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Anyone have any experiences buying in the sf market? My wife and I have just scratched the market by hitting a few open houses and it seems like a war zone of buying frenzy. A lot of the places we looked at weren't even any nicer than the place we are currently renting and we had to wait around to ask a few questions to the realtor. The other thing is that we may only have about 10-15% of a down payment available for a condo/tic out here. I'm not sure if we're just going to have to hold out for the 20% down payment or if people are accepting fha style loans in a market like this.
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Feb 19, 2013 11:46
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CitizenKain, I found rental houses in your area, just type in "house" in the "search for" box and it will just show you the houses. Example: http://helena.craigslist.org/apa/3594579701.html Also check out Zillow and filter it by "houses for rent". It's actually been my experience that houses are cheaper to rent than apartments. They don't add in a bunch of bullshit maintenance/pool/gym fees in your rent. My landlord pays water and trash, and my roommate and I split the bills on an ~800 square foot house. It comes out to about $400 a month each. Most of my friends in apartments are paying $400-450 a month before utilities! razz fucked around with this message at 13:46 on Feb 19, 2013 |
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Feb 19, 2013 13:43
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So my wife and I are just getting in to the market to buy our first house in the DC area. I'm a fed, so I have the option to borrow from my TSP (401k analogue) tax-free to buy a house, but I have to repay the loan with interest, but the interest goes to my TSP account as opposed to a bank. Anyone have experience with this?
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Feb 19, 2013 14:26
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Also, is there any way to get FHA to work for me with excellent credit and 20% down, or should I just go conventional?
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Feb 19, 2013 16:05
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Baruch Obamawitz posted:Also, is there any way to get FHA to work for me with excellent credit and 20% down, or should I just go conventional? My husband's a fed, too.  Our lender said that we qualify for FHA, and our situation is that his credit is all right, mine is good, and we have 10% of our goal price saved up. Why wouldn't FHA work with you? Also, I know my husband used his TSP to pay off his car, but I don't know if you can use that for a house.
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Feb 19, 2013 16:47
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CitizenKain posted:So far this doesn't seem like the dumbest thing I've ever done, but I've been wrong in the past. Any thoughts? You said you're going to see what you qualify for and go from there, but that is rear end backwards. Start by figuring out what you can afford and are willing to pay for. If you do that sensibly you will then easily qualify for the loan. If you want some specific comments on the finances, mention your income and monthly expenses, and the price range you're thinking about. Your cash pile is kind of small yet, and don't forget to budget for maintenance and repair in addition to insurance and taxes. Also, the good point was made that all the reasons you gave for buying can be actually achieved in a rental too. The counterpoint is that some people (me) like owning their house even though keeping it up adds extra cost and pain in the rear end. Just be aware :>
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Feb 19, 2013 16:50
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razz posted:CitizenKain, I found rental houses in your area, just type in "house" in the "search for" box and it will just show you the houses. I didn't say there weren't any, there just aren't any around where I want to live or for prices I'd pay. The downtown area here is generally old homes, small lots and are generally not great. slap me silly posted:You said you're going to see what you qualify for and go from there, but that is rear end backwards. Start by figuring out what you can afford and are willing to pay for. If you do that sensibly you will then easily qualify for the loan. If you want some specific comments on the finances, mention your income and monthly expenses, and the price range you're thinking about. Your cash pile is kind of small yet, and don't forget to budget for maintenance and repair in addition to insurance and taxes. My thinking was to keep housing expenses under 1/3 of monthly income, with some flex room if something really good comes up. I guess my reasoning to seeing what I qualify for would be to make searching for places easier, as I'd be able to narrow my money range down. I know what I can afford per month in expenses, but I don't know how that translates into what I can look for in a house. CitizenKain fucked around with this message at 17:02 on Feb 19, 2013 |
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Feb 19, 2013 16:52
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Betazoid posted:My husband's a fed, too. More that is there any way I'd be saving money through FHA, or would it be cheaper to go conventional quote:Also, I know my husband used his TSP to pay off his car, but I don't know if you can use that for a house. It's a 15 year term instead of a 5 year term for residential loans vs. general purpose.
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Feb 19, 2013 16:56
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Baruch Obamawitz posted:Also, is there any way to get FHA to work for me with excellent credit and 20% down, or should I just go conventional? I just found out that FHA loans are sometimes assumable! I personally don't think the unknown future benefit of a low-rate assumable loan is going to be worth the present extra cost of the FHA insurance, but maybe that's just me.
