Home Buying in 33173>Question Details

Rose Marie, Home Buyer in 33173

I am retired and my combined income is under $50,000. My house is fully paid and it is worth now less than $200,000. My friends tel lme I will not

Asked by Rose Marie, 33173 Tue Sep 8, 2009

get a mortgage because I am not working. I am planning to place my house for sale as soon as I buy one. I have about $60,000 for deposit. I do not have utstandin gdebts ahd have excellent credit. Is there hope for me?

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Irina Karan’s answer
Unless you are working, have a large pension and returns on stock portfolio, or getting passive income from your real estate properties, for more than 2 years, at certain age you could get a reverse mortgage on your current property.

It will not be for the full 200,000, but at about 75%, based on guidelines of the lender.
There are rules about how soon you can pay it off (once you sell).
You'll be paid a certain amount monthly, out of your equity, in reverse mortgage.

You can also buy a property cash with proceeds from the sale of your house.

Things are possible, you have to pick the right professional to work with you.

Hope this helps and best of luck,

Irina Karan
Beachfront Realty, Inc.
IrinaKaran@gmail.com
0 votes Thank Flag Link Wed Sep 25, 2013
FHA will let you qualify up to 35% of your gross monthly income. If your making 50,000 per year /12= 4166x.35= 1458 piti. FHA has many advantages that only come with an FHA home loan.

or first time home buyers and other borrowers, the FHA home loans can have key advantages:
Easy Qualification - The FHA loan insures lenders against loss for loans made to properly qualified FHA home loan borrowers. So you're likely to find FHA mortgage loans with terms that make it easier for you to qualify.

Minimal Downpayment Requirements - FHA mortgages can work with as little as 3% down and those funds can come from a family member, charity, or your employer. Although the FHA loan does not have a zero down mortgage option yet, you will find that your 1st Continental Mortgage loan officer can point you to many Downpayment assistance programs that work well with Florida FHA home loans.

Less than A-1 Credit is Okay - The Florida FHA home loan program exists to expand the pool of home buyers. Even borrowers with prior bankruptcies or mortgage lates get approved every day for FHA mortgages to buy or Refinance homes in Hillsborough County or any of the other Florida counties we serve. The FHA loan program uses credit quality, not credit score!

Lower Cost Over the Life of the Loan - The Florida FHA home loan rates are extraordinarily competitive. FHA's lower risk to the lender means a better rate for the borrower.

Safeguards for Borrowers Who Get Behind - The Florida FHA loan mortgages also allow the lender more options in helping borrowers who fall behind keep their homes are get current again: special forbearance, workouts, even free mortgage counseling. Further, HUD can allow the lender to take past due payments and move them to the end of the loan and in some instance will actually pay your past due payments for you. Options to save your home you'll never get from a conventional loan! In an uncertain world, this is another excellent reason for you to get an FHA mortgage.

Options for Manufactured Housing - Under certain conditions, you can even finance a Mobile Home or manufactured home using a Florida FHA mortgage loan. Call 1-800-570-0448 to get pre-approved for a Florida FHA loan for manufactured housing or just use our quick application to learn more!

FHA Loans Are Fully Assumable - When you are ready to sell your home, you can offer buyers FHA financing! All FHA loans can be assumed by qualified buyers.

These are just seven of the many good reasons to apply for an FHA mortgage. Call 1-800-570-0448 to speak with a friendly Florida FHA loan specialist now!

The FHA program has evolved since it started in 1934 and now has options for HUD insured loans that fit a variety of different borrowers and situations.

FHA Home Loans for Purchasing a Florida Home
Although Florida FHA home loans require additional paperwork, the reality is that applying for an FHA mortgage loan in Florida is not much different from applying for conventional financing. In fact, for many borrowers the small amount of extra time turns out to be an exceptional mortgage bargain because they save thousands of dollars over the life of their Florida Mortgage.

At 1st Continental Mortgage, we have been working with the FHA program for many years. We're experts at assembling the proper paperwork and presenting your loan application to FHA approved lenders diligently and professionally. It's one of the ways that we have earned our reputation for closing FHA home loans in Florida on-time.

You may be surprised at how flexible sellers are in the current market and how many programs there are that provide Downpayment assistance to applicants for FHA financing to purchase Florida homes, condos, and townhouses. The fact is, seller can pay up to 6% towards your closing costs. This means, no closing costs for you when negotiated during the purchase contract!

