Wednesday, March 4, 2009
Oh, give me a home...
As most of you know, Jimmy and I have been house hunting for a few years now. We thought we had found the perfect home; it was owned by a friend of the family, and he was going to sell it to us, rent to own.
The long and the short of it is, after he saw just how much money he'd have to put into it, he decided not to sell, but to rent. Since renting was what we are trying to get away from, and the house is in the city, we decided to continue our search.
I have some info for you all about what kins of loans are out there...and even how to avoid some of the pitfalls of buying.
The main thing I want to mention here, is don't get your hopes up. By this, I DO NOT mean to be pessimistic, what I DO mean is don't expect...see, evaluate, talk; but do not have preconceived expectations.
I don't care if your buying from your grandma!Do not have preconceived expectations.
And...always READ your contract before you sign. I don't care how long it takes you, and, if the person you are signing with hurries you, STOP! ask WHY they want you to sign away your life without reading everything. If they still rush you...LEAVE WITHOUT SIGNING!
I don't care if the house is one in a million. If they want to rush you, there's a reason they are not disclosing to you.
If they get a phone call and say they have an emergency? Same thing! Don't5 sign. Simply say" OK, we;ll leave this for another day, when I have time to go over the entire contract. DO NOT let them convince you to sign now and read later...remember, this is your life at stake. Once you sign that contract, your in it for the long haul...no turning back. Even if you took them to court, the judge would tell you there is nothing he/she can do...
Now, here are some ways you can buy a house:
RENT TO OWN: This is ideal for people that work from home, self-employed or single parents who are recently divorced. The great thing about it is that if the value of the home increases during the period of repayment, you won't pay more as the price is fixed the day you move in. It offers buyers and sellers the flexibility of a lease, but the feeling of having completed a sale and purchased a home.
Traditionally, FHA loans have helped military families who return from war, the elderly, handicapped, or lower-income families, but really, anyone can get an FHA loan - they are not just for first-time home buyers. Rates for FHA loans are set by Ginnie Mae securities; those who have been in bankruptcy as recently as two years ago may be eligible for a full loan. A loan officer or underwriter will require and explanation from you regarding the financial situation that damaged your credit and often a statement explaining that the situation is resolved and you are now prepared to move forward.
VA Loans are typically 15 year or 30 year loans. The maximum VA Loan term is 30 years and 32 days. VA loans do not have a cap on the amount of money that can be borrowed. The lender ultimately decides on the amount that they will lend. VA loans offer up to 100% financing�on the value of a home.
VA loans are restricted to individuals qualified by military service or other entitlements. There are limits to the size of FHA/VA loans, but they're generous enough to handle moderately priced homes anywhere in the country There are no mortgage insurance premiums on VA loans, and assumable mortgages are permitted. (Assumable mortgages are such that they can be transferred from one owner to another owner without any alteration in the terms of the loan.) Eligible areas are designated by the VA as housing credit shortage areas and are generally rural areas and small cities and towns not near metropolitan or commuting areas of large cities.
I hope this has helped even one person understand some of the Ins and outs of buying a home. Today's economy is bad, but it's also good if you are wanting a home of your own. I personally can not waite until we find the right home for us...but for now, back to the drawing board!
Here are a few resources you might want to check out:
My Miracle Loans
Free Government Grants And Loans
The Do-It-Yourself Loan Modification Kit