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Feb 19, 2013 17:01
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Baruch Obamawitz posted:So my wife and I are just getting in to the market to buy our first house in the DC area. There are some reasons TSP/401k retirement account loans are generally a bad idea: 1) If you leave your employer (e.g., the Federal government), you must repay the loan in full within 90 days or the remaining balance is treated as a taxable distribution - you will owe ordinary income tax plus a 10% distribution penalty. Ergo, if you take out this loan and then decide to enter private practice, I hope you have the cash to pay it off immediately or you will get nailed with a huge tax bill. 2) The interest you are paying yourself does go into the fund, but keep in mind that you are paying off the loan with after-tax money, whereas the original balance was before-tax money. When you go to withdraw the money from your TSP in retirement, you will have to pay tax again on the withdrawal. 3) Obviously you'll also be missing out on whatever gains the market makes during the time you are repaying the loan. As an alternative, the IRS will allow you to make a temporary withdrawal from any of your retirement accounts, as long as you replace the money within 60 days. One option if you're a little short of 20% (e.g., you only have 15% down) is to withdraw the additional 5% from your retirement account to make up the 20% down, close on the first loan with 20% down to obtain the best possible rate, and then open a home equity loan within the 60 day period to tap the 5% in equity. You'll pay a higher interest rate on the equity loan, so you'll want to pay that down aggressively. You can then use the cash you receive from the home equity loan to pay back the retirement account within the 60 day window, with the end result of a first mortgage for 15%, a home equity loan for 5%, and no negative implications to your retirement account if you leave government service, and any gains on your retirement account will be intact other than whatever you miss out on for the 60 day period. NJ Deac fucked around with this message at 18:12 on Feb 19, 2013 |
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Feb 19, 2013 18:07
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I think there's probably some survivorship bias in the old construction vs new construction debate. Older construction isn't inherently more structurally sound / overbuilt, just most of the lovely examples collapsed or burned down at some point in the last 70+ years.
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Feb 19, 2013 18:10
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NJ Deac posted:One option if you're a little short of 20% (e.g., you only have 15% down) is to withdraw the additional 5% from your retirement account to make up the 20% down, close on the first loan with 20% down to obtain the best possible rate, and then open a home equity loan within the 60 day period to tap the 5% in equity. Who will even touch a home equity loan that takes you above 80% LTV?
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Feb 19, 2013 18:46
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slap me silly posted:Who will even touch a home equity loan that takes you above 80% LTV? We're in the process of shopping for a home equity loan since it's easier than getting a jumbo even with a 20% downpayment, and several of the local banks and credit unions around here are offering up to 85% or 90% LTV on equity loans. Generally it seems that the interest rates are a little higher (maybe an extra 1% for a high LTV equity loan), but if it means the difference in getting a discount on your first mortgage and you pay off the equity loan quickly, it generally works out in your favor if you're pretty close to 20% down but need a little help to get over the hump.
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Feb 19, 2013 19:33
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Cool, learn something every day. My bank won't touch anything over 70% as far as I can tell.
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Feb 19, 2013 22:25
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slap me silly posted:I just found out that FHA loans are sometimes assumable! I personally don't think the unknown future benefit of a low-rate assumable loan is going to be worth the present extra cost of the FHA insurance, but maybe that's just me. If you have the downpayment and you have the credit, go conventional. Why pay a large upfront mortgage insurance fee and a monthly mortgage insurance premium for no gain other than an assumable feature that you likely won't use?
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Feb 20, 2013 07:09
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So guys, I just got an offer accepted on a place, now I need get some financing. Do people find brokers or banks better? If I get rejected at one bank, what are my chances of getting a mortgage at another one? I'd love to hear some people's personal experience.
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Feb 20, 2013 15:18
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Zack_Gochuck posted:So guys, I just got an offer accepted on a place, now I need get some financing. Do people find brokers or banks better? If I get rejected at one bank, what are my chances of getting a mortgage at another one? I'd love to hear some people's personal experience. You want a broker or these guys: aimloan.com Getting rejected outright at one bank is bad news. You'll likely have trouble at other banks, too - not because they'll see the rejection and hold that against you, but because they all use similar underwriting standards. Did you get pre-approval or pre-qualification before you made the offer? At this stage of the game, you should have a very good idea of what you can get approved for and just shop for cost/rate.