The FHA program offers excellent fixed rate options and never a prepayment penalty. If other mortgage lenders are quoting you subprime rates, you owe it to yourself to make the call to 1st Continental Mortgage to compare the costs of getting an FHA home loan for your home purchase. Call 1-800-570-0448 to speak with an FHA mortgage expert before accepting any conventional mortgage quote as the best you can do!
1 vote Thank Flag Link Sun Sep 20, 2009
My question is why do you want to buy another home? It is certainly within your reach, given the information you have provided. One option would be to sell your current home, then rent something while you look for another. That sounds counter-intuitive, but because rents are so low due to the number of homes on the market today, it's not a bad option. Owning two homes can be a trap, because you will lose your homestead protection on the first residence, which means your taxes will go up; if you cannot sell quickly, you face a steep increase in monthly expenses.
Another option is a reverse mortgage, with basically stops the equity loss in your home, and releases needed cash. Depending on your age, there is little downside, so this is an option you should definitely explore.
Web Reference: http://www.myriamsHomes.com
1 vote Thank Flag Link Wed Sep 9, 2009
Hello Rose and thanks for your post.

I know its extremely tempting, in today's market with housing prices in many areas at their lowest points in decades, to run out and buy yourself a bigger, newer dream home, but the accountant in me is going to recommend caution. It is precisely America's mentality of buying before assessing consequences that has led many into the abyss from which it will take years to claw out.

As a retiree, your priorities should be savings, living expenses, medical care and in-home care, insurance, and investments. The least of your concerns should be new housing, unless, of course, that decision involves downsizing to a smaller home that will be less costly to maintain and less costly to purchase, or a home in a senior community with on-site medical facilities.

Before you plan to sell your property, invest your limited savings, and change your lifestyle, rather than talk with a loan broker, it's time to talk to a CPA or CFP (certified financial planner) for help and advice. The most important thing your money can do for you now is to ensure that, if you should ever need it, your money will help you pay for living expenses. A home with equity qualifies for a reverse mortgage, which for many seniors, can be a lifesaver in a time of crisis.

Take the time to talk with an trusted financial professional before leaping into a new home.

Good luck!!
Grace Morioka, SRES (Senior Real Estate Specialist), e-Pro
Area Pro Realty
San Jose, CA
Co-Host: "Naked Real Estate" at http://www.blogtalkradio.com
1 vote Thank Flag Link Wed Sep 9, 2009
Hi Rose
You're in good shape......fully paid house, no debt, excellent credit - good for you!
You may not be working, but you stated you have an income under $50,000.You will be qualified for your new loan based on that income.
Sit down, speak to a lender , and they will give you all the details and information you need.

I would not suggest, however, in this market, that you buy before selling - especially if your income is limited.Carrying 2 houses may be a burden you don't want!

Best wishes
Debbie Rose
Prudential NJ Properties
1 vote Thank Flag Link Tue Sep 8, 2009
Hi Rose,

Also, If you are selling your current home then the existing loan will be paid off at closing and you will receive the net proceeds of that sale. You may not have a mortgage on a home you no longer own. You will put as much as you want as down payment on the new home and then you will only have that mortgage.
0 votes Thank Flag Link Tue Sep 30, 2014
Manufactured Home might be something you'd want to consider.
0 votes Thank Flag Link Mon Sep 29, 2014
With the equity from your paid in full home and $60,000 plus retirement income and/or social security, one would believe that you should be able to use this to purchase a newer home and not have to have a mortgage.

Just keeping it real!

Bill
0 votes Thank Flag Link Mon Sep 29, 2014
Rose,

Defensively! base on the information you shared, it will be easy to acquire another home after selling the one you have right now. I am guessing you would like to down size. You can always start looking for new home and once you find it you could ask your Realtor or Lawyer to write the contract for the new home contingent to selling the old one first. Of course you would have to start working on selling your home as soon as you have made the decision.

I hope this help!

BUILDER Pamela Mendoza REALTOR
Real Living First Service Realty: http://www.pamelamendoza.com
Siproeta Constructio Group: http://www.siproeta.com
Cell Phone: 305-316-1179
E-mail: pamelamendoza72@gmail.com
0 votes Thank Flag Link Mon Sep 29, 2014
Rose,

Defensively! base on the information you shared, it will be easy to acquire another home after selling the one you have right now. I am guessing you would like to down size. You can always start looking for new home and once you find it you could ask your Realtor or Lawyer to write the contract for the new home contingent to selling the old one first. Of course you would have to start working on selling your home as soon as you have made the decision.

I hope this help!

BUILDER Pamela Mendoza REALTOR
Real Living First Service Realty: http://www.pamelamendoza.com
Siproeta Constructio Group: http://www.siproeta.com
Cell Phone: 305-316-1179
E-mail: pamelamendoza72@gmail.com
0 votes Thank Flag Link Mon Sep 29, 2014
Hi Rose Marie

The minimum age allowed for a reverse mortgage/ borrower is 62.HECM stand for Home Equity Conversion Mortgage. Loan to Value ratios on Reverse Mortgages are based upon these three factors: Home Value or FHA Lending Limit (whichever is least), current expected interest rate, and the age of youngest borrower. HECM Reverse Mortgage Loans are insured by FHA. You cannot get a reverse mortgage on investment property.Reverse Mortgages may be used as purchase money loans on a primary residence.Proceeds from a reverse mortgage may be used to buy a vacation home.Once you have a reverse mortgage and you are taking monthly payments - if you wish to change the method of payment you must Request a Change and Recalculation and pay $20. Reverse Mortgage Counseling is Mandatory, provided by HUD Approved HECM counselors, and must be completed prior applying for a reverse mortgage.

