I want to buy a house... then make it a home..

[SunshineGal]

I texted my mortgage broker friend (who once specialized in "sub-prime" mortgages but it's a faux pas to claim that title now) after getting all excited about it yesterday. I started the convo with, "How much experience do you have with securing FHA for people in ch 13." Her reply was simply, "a lot." This gives me hope.

Excellent! And you're not kidding about the sub-prime, that industry has been decimated by the new lending laws. It's kind of sad because there really was a benefit to sub-prime for those who couldn't qualify for traditional lending.

[tobee43]

Thank you for the advice! I texted my mortgage broker friend (who once specialized in "sub-prime" mortgages but it's a faux pas to claim that title now) after getting all excited about it yesterday. I started the convo with, "How much experience do you have with securing FHA for people in ch 13." Her reply was simply, "a lot." She went on to say that she is closing a couple in a neighboring county next Tuesday.

This gives me hope.

I read all about the 203k and standard guidelines yesterday. I agree that the house would not be eligible for a standard FHA loan, but I think the 203k is feasible.

hope....you got this...in your pocket. like i said it most likely will not be easy...but either is getting the honey from the hive...

[tobee43]

Well it sure never hurts to try...and to try again and to be persistant. Even good deal homes aren't moving...and i think a bank might be more interested in your buying it than having an investor buy it. So forge ahead!!!!!

I can vouch for the fact that you don't need much actual knowledge to rebuild a house....just a willingness to learn. I built my first house when I was preggers and didn't want to live in a condo with a baby. I learned how to do a little bit of everything andbuilt 4 other homes afterward. The first home cost me about $115k and I sold it for $650k. Second was a VA repo: bought $17k and ex snaked it away from me or I would have sold it for $300k. Trying my best to keep this house so i can do my magic and sell it for a goodly amount and then downsize.

BUT, if i can't I'll be talking to the Florida poster and looking for a house with a pool!

They can't take your dreams away unless you let them........Best of luck and don't give up!!!!!!!

we r in florida with a pool...

[NowImDownInIt]

I don't want to rain on your parade and I'm NOT saying it can't be done, but tread careful. You've already been through a lot with the BK, I would hate to see you get your heart broke with the house.

There are a few issues here. One, although FHA allows current Chapter 13s, chances are, most lenders will not. Also, a 203(k) loan is filled with pittfalls. Although this loan can probably be done, it won't be an easy task. Use a very experienced loan officer who has closed loans just like yours, preferably, one who works for a direct bank that offers the guidelines you need. As for standard FHA, I don't think your property is going to make the cut. (they are very picky!)

Good luck and I'll keep my fingers crossed for you!

Thank you for the advice! I texted my mortgage broker friend (who once specialized in "sub-prime" mortgages but it's a faux pas to claim that title now) after getting all excited about it yesterday. I started the convo with, "How much experience do you have with securing FHA for people in ch 13." Her reply was simply, "a lot." She went on to say that she is closing a couple in a neighboring county next Tuesday.

This gives me hope.

I read all about the 203k and standard guidelines yesterday. I agree that the house would not be eligible for a standard FHA loan, but I think the 203k is feasible.

[CoBelle]

Well it sure never hurts to try...and to try again and to be persistant. Even good deal homes aren't moving...and i think a bank might be more interested in your buying it than having an investor buy it. So forge ahead!!!!!

I can vouch for the fact that you don't need much actual knowledge to rebuild a house....just a willingness to learn. I built my first house when I was preggers and didn't want to live in a condo with a baby. I learned how to do a little bit of everything andbuilt 4 other homes afterward. The first home cost me about $115k and I sold it for $650k. Second was a VA repo: bought $17k and ex snaked it away from me or I would have sold it for $300k. Trying my best to keep this house so i can do my magic and sell it for a goodly amount and then downsize.

BUT, if i can't I'll be talking to the Florida poster and looking for a house with a pool!

They can't take your dreams away unless you let them........Best of luck and don't give up!!!!!!!

[tobee43]

well i think we all have to give ourselves something to work towards...

we are in an economical world wind that needs to stop and move forward at some point...

some can continue to see the cup half empty and others will always see it as half full. while we all need to plan carefully and proceed cautiously through out our continued journey's we need to keep our perspectives positive and push on. we can't stop dreaming for a better future.

maybe i'm still a day dreamer...but i believe that you can accomplish most anything you put your heart into...and whether that's starting your life fresh and new with new hopes and aspirations of a better future then so be it.

you can get a mortgage and you will....maybe NOT today...but it will happen and you will have your home for your children. i know it.

