Want to Purchase A Home? Tips for Couples or Singles

[SummerChild]

Does anyone have tips for folk looking into buying a home (single family, townhouse, condo)?

Regarding programs, does anyone know of first-time homebuyer programs or downpayment or loan programs that are good resources? Looking online gives some info but most have income limitations that would prevent me from taking advantage. Got any information on any? On any w/out income limitations?

Any good information on shopping for loans, specific good loan programs, the 80/20 structure, interest only loans, adjustable rate mortgages, avoiding mortgage insurance, etc. ? I did some research a few years ago but would really like to gain the benefit of actual experience and knowledge about particular programs, loans or just good advice, etc.

Any information/advice about buying a home would be greatly appreciated.

[1browngirl]

You might want to check out the NACA program, there aren't any income limitations but there is a limit on the loan amount - I believe its $206,000. The interest rate is much lower than the standard rate. Its a no downpayment, no closing costs program. There's no PMI (private mortgage insurance) either. I'm going through the program now, their website is www.naca.com

[Afrochic]

Originally Posted by 1browngirl

You might want to check out the NACA program, there aren't any income limitations but there is a limit on the loan amount - I believe its $206,000. The interest rate is much lower than the standard rate. Its a no downpayment, no closing costs program. There's no PMI (private mortgage insurance) either. I'm going through the program now, their website is www.naca.com

I was just about to post about that program. My mother's friend went through the program and her interest rate was less than one percent. Her home was 150,000. I went to an orientation about the program, it's great.

[1browngirl]

Originally Posted by Afrochic

I was just about to post about that program. My mother's friend went through the program and her interest rate was less than one percent. Her home was 150,000. I went to an orientation about the program, it's great.

It is a great program. The money you would use for a down payment can be used to buy down your interest rate. After I went to the home buyers workshop and heard about people buying homes at interest rates of 2-4% I was really excited.

[mccoyred]

As far as a program goes, check out http://www.homenow.com/, DST's home ownership intitiative.

Some things I would advise:

• Don't make an offer on the first thing you see. When it comes to buying a home, your first instinct is not always your best.
• Only buy a fixer upper if you TRULY like doing that kind of work yourself and you have the time. Buying a fixer upper with the intention of bringing in a contractor to fix it up is a waste of money.
• Ask your home inspector as many questions as you need to; after all YOU are the one that has to live with it. BTW, don't let anyone tell you not to get a home inspection; it is your protection.
• When touring a home, always take someone with you (spouse, friend, family member) besides your real estate agent. Even confer on the side if you need to do so in order to make sure that you didn't miss something significant.
• Also, it may seem rude to look in closets and stuff but do it when you are touring a property; it can save you some unpleasantness down the road.

Good luck!

[PinkPop]

Yes, I hear NACA is very good. You have to qualify though. You have to earn less than the median income for the city your buying the house in or something like that. And if I'm not mistaken, after you buy the house you have to attend x amount of workshops. Which is good by the way. Nothing more spectacular than gaining knowledge(correct knowledge) and then spreading it around.

[SummerChild]

Hi Soror. I may be mistaken. It looks like NACA does not have an income limitation, but they have a max loan amount limitation. Do I have this backwards?
SC

Originally Posted by PinkPop

Yes, I hear NACA is very good. You have to qualify though. You have to earn less than the median income for the city your buying the house in or something like that. And if I'm not mistaken, after you buy the house you have to attend x amount of workshops. Which is good by the way. Nothing more spectacular than gaining knowledge(correct knowledge) and then spreading it around.

[SummerChild]

Thanks McCoyred, I will look into this program. Also, thanks for the tips. I will be trying to take a friend/relative with me, if possible, and looking into all closets from now on. Is there anything in particular that I would be looking for in closets b/c things like damage from leaks, etc.?
SC

Originally Posted by mccoyred

As far as a program goes, check out http://www.homenow.com/, DST's home ownership intitiative.

Some things I would advise:

• Don't make an offer on the first thing you see. When it comes to buying a home, your first instinct is not always your best.
• Only buy a fixer upper if you TRULY like doing that kind of work yourself and you have the time. Buying a fixer upper with the intention of bringing in a contractor to fix it up is a waste of money.
• Ask your home inspector as many questions as you need to; after all YOU are the one that has to live with it. BTW, don't let anyone tell you not to get a home inspection; it is your protection.
• When touring a home, always take someone with you (spouse, friend, family member) besides your real estate agent. Even confer on the side if you need to do so in order to make sure that you didn't miss something significant.
• Also, it may seem rude to look in closets and stuff but do it when you are touring a property; it can save you some unpleasantness down the road.