http://www.reversemortgagelendersdirect.com/reverse-mortgage…
http://www.reversemortgagelendersdirect.com/reverse-mortgage…
http://www.reversemortgagelendersdirect.com/how-does-a-rever…
http://www.reversemortgagelendersdirect.com/reverse-mortgage…
http://www.reversemortgagelendersdirect.com/reverse-mortgage…
0 votes Thank Flag Link Wed Sep 25, 2013
Do it the other way around. Sell first, then buy.

It could be difficult for you to buy a home--being retired and trying to buy a home while you already own one. Even though it's fully paid, there are still expenses--taxes, insurance, maintenance, upkeep. A lender considering whether to lend to you on your new property will look at your expenses on your current home. Besides, in today's market you really don't know how long it'll take to sell. Suppose you do buy (or get a contract accepted) and then face the pressure of selling your present home. And it might not sell in time.

So, sell first, then buy.

But first check with a mortgage broker to find out what you would qualify for if you bought. And check with a Realtor to determine not just what your home is worth, but also what you'd net from the sale of your home. And to determine what other houses are out there, in your price range, that you could buy.

Hope that helps.
0 votes Thank Flag Link Mon Apr 5, 2010
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
Contact
Rose, are your friends real estate lending professionals? Would you pay any attention to their advice about medical matters? Tell them to zip it and call one of the pros who is soliciting your business.
0 votes Thank Flag Link Mon Apr 5, 2010
HI Rose! If you have retirement income such as a pension, annuity, or social security income than you can qualify for a mortgage to buy a home! The price of the home you can qualify to buy is going to depend on:

-Amount you receive in monthly income (which includes retirement income)
-Your credit score
-The amount of other monthly debt you have (credit card payments, car payments, etc)

If you have excellent credit and do not have any outstanding debt than thats great news! 60,000 is a very good sized deposit as well. To find out exactly what the max sale price of a home you would qualify to purchase feel free to contact me at 305-774-1185. This way you 'll be clear what your options are! My company website is http://www.leonmortgage.com
Web Reference: http://www.leonmortgage.com
0 votes Thank Flag Link Sun Apr 4, 2010
My answer for you would depend on why you are no longer interested in staying in a house that is completely paid for. Is your current house too big for you? Is it in ill-repair? Do you want to live by the beach or friends? You answers will also require an age disclosure. I concur will the other respondent that mentioned meeting with a CPA or a Financial planner before you make a decision.

Selling now is really not the best time. I would wait until the market recovers - which it will - before selling. If you wanted to take advantage of the low prices, you could take a reverse mortgage on your current property, buy your other property now, and then later sell your first property. A reverse mortgage would allow you to take a large percentage of your equity out now, without having to qualify for a mortgage, assuming you are over 62 years old. It's not cheap, however. Any other type of mortgage would cause you to have to qualify for it.

I have been a Realtor for almost 11 years, and I've been a mortgage broker for 12 years in Miami. I suggest you look for a competent advice from many reputable sources before putting that "for sale" sign up. And if I could be considered as an advisor, please feel free to contact me.

Elizabeth Cooper-Garcia, ABR, CRS, GRI
Broker-associate
Licensed mortgage broker
Direct: 305-431-5594
Main office: 305-667-4815
Coldwell Banker Residential Real Estate
1500 San Remo Ave #110
Coral Gables, FL 33146
0 votes Thank Flag Link Sun Sep 27, 2009
Hi Rose Marie,

I would be happy to refer you to an excellent mortgage broker, with experience handling these types of situations. She will let you know for exactly what amount of mortgage you can qualify. Just send me an email and I'll get you her contact info asap. Thanks.

Diane Loveridge
Majestic Properties
(786) 210-3449
dloveridge@majesticproperties.com
0 votes Thank Flag Link Wed Sep 9, 2009
Hi Rose,
To get the full picture I would need some more information, please feel free to call or e mail me.

Melissa Antenucci
Ameriturst Mortgage
561-417-9221
0 votes Thank Flag Link Wed Sep 9, 2009
Absolutely, just make sure that what you are buying in manageable. Your outcome will depend on what you decide to mortgage. You have options.

Let me know if I could be of some assistance.

Javier Olmedo
Florida Realty of Miami
786-395-6986
Web Reference: http://www.olmedohomes.com
0 votes Thank Flag Link Tue Sep 8, 2009
It will depend on how big of a mortgage you need. We can use retirement income so there is plenty of hope for you. Fill out the form below so I can pre-qualify you and I will call you to discuss your options. I look forward to helping you, take care.
0 votes Thank Flag Link Tue Sep 8, 2009
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