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Feb 20, 2013 16:39
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Zack_Gochuck posted:So guys, I just got an offer accepted on a place, now I need get some financing. Do people find brokers or banks better? If I get rejected at one bank, what are my chances of getting a mortgage at another one? I'd love to hear some people's personal experience. Yeahm SlapActionJackson's right. Virtually all mortgages are sold into the secondary market and they have to comply with Fannie Mae/Fredie Mac guidelines. When banks hold it in portfolio they charge more and usually do variable rates. Did you have financing lined up and something fell through, or did you put an offer in without financing lined up? If it's the former, usually offers are written in such a way that if finacing falls through you get any deposits back. If it's the latter, not sure what to tell you.
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Feb 20, 2013 19:10
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Aren't you supposed to get pre-approved before even making an offer??
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Feb 20, 2013 19:34
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It's kind of common to do that to give the seller some assurance you can pay, but there's no rule about it.
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Feb 20, 2013 19:48
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Zeta Taskforce posted:Yeahm SlapActionJackson's right. Virtually all mortgages are sold into the secondary market and they have to comply with Fannie Mae/Fredie Mac guidelines. When banks hold it in portfolio they charge more and usually do variable rates.
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Feb 20, 2013 20:24
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three posted:I'm genuinely curious what happens if you make an offer but can't pay for it. If you can't pay for it, and don't have a financing contingency clause to fall back on, you lose your earnest money.
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Feb 20, 2013 20:40
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SlapActionJackson posted:If you can't pay for it, and don't have a financing contingency clause to fall back on, you lose your earnest money. I was hoping Zack_Gochuck was going to get sued for the price of his offer. 
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Feb 20, 2013 20:42
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If the sellers can show damages in excess of the earnest money amount, he might be liable for that, but buyers generally can't be sued for specific performance, just the damages resulting from their breach of the contract.
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Feb 20, 2013 21:17
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I haven't applied for a mortgage at all yet, but I have a meeting with a broker tomorrow morning. I just wanted to know what happened if I didn't get approved, basically. Wish me luck.
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Feb 20, 2013 22:35
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SlapActionJackson posted:You want a broker or these guys: aimloan.com gently caress aimloan.com, they don't service Hawaii! 
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Feb 20, 2013 23:55
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SlapActionJackson posted:You want a broker or these guys: aimloan.com I've never once looked at a denial at one bank as a reason to deny another. Banks all use the same basic guidelines as written by FHA, VA, USDA, Fannie Mae, and Freddie Mac. Each bank then has 'overlays' or additional guidelines that go above and beyond that. For example, FHA allows a purchase loan for anyone down to 580 credit scores. Regions Bank increases that limit to 620. Bank of America requires 640. Banks adjust their guidelines depending on large scale trends like people with credit scores below 620 having nearly triple the payment defaults as people above 620. Brokers use the exact same guidelines as banks because they are a middle man that is underwriting their loans to the banks guidelines so they can quickly sell or place the loan with that bank. The benefit to using brokers is that they may be able to place the loan with several different banks and can help you navigate. The downside is higher costs and rates. This is especially true since brokers are blocked from using nearly every major bank. If you're wanting the most options, I'd advise that you get a quote from 3 sources. Get a quote from a major bank like Wells Fargo or Chase. Get one from a broker. Get a quote from a credit union. Major banks can offer amazing programs for first time homebuyers like down payment assistance, bond programs, or renovation purchase loans. Brokers can offer guidance. Credit Unions can offer great customer service and a very specific local knowledge. If you want me to take a look at things, let me know and Ill give you my contact information.
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Feb 21, 2013 06:29
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Randomly posted:I've never once looked at a denial at one bank as a reason to deny another. Pretty much this, outside of being denied due to material misrepresentation (lying) I don't really give a drat whether you were denied by another bank or not - if you meet our guidelines we'll approve it. Also, unless you actually tell your underwriter we're unlikely to know about the previous denial by another lender. I can get a bit of info from your credit report and some industry tools that share certain limited information, but at most I might know that you applied with another bank at some point.