Good luck!

[SummerChild]

Thanks for the info everyone about NACA. Unfortunately, the loan limit in Cali is so low that it will not cover even most condos - something in the 300,000s. It looks like a really good program otherwise.

For anyone else that might be monitoring this thread, a friend was telling me that the preferred lenders for different programs are good sources for finding out about loans with lower interest rates than one might find at a typical branch bank, for example, even if the preferred lender is part of that bank - just b/c they are accustomed to searching for all types of loan programs and not just what's posted on the branch bank wall. So the preferred lenders of the programs, while one may not qualify, may be a good source anyway.

Originally Posted by 1browngirl

You might want to check out the NACA program, there aren't any income limitations but there is a limit on the loan amount - I believe its $206,000. The interest rate is much lower than the standard rate. Its a no downpayment, no closing costs program. There's no PMI (private mortgage insurance) either. I'm going through the program now, their website is www.naca.com

[SummerChild]

Anyone got any special advice/stories re new construction?

[SummerChild]

1BG,
Do you have any idea how long the program takes? I know that there are 10 steps to the process. Have you found that it's more like a few weeks to a month or three months or six months or otherwise?

SC

Originally Posted by 1browngirl

You might want to check out the NACA program, there aren't any income limitations but there is a limit on the loan amount - I believe its $206,000. The interest rate is much lower than the standard rate. Its a no downpayment, no closing costs program. There's no PMI (private mortgage insurance) either. I'm going through the program now, their website is www.naca.com

[1browngirl]

Originally Posted by SummerChild

1BG,
Do you have any idea how long the program takes? I know that there are 10 steps to the process. Have you found that it's more like a few weeks to a month or three months or six months or otherwise?

SC

SC, when I went to the workshop in January they said the process could be as fast as you wanted (if everything is in order - credit, debt, budget, mortgage qualification, etc) or it might take some time (if things aren't in order).

But, my former co-woker went to the workshop in July and closed at the end of September. For me, unfortunately it'll be a longer process but well worth it.

[Lady of Pearl]

I hear that now is a good time to buy, unlike last summer when I was looking. There are even some real estate agencies that are now offering assistance to those who work in the public sector like teachers, and firefighters to buy at reduced rates. However, I am not in the market now as I am tired of moving! and will save for that 20 percent downpayment to lessen that mortgage payment!

[AKA_Monet]

Okey, I just started looking at this thread, so most of the info is well stated.

What I have done with my husband is start a mixed "Brokerage" fund: mid-high cap invest to obtain the down on a house. We live way off where the buffaloes roam by Microsoft, so most houses run ~$800K+ for ~3500+ sq. ft. (Yeah, I know, straight jack). And these are new constructions.

If you live in my city, you ain't eva gonna get new construction, unless you like high-rises, which is dumb 'cuz we just had a windstorm that isn't a joke and we sit on a seduction zone, meaning earthquakes AND volcanoes...

And you really have to love fixer-fixer, upper-uppers.

However, you must factor the cost of living in your area. How far is it from your job? Is the area safe? All housing CMA's in LA will say houses make $$$. But do you have security? What is the security? Who are the neighbors? You know how LA is crazy...

The other thing is grocery stores and other needed incidentals, like gas, repair folks, fire/police, libraries. Then walk in the area, oneday, it is enjoyable to be there?

Yeah, the shores are, but that's what folks pay for and actually, they may not be "owning" their house, some company does... Or the government for ops...

If you want to live in Ladera Heights, you have to know someone who knows someone from my understanding...

And the Urban League has some kind of homeownership program...

And the only major new construction that I heard is going on down there is in Vacaville or Barstow...

[SummerChild]

So a friend was telling me of his hypothesis that if one waits until mid-summer or fall that the prices for homes will be much lower b/c they are generally falling and will continue to fall b/c so many subprime lenders are out of biz and cannot make the loans to many people anymore. He also noted that in Cali, the folk with homes probably won't want to move b/c you will have taxes way beyond what they pay now and cannot get the same house for their money.

As a result, he thinks that if one waits until summer or fall to place a contract on a place, that the real estate market will be near the bottom and with no where to go but back up but that sellers will be desperate and one can get a good price.

Has anyone heard of these ideas? What do you think?

SC