really can't find anything down here. Yes, Hvill is an option. I too love downtown Hvill (minus the iditos who drive through it), sadly, I've never been to The Tap, but always wanted to go. BTW, that blog = effing.awesome. I would totally follow that.
Well Sheri at least SOMEONE has their head on straight with this whole house thing!! LOL (sorry sheri's dh! bad idea!)
Good luck with your searching. We ended up having to open our search area..We wanted to stay in our area but the hosue were either way to much $$$ or the ones in our budget were in realllly poor condition (like FHA wouldnt even approve a loan for them types of conditions)
Once we opened up our search area a little wider, we found a TON of great houses. WE totally love our ara now!!
You can get a loan for how ever much the house is worth, as in "appraized for".
So if the house "appraized" for 200,000 and you got it for 150,000 you can still get the 200,000 amount because that is what the house is worth to the bank.
Yeah, I really don't understand that either (sorry M!) Why would you want to add interest payments if you don't have to? It's all about lessening the financial burden, not adding to it!
We actually found a house in the same town, that is right around the price range we want, I just don't know about it, so we are going to find out about checking it out in person. I'll find the link for it and post it. To me, it needs updating. We are looking for our "forever" home, not a "starter", so I don't know if just getting one that needs updating would be the way to go since we are planning on being in it "forever" (unless, God forbid we need to move again). Or if we would be better off looking at "newer" homes.
I would go with one that needs updating over newer, but thats just me.
Ilove older houses that have character, PLUS older homes seem to have been built to last vs newer homes (at least out here thats how it seems)
Our house (and just about every single one we looked at) needs at least SOME updating. WE actually looked for houses that needed some work, because then we can put our own touches on the house.
Our house needs New floors depsertly, but its something we can live with until we can change it. It also needs some walls knocked down, which will happen in due time.
We did remove the popcorn ceilings before we moved in, painted, and put new ceiling fan in through out.
Rather than showing him all of this with an i told you so attitude, I would just let the professional laugh in his face. It would be much more amusing to me.
Karrey...I agree.
Here's the house M showed me last night...I don't know how I feel about this one. I know pictures are FAR different than seeing it in person. I'm willing to check it out, buuuuut...
http://www.realtor.com/realestateandhomes-detail/56-King-Street_Groveland_MA_01834_1115137337
Its a nice size and the lot is HUGE!! When we were looking FIL kept saying look for the biggest lot you can get, but out here, land is hard to come by.
Hre is what I see with this house
Pros:
Corner lot
Basement
Has built-ins
Basement
Cons:
WOOD PANELING (Which can be easily removed, or painted to mask it.
Didnt show any pics of the bathrooms, that could = scary
The kitchen is waaaaay outdated. You could totally sand and stain the cabinets though (thats what we did and they look great!) You can wait to replace the counter tops (We have to wait as well) You can probably find a new stove on CL for cheap!
The ceiling tiles are weird to me, but that could be an east coast thing??
Now here's a house I came across and pph (minus the wall colors, but totally fixable), though it's located in NH (about an hours drive up from where we currently are):
http://www.realtor.com/realestateandhomes-detail/42-Harriman-Hill-Road_Raymond_NH_03077_1111938289
THIS is the big factor that drives me nuts about that house. BUT, like you said, M said we can "change it later".
I really like this one! That kitchen looks huge. I'm with you on the wall colors but nothing that a coat of paint can't fix.
HONESTLY between the two you just showed me I would go with the one YOU picked! That kitchen alone would sell me, its so open and big and updated!
Like you said, the only thing I see wrong with the hosue is the current owners choice of colors! Good lord! Nothing some new piant cant fix!
I would for sure go look at this house!
Plus an hour drive is just far enough that your IL's wont just swing by un-annoucned!
The floor plan of this one looks so much more open. The kitchen is huge! Just based off the online listings I prefer this one by far!
I'll tell J he'll have at least one reader! This is that short sale. You've probably already seen it. It stuck out to me because it looked pretty updated. http://www.trulia.com/property/1093414098-301-Primrose-St-Haverhill-MA-01830 I'm not too certain on the exact area, but it's not far from the castle I think.