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Feb 21, 2013 08:20
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Tricky Ed posted:All of the above is true, simultaneously. Home ownership is awesome. You know, getting fleeced on the rent on this apartment is pretty lame, but this post and all the prior advice about my (I now realize not so great) financial situation has convinced me not to bother with home buying, at least for a long time! So... thanks?  I told my loan officer and realtor I was considering dropping the subject yesterday. Realtor hasn't responded yet but the loan officer suggested I'd only be saving about $50/mo per $1000 spent on down payment. I believe her, but that really rather misses the point! Such nice people, too, it's hard to remember that they're in it for a profit. 
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Feb 22, 2013 04:12
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Heh, the loan officer and realtor have NO reason to support you in that decision  Plus you understand your financial situation and personal priorities far better than they do.
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Feb 22, 2013 06:36
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Are listings on sites like zillow and realtor to be believed? I called a realtor in the town I would like to buy a house in and told her what I wanted. She sent me ~10 houses that aren't where I want to buy and are more money than I expected. EDIT: Also, if anyone has advice for people who buy their house without a mortgage I would like to hear it. I know the banks demand things but I won't have that. FortifiedTumor fucked around with this message at 02:40 on Feb 23, 2013 |
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Feb 23, 2013 02:27
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FortifiedTumor posted:Are listings on sites like zillow and realtor to be believed? I called a realtor in the town I would like to buy a house in and told her what I wanted. The all pretty much pull from the same MLS backend.
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Feb 23, 2013 02:48
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FortifiedTumor posted:Are listings on sites like zillow and realtor to be believed? I called a realtor in the town I would like to buy a house in and told her what I wanted. How do you plan to buy a house without a mortgage? All cash?
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Feb 23, 2013 02:53
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FCKGW posted:The all pretty much pull from the same MLS backend. Does that mean that I can purchase places that are listed there? I just ask as the realtor sent houses that are more expensive in places I don't want to live. I'm wondering if I'm being naive. three posted:How do you plan to buy a house without a mortgage? All cash? Yes. I hope it won't actually be 'cash' but something like that.
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Feb 23, 2013 02:57
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FortifiedTumor posted:Does that mean that I can purchase places that are listed there? I just ask as the realtor sent houses that are more expensive in places I don't want to live. I'm wondering if I'm being naive. Realtors live on commission. You can employ seller's agent, they'll be only happy to keep the whole 5%. At the very least you need a real estate lawyer, they do all the title work. What's "like cash", are you bartering for a house in gold bullion? iv46vi fucked around with this message at 04:31 on Feb 23, 2013 |
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Feb 23, 2013 04:28
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In my (limited) experience, Zillow is off by 10-30% for specific houses but within 5-10% at the neighborhood or zip code level (depending on size of area). Regarding the realtor, you might have a lovely one or you might have unlikely ideas about what you can do, hard to tell which from here. I interviewed a couple of realtors before I bought and one said "Oh, I know a bunch of good possibilities for you in <area I wanted nothing to do with>". The next one said "sure, let's look here, here, here" that matched my interest so I hired her. E: also your options are pretty much cash, mortgage loan, or "freak out the seller". Or "paper clip" vvvvvvvv slap me silly fucked around with this message at 05:06 on Feb 23, 2013 |
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Feb 23, 2013 04:34
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I paid for my house by trading a paper clip for a pen and then things just kind of snowballed from there.
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Feb 23, 2013 04:48
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Paying cash just means you don't need to gently caress around with an appraisal since the house is worth exactly what you pay for it. You still need an inspection and may or may not need to make a contingency offer if you need to sell a place to pay for the new one. You still want title insurance, you still pay closing costs, you just ignore the loan part.
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Feb 23, 2013 04:57
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You don't have to convince a lender that the property is worth what you are paying, but only a fool buys a house without getting an appraisal. What's $400 to $600, compared to how much money you're risking on this home? Some agents operate under the belief that their clients will pay more than they initially say is their top end, especially if they prequalify for more. Their belief is not entirely unfounded. Tell your agent you will not consider one red cent over $x and that you do not want listings from y area. If they continue to waste your time, dump them. You don't have to tolerate that kind of poo poo at all. You can't avoid paying taxes on you home by trading for it with your comic book collection.
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Feb 24, 2013 09:09
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Leperflesh posted:You don't have to convince a lender that the property is worth what you are paying, but only a fool buys a house without getting an appraisal. What's $400 to $600, compared to how much money you're risking on this home? What if you buy a house with BitCoins?
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Feb 25, 2013 00:34
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