Want to Purchase A Home? Tips for Couples or Singles

[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

[SummerChild]

Info about FHA loans - only requires 3% down. Also, apparently allows higher debt-to-income ratio and does not look at fico scores for those interested.

I might look into trying to get one of these if I can get under the loan cap of 362,000 and do the NACA program to obtain those benefits with closing costs reduction.


SC

FHA Loans - FHA Loans Bounce Back in Favor
From Elizabeth Weintraub,
Your Guide to Home Buying / Selling.
FREE Newsletter. Sign Up Now!
Buyers Returning to FHA Loans
FHA mortgages are becoming popular again! It's an institution that has been around for a long time, since June 27, 1934. The Department of Housing & Urban Development folded the Federal Housing Administration (FHA) under its umbrella in 1965.
FHA loans began to lose favor in the late 1990s, when home values began to inch upwards, surpassing FHA mortgage limits, and sellers balked at FHA's stringent appraisal guidelines.

How FHA Loans Work
Now, FHA does not make loans or guarantee loans. It insures loans. The insurance removes or minimizes the default risk lenders face when buyers put down less than 20 percent. Without further approval from FHA, its approved lenders are authorized to:


Take loan applications

Process loan applications

Underwrite and close the loan
FHA Increases Mortgage Limits
My parents bought our first home in 1955 for $9,000 with an FHA loan.

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All-Credit-Scores.BestRatesFrom.US
It's almost inconceivable to think of a home costing that today. As a result, FHA periodically increases its mortgage limits. As of July, 2006, mortgage limits range from:
$362,790 for high-cost areas

$200,160 for low-cost areas

$544,185 in Alaska, Guam, Hawaii and the Virgin Islands
Blemished Credit History
If your credit is less than perfect, FHA might be the loan for you. You may qualify for an FHA loan even though you have had financial problems.


FICO scores do not apply.

Bankruptcy. You can obtain an FHA loan two years from the date of your bankruptcy discharge, as long as you've maintained good credit since your debts were discharged.

Foreclosure. If you keep your credit in excellent shape since a foreclosure, an FHA loan will be available to you two years from the final date of your foreclosure.
Competitive Rates & Terms
Today's terms are pretty straightforward. In fact, in many markets the rates and terms are better than those for 80% / 20% piggyback loans.


There is little or no adjustment to the interest rate for an FHA loan, as the rates vary within .125 percent of a conventional loan.

Mortgage insurance is funded into the loan, meaning a premium of 1.5% is added to the loan balance instead of being paid out-of-pocket. In addition, a small portion for the mortgage insurance premium is added to the monthly payment, but it is far less than private mortgage insurance premiums.
Borrowers can finance 97% of the purchase price and put down 3 percent. In some instances, when combined with other types of loans, the down payment can be zero.
Allowable debt ratios are higher than the debt-ratio limits imposed for conventional loans.
Fewer Required Repairs
At one point, FHA repair demands were so excessive that sellers would discount the list price to buyers who would agree to obtain conventional loans over FHA loans. Today the requirements appear more reasonable.

Defective roofs that leak still need to be replaced but an older roof does not necessitate replacement if it doesn't leak.
Windows that stick upon opening or have cracked panes do not require replacement.
FHA appraisals do not take the place of a home inspection, never have. Buyers should still obtain a professional home inspection.
FHA loans are available to anybody but are used most often by first-time home buyers and low- to moderate-income buyers.

[Conskeeted7]

Hey Soror,

As for waiting until summer to purchase, I think it depends on how the market is moving. For me, the market is moving slow, so there are still homes on the market that have been on for several months already. So, they've lowered their prices already and I can take advantage of that. However, the market does typically heat up in the spring and summer. Those people who listed early in summer and are still on the market by September will probably be more willing to negotiate and take an offer much lower than asking.

[mccoyred]

From a seller's point of view, Spring is the ideal time to list. Why?

• flowers are in bloom so the curb appeal and neighborhood appeal are at their highest
• buyers are getting their income taxes back and may have extra money available for those pesky closing costs
• corporations are hiring after posting first quarter results

From a buyer's point of view, Fall is the ideal time to list. Why?

• sellers may have had their property listed since the spring and are more likely to be willing to negotiate or lower the price because they don't want to be stuck during the winter
• buyers want to get some of the tax benefits of home ownership before the end of the year
• many buyers can easily pick up a part-time job or get bonuses during the holidays to help them adjust to a possibly higher house payment

[SummerChild]

I just spoke with my lender about Fannie Mae loans.
The financing is 100% (so you don't have to save up for the 20%) and the interest rate that he is able to get for me is 5.8%, which is very good right now. The only catch is that the property has to be one that is built to strict Fannie Mae requirements.

Originally Posted by 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!