[SunshineGal]

I don't want to rain on your parade and I'm NOT saying it can't be done, but tread careful. You've already been through a lot with the BK, I would hate to see you get your heart broke with the house.

There are a few issues here. One, although FHA allows current Chapter 13s, chances are, most lenders will not. Also, a 203(k) loan is filled with pittfalls. Although this loan can probably be done, it won't be an easy task. Use a very experienced loan officer who has closed loans just like yours, preferably, one who works for a direct bank that offers the guidelines you need. As for standard FHA, I don't think your property is going to make the cut. (they are very picky!)

Good luck and I'll keep my fingers crossed for you!

[NowImDownInIt]

i told you....you will do this...you're going to be the bkform's example of mortgages rec'd after bk...YES!!!!!

LOL, except it will be during the BK and not after. My plan doesn't end until 2013. I am getting more and more excited.

I just learned that:

Question 42: At what point, or LTV percentage, can the MIP be terminated?

Answer: On loans closed on or after January 1, 2001, MIP will be terminated for mortgages with a term more than 15 years, provided the MIP has been paid for at least 5 years and have an LTV less than or equal to 78%; or for mortgages with a term 15 years and less serviced, in which the LTV ratios are 90% and greater and the LTV ratio is less than or equal to 78% and the MIP has been paid for at least 5 years. Mortgages with a term 15 years and less serviced and with a LTV ratio of 89.99% and less will not be charged annual MIP.

So with the amount of instant equity this house has and the fact that I will be securing a 15 year mortgage, FHA doesn't require mortgage insurance premiums! Yay!

[tobee43]

I spoke to my mortgage broker (from my 2006 home purchase) and was informed that I can, in fact, apply for the loan without my husband on the mortgage. I actually qualify now according to her. My scores are within range and my payment history is good. The payment might actually be lower than my current rent, even with PMI. We would lowball the first offer, of course. The house appraised in 2009 for $123,713, this was the value post the Ike damage. So the proposed equity will be quite high.

The house would pass the home inspection (performed really as an FHA appraisal) if they were to supply a stove and demo the back portico. The dry wall doesn't affect safety, soundness, or security. I called the Realtor and was informed that the house is structurally sound, including the foundation. There are no termites.

http://www.hud.gov/offices/hsg/sfh/ref/sfhp1-22.cfm

The neighborhood is good, very established, but not "cookie-cutter" new construction, which I hate. The neighborhood is 100x better than the one I'm in, as is the school district. This is actually one of the two local neighborhoods in which I am considering.

I told her that the home is in need of completion and she did bring up the inspection, but doesn't think it will pose an issue. If it does she said we can explore the 203(k) loan as an option.

http://www.hud.gov/offices/hsg/sfh/203k/faqs203k.cfm#BOR

It has good bones. I think if this doesn't turn out in our favor I will probably continue searching and planning to purchase a home within the next year.

P.S. - I am not even remotely interested in having a pool. I want a home with good bones, so we can give it a facelift.

i told you....you will do this...you're going to be the bkform's example of mortgages rec'd after bk...YES!!!!!

[NowImDownInIt]

Make sure to triple-check that upper balcony/porch. The wood looks to be in poor shape, and could pose a problem for the entire upper floor.

Good luck,

-dmc

Thank you for all your advice. The patio/balcony you speak of is actually an enclosed sunroom. The windows are just covered with storm/hurricane shutters. I think that the hardwood in there is very dirty and have damage from the storm. I have an appointment to view it tomorrow and I am very excited.

The windows will probably move me into a 203(k) loan, actually.

[NowImDownInIt]

I spoke to my mortgage broker (from my 2006 home purchase) and was informed that I can, in fact, apply for the loan without my husband on the mortgage. I actually qualify now according to her. My scores are within range and my payment history is good. The payment might actually be lower than my current rent, even with PMI. We would lowball the first offer, of course. The house appraised in 2009 for $123,713, this was the value post the Ike damage. So the proposed equity will be quite high.

The house would pass the home inspection (performed really as an FHA appraisal) if they were to supply a stove and demo the back portico. The dry wall doesn't affect safety, soundness, or security. I called the Realtor and was informed that the house is structurally sound, including the foundation. There are no termites.

http://www.hud.gov/offices/hsg/sfh/ref/sfhp1-22.cfm

The neighborhood is good, very established, but not "cookie-cutter" new construction, which I hate. The neighborhood is 100x better than the one I'm in, as is the school district. This is actually one of the two local neighborhoods in which I am considering.

