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Ok,so that's the scoop. I have no savings,because I spent $8000 paying off debt,and the car broke down,so I got it fixed,plus leased a new one.
Do you really need savings to qualify for a mortgage?
I really do think I'm a good candidate for a mortgage.
Yearly income last yr 110,000,but yrears prior 2007 to 2011 it was 80,000 to 99,000.
I try to stay below a certain amount. Cedit score 670.
Monthly income net $6600
Rent is 1500.
Car payment:510
Car insurance:424.
Food:800 monthly.
Irs:300 monthly(now you know why I stay under a certain amount in earnings)
I still owe 11,000 to them.
Student loan:$50
Credit cards:75 monthly.
Gas and tolls:$600 monthly
No 401k,no Ira.
Looking at short sale homes 63,000 to 90,000.
How do I find a no money down mortgage?
Will they also want to see savings,401k,etc?
There are just three type of no down payment loans currently available that I know of.
They are
US Dept. of Agriculture Rural Development loans- which are not necessarily loaned on rural properties only
VA loans- but you've got to be a veteran
Navy Federal Credit Union may still have a 0 down loan- but again- you have to be a veteran
However, you still need money to close. You could try to have the seller pay some points/closing costs but that may or may not work for all of the money needed to close.
Of concern is the money owed to the IRS. What is that about? Doesn't look good. No, no need to discuss it on a public forum, it's your private business , but if you've got back taxes or something, how does that make you a good mortgage risk?
Yes, lenders would like to see some money in the bank. You're buying a house and houses always have something going on with them. They want to know you can handle those unexpected expenses.
Perhaps it would be best if you waited a couple of years and tried to save several thousand, then try for a mortgage down the road. HUD/FHA loans are just over 3 % down. You should also speak to a couple of local banks or mortgage brokers and ask them directly so they can look at your finances in depth and give you a better idea of where you stand than an internet forum-
One other thing. You could also check with the city/ town/ area where you live. Sometimes various municipalities have programs that help with down payments/ closing costs, property rehab, etc. if you buy in a targeted area.
IMP if you have no money for downpayment-closing, you should save first and then buy a house
WOW, 100K salary and no savings...
Wow,I live in Nj.
No need to be snarky. I'm a single mom of 3. I'm doing it all by myself.
I pay 424 for car insurance,something people in other states wouldn't understand.
Also, rent of 1500 is actually at the extreme LOW end for Jersey. I also live in a bad area. I am not living in mansion. What a greta neighborhood in Nj? You would have to shell out $3000 per month for a 3 bedroom apt or home.
Irs debts don't pop up on credit reports.
What happened? I didn't file for 3 years. The debt is actually paid,but I'm paying late fees and penalties.
Forgot to mention...anything I did saved I used to pay down debt.
Wow,I live in Nj.
No need to be snarky. I'm a single mom of 3. I'm doing it all by myself.
I pay 424 for car insurance,something people in other states wouldn't understand.
Also, rent of 1500 is actually at the extreme LOW end for Jersey. I also live in a bad area. I am not living in mansion. What a greta neighborhood in Nj? You would have to shell out $3000 per month for a 3 bedroom apt or home.
Irs debts don't pop up on credit reports.
What happened? I didn't file for 3 years. The debt is actually paid,but I'm paying late fees and penalties.
Forgot to mention...anything I did saved I used to pay down debt.
And now, single mother of 3, tell me why do you want to buy a house at all???
I doubt you will get a nice house in good neighborhood for homes 63,000 to 90,000 in your "Nj"
Besides that, try to look at the whole picture - factor other expenses like taxes + HOA fee + home insurance + utilities + possible $$ for repairs related to your new house - AC, roof, whatever... In case something will brake you will be responsible for fixing it or paying for new.
I am not saying you shouldn't buy the house, I am saying you need to consider all expenses and maybe wait for year or so so you can save something on downpayment and closing...
