80/20 homes for sales

[tjmica]

We have been approved with an 80/20 home loan, which actually fits our needs at this time. I had a previous bankruptcy due to divorce in 1997, I refiled last year with my new husband of 8 years. Since my past is still haunting me we cannot get 100% financing at this time. Our problem is finding a seller who will accept this type of loan. My question is how can we find a home? I have been searching on the web and our realtor is having problems searching as well. Can anyone help us? We live in Columbus Ohio and would like to stay in the 43207 zip code and hopefully the Hamilton Township school district.

[lilgoose]

Can I ask why you are having such a hard time finding a home? I don't think an 80/20 should effect a seller. This type of loan is two loans that you are willing to take on to buy a house with. A seller shouldn't have anything to do with this.

Are you tied to your realtor in anyway? Is there an obligation that you must use them to purchase? If not, then call other companies and tell them that you have a pre-approved loan and are ready to purchase and see what they tell you.

As a seller, I wouldn't care where you are getting the money as long as I get to sell the house!

By the way, I, too, live in Ohio. Where did you get financing? How long ago did you file, what chapter? We are land contracting and have been almost a year into it and have discussed trying to refi the house~still have 2 years on the contract, so we can wait if we need to.......Kind of nice if it was ours instead....

If you want to, you can PM me and chat that way. Very curious as to who and how you have done this with.

[chucko]

There has to be more to the story. Why would the seller care how he gets funds in his hands, as long as he does. Is it because they want some cash in hand at closing rather than waiting however long for the wire transfer??

[JeepMom]

Type of loan should not matter.

The only time what loan comes into play is if you bid on a house contingent on financing. Someone else can come in and pay cash and take the house from you unless you can come up with the cash right away.

[MTG_BANKER_OH]

We have been approved with an 80/20 home loan, which actually fits our needs at this time. I had a previous bankruptcy due to divorce in 1997, I refiled last year with my new husband of 8 years. Since my past is still haunting me we cannot get 100% financing at this time. Our problem is finding a seller who will accept this type of loan. My question is how can we find a home? I have been searching on the web and our realtor is having problems searching as well. Can anyone help us? We live in Columbus Ohio and would like to stay in the 43207 zip code and hopefully the Hamilton Township school district.

I do not understand the problem with the seller accepting this type of loan? Many people do 80/20's and there are no issues with the seller. You may need to find a new realtor they do not seem very experienced. Please explain a little more, you said you have been approved for an 80/20 but you say you can not get 100% financing? Are you looking for some sort of seller held mortgage for 20%? What exactly have you been searching the web for?

[MTG_BANKER_OH]

Can I ask why you are having such a hard time finding a home? I don't think an 80/20 should effect a seller. This type of loan is two loans that you are willing to take on to buy a house with. A seller shouldn't have anything to do with this.

Are you tied to your realtor in anyway? Is there an obligation that you must use them to purchase? If not, then call other companies and tell them that you have a pre-approved loan and are ready to purchase and see what they tell you.

As a seller, I wouldn't care where you are getting the money as long as I get to sell the house!

By the way, I, too, live in Ohio. Where did you get financing? How long ago did you file, what chapter? We are land contracting and have been almost a year into it and have discussed trying to refi the house~still have 2 years on the contract, so we can wait if we need to.......Kind of nice if it was ours instead....

If you want to, you can PM me and chat that way. Very curious as to who and how you have done this with.

Where are your scores currently? Did you file Chapter 7 recently? Once you are a year into the land contract you should be able to refinance it if the equity is there and make it your own. Do you think the home has appreciated any in the past year?

[tjmica]

Mortgage after BK

Well after speaking to the lender Home 123, they stated that they would pay the seller 80% of the mortgage and the 20% would be paid by us directly to the seller each month. Then after a year we would refinance it, but no one seem to want to deal with the 20% end of it. Our score right now are in the high 5's and 6's, but of course they use the middle which is the high 5's. We have been discharge since August 2005.

Where are your scores currently? Did you file Chapter 7 recently? Once you are a year into the land contract you should be able to refinance it if the equity is there and make it your own. Do you think the home has appreciated any in the past year?

[tjmica]

We filed Chapter 7.

[SinkingFast]

That's why you're having problems. You're looking for the seller to carry 20% of the mortgage.

That is probably gonna be tough.

I know in our case, we were selling for just enough to pay off the mortgage balance and the costs to sell. We couldn't have offered to carry 20% for you.

You're gonna have to find owners with significant equity, who don't need every penny out of the property right when they sell. And that may be hard to find. Younger people need their money to move on up into bigger, more expensive houses. Older folk may need every penny for a retirement place they've picked out to purchase.

[JeepMom]

Ouch.

Try looking for another company.

[fsugirl]

My opinion--I would wait..Work hard on rebuilding credit and then try again. Then you would be able to get an 80/20 type loan which means you will get 100% financing...A lot of places here in Florida that would agree to hold a second mortgage charge outrageous interest like 12% and most of the houses are DUMPS !! JMO ! Good luck to you ! There is hope after BK..We were d/c in January of this year and closed on a brand new constuction house on June 15th. It can happen you just have to stay on top of your credit report and make sure everything is cleaned up.

[SinkingFast]

My opinion--I would wait..Work hard on rebuilding credit and then try again. Then you would be able to get an 80/20 type loan which means you will get 100% financing...A lot of places here in Florida that would agree to hold a second mortgage charge outrageous interest like 12% and most of the houses are DUMPS !! JMO ! Good luck to you ! There is hope after BK..We were d/c in January of this year and closed on a brand new constuction house on June 15th. It can happen you just have to stay on top of your credit report and make sure everything is cleaned up.

That's probably the best advice you could get right there.

Wait longer. Work on your Credit Reports. Get them all cleaned up and everything reporting correctly. Get some positive reporting tradelines going with some BK friendly Creditors. Try to save some money to bring to the table as well.

Does new Hubby have a previous BK?? If not, then get his Credit in shape and have him try for the mortgage alone. He's much more likely to get approved applying solo with only one BK in his history than you as a couple with you having 2 BK's in your past.

Don't mean to be rude. Just trying to view your situation thru a Mortgage Lender's eyes.

[MTG_BANKER_OH]

We filed Chapter 7.

You should definitley shop around you can do better then trying to get a seller to carry a 20% second mortgage, you are probably not going to find that anywhere, many people in the columbus area are just trying to get out of their homes for what they owe or with some extra cash but not fo them to hold 20%. You should find a better broker. You should be able to obtain 100% financing if you have a minimum of a 580 score.

[tjmica]

Thank you for all of your help! I really appreciate hearing that, although the loan company seems to think that we should be able to get a house no problem. But that is his job!