I told her that the home is in need of completion and she did bring up the inspection, but doesn't think it will pose an issue. If it does she said we can explore the 203(k) loan as an option.

http://www.hud.gov/offices/hsg/sfh/203k/faqs203k.cfm#BOR

It has good bones. I think if this doesn't turn out in our favor I will probably continue searching and planning to purchase a home within the next year.

P.S. - I am not even remotely interested in having a pool. I want a home with good bones, so we can give it a facelift.

[tobee43]

If you are really interested, I would pursue it. I would also throw extreme low-ball offers, if you get a line on financing.

A house like that might sell for half (or less) of what is listed price. Banks are funny creatures when it comes to selling homes, especially fixer-uppers. Keep in mind that the level of work required on that particular home will rule out almost all normal financing. Most FHA, Fannie, etc, must pass inspection to be approved, and that house won't pass.

My wife sells a LOT of lower priced homes, as an agent, and some of the deals happening right now boggle my mind. Homes that were sold for 300k at the height of the boom are selling for 70k now. And they are nice places.

On the low end of the spectrum, you can get, right now: A livable place, minimal repairs, 2-3 bedroom, 2 bath, for 30-40k. A little more, and you get a pool. And in decent neighborhoods. Of course, this is the blighted housing landscape of Florida, but it's great for buyers.

Here, the upper end is in trouble. Anything over about 3k square feet takes a very long time to sell and brings less money than the smaller homes, on a sq foot basis. We think this is because of the outsized tax, utility, and maintenance bills on these homes. And insurance. Many people have reset their expectations and no longer want or even desire the McMansions of years past.

For you, in TX, though, I would say keep pursuing until you have what you want. But do so with the price more in mind than the exact home. If you want a fixer-upper, there will be plenty whenever you have it all together, in terms of financing. Try not to get emotionally hung up on a particular home. There are so many, you should really look at a few dozen in person before even thinking about favorites.

All that said, I could envision a very stately and comfortable transformation in the one you linked. Beautiful in many ways. Lovely fireplace. Make sure to triple-check that upper balcony/porch. The wood looks to be in poor shape, and could pose a problem for the entire upper floor.

Good luck,

-dmc

dmc...LOVE your name...i thinkl!!! can your wife refer her to a texas realitor ....or even handle an out of state sale..

shoot we need to start a networking process here to help each other get back on their feet!!

we didn't find the foreclosure buying experience in florida that easy of a task. glad to hear things are starting to finally move!

[DeadManCrawling]

If you are really interested, I would pursue it. I would also throw extreme low-ball offers, if you get a line on financing.

A house like that might sell for half (or less) of what is listed price. Banks are funny creatures when it comes to selling homes, especially fixer-uppers. Keep in mind that the level of work required on that particular home will rule out almost all normal financing. Most FHA, Fannie, etc, must pass inspection to be approved, and that house won't pass.

My wife sells a LOT of lower priced homes, as an agent, and some of the deals happening right now boggle my mind. Homes that were sold for 300k at the height of the boom are selling for 70k now. And they are nice places.

On the low end of the spectrum, you can get, right now: A livable place, minimal repairs, 2-3 bedroom, 2 bath, for 30-40k. A little more, and you get a pool. And in decent neighborhoods. Of course, this is the blighted housing landscape of Florida, but it's great for buyers.

Here, the upper end is in trouble. Anything over about 3k square feet takes a very long time to sell and brings less money than the smaller homes, on a sq foot basis. We think this is because of the outsized tax, utility, and maintenance bills on these homes. And insurance. Many people have reset their expectations and no longer want or even desire the McMansions of years past.

For you, in TX, though, I would say keep pursuing until you have what you want. But do so with the price more in mind than the exact home. If you want a fixer-upper, there will be plenty whenever you have it all together, in terms of financing. Try not to get emotionally hung up on a particular home. There are so many, you should really look at a few dozen in person before even thinking about favorites.

All that said, I could envision a very stately and comfortable transformation in the one you linked. Beautiful in many ways. Lovely fireplace. Make sure to triple-check that upper balcony/porch. The wood looks to be in poor shape, and could pose a problem for the entire upper floor.

Good luck,

-dmc

[tobee43]

I am really, REALLY excited now. Am going to update when I get home.

it's hard to get you going that's for sure...come on...now really...what do you have to lose...absolutely nothing but everything to gain.

what the heck are the banks going to do exactly with all these empty houses...somethings going to give...and i just want YOU to be one of the first in line when they start handing it out...

[NowImDownInIt]

I am really, REALLY excited now. Am going to update when I get home.