I witnessed people using gov. programs and getting houses with no money down and they all ended up loosing their houses sooner or later... they had nothing to lose opposite to people who put anything down... They were like "I don't have money now, but I think it make more sense to live in my own house" and then boom, home insurance and taxes hit them hard
And now, single mother of 3, tell me why do you want to buy a house at all???
I doubt you will get a nice house in good neighborhood for homes 63,000 to 90,000 in your "Nj"
Besides that, try to look at the whole picture - factor other expenses like taxes + HOA fee + home insurance + utilities + possible $$ for repairs related to your new house - AC, roof, whatever... In case something will brake you will be responsible for fixing it or paying for new.
I am not saying you shouldn't buy the house, I am saying you need to consider all expenses and maybe wait for year or so so you can save something on downpayment and closing...
I witnessed people using gov. programs and getting houses with no money down and they all ended up loosing their houses sooner or later... they had nothing to lose opposite to people who put anything down... They were like "I don't have money now, but I think it make more sense to live in my own house" and then boom, home insurance and taxes hit them hard
Why wouldn't I want a home? I'm looking at short sales in that price range of 63,000 to 90,000.
Its an investment, just like a 401k or stocks.
In this area,its cheaper to buy a home rather than rent.
According to most on here,housing prices and interest rates are going up.
So the perfect time to buy is now. Otherwise,home prices might get so high I can't afford them(again). Happened to me during 2005 to 2008.
Why do you want to buy a home? That's a rather silly question.
Besides,there are no goverment programs that help with down payments.
Anyway,Bank of America(I've been with them 10 years) told me I only need $7000.
Anyway,Bank of America(I've been with them 10 years) told me I only need $7000.
So, BOA wants $7000 you don't have, right?
Based on the purchase price between 63K and 90K, right?
With today's market it might be a great time to buy, but it might be not a good time for you.
Anyways, try to purchase short sale house first... Look at few and consider spending some $$ to make some houses liveble first (it's more $) and by the time short sale will be approved, you might be able to save some $ on downpayment.
Something else I want to mention. You said rent is more expensive in your area. My guess investors are buying these 63K-90K houses for cash, so you have 0 chances to buy anything in liveble condition at all because for every offer you'll make there will be 10 investors with cash and guess who will be the winner... That's what we are witnessing in our area for over a year now, for any house listed under 150K. Lenders are taking cash, so the buyer with the mortgage it's not their first choice.
It doesn't sound like the lack of savings is as much an issue as the negative net worth. In addition to the down payment and closing costs, you need to have reserves. You're further away from buying than you think.
One other observation is your transportation costs are over 20% of your net income. That is a huge problem. $500/month lease says "luxury car" and $400/mo insurance says "luxury car kept in a bad neighborhood". Maybe look for an apartment closer to a train line?
It doesn't sound like the lack of savings is as much an issue as the negative net worth. In addition to the down payment and closing costs, you need to have reserves. You're further away from buying than you think.
One other observation is your transportation costs are over 20% of your net income. That is a huge problem. $500/month lease says "luxury car" and $400/mo insurance says "luxury car kept in a bad neighborhood". Maybe look for an apartment closer to a train line?
500 a month isn't leasing a luxury car,not around here. Unless you consider a Nissan a luxury car. Also,424 is normal for Jersey. I'm insuring 2 cars,one full coverage and one liability only.
My sister didn't have reserves when she bought her home.
The line of work I do,a car is a must. No way around it.
I can save 7000 within 2 months. Just gotta work overtime.
It is flat out impossible to "get ahead"'when all your income is being spent. The decision to lease a car is rarely a good one and when the payment and insurance are such a huge portion of your income it really puts you behind. The amount the OP is paying in rent suggests that if they could somehow cut down expenses even for a little while to save up at least 3-5% of purchase price they could be in a position to be looking at a fairly priced home quickly.
As it is now I would strongly recommend getting a handle on your finances especially if you are considering a shortsale or foreclosure which may need repairs / updating.
The differnce between a piece of real estate that is an investment and one that is a "money pit"'is sometimes the state of purchaser's finances -- being saavy and having the ability to wisely / cheaply finance some value adding repairs / updates...
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