As I once heard Moe tell Larry when Curly was up to some of his shenanigans...."Everything starts at the beginning"
Israel you have presented a situation with some parameters and the reasons for those are unknown. We don't know why the credit is or your income is but perhaps it does not really matter in determining the answer to your questions.
1. I'm a first time buyer, i have no ideal how to go buy it
Then it is time for you to take steps to correct that situation. Here's my suggestion: Hud has an excellent site for people who are unfamiliar with the buying process and resources available for helping someone in your situation, so start doing some research, get informed, learn what options you actually do have.
I would start here and read everything on this page carefully..http://portal.hud.gov/portal/page/portal/HUD/topics/buying_a_home
I would absolutely make use of one of these Homebuyer Classes (WHY? Contacts, info on loan options, programs, most programs help find financial assistance ect.)
A must do for you IMHO ..http://www.hud.gov/buying/localbuying.cfm
I would make use of this Fed. site of all current Fed. loan programs to become familiar with them and again to begin preparing to make use of and learn about the process..You can get specific information, compare options, or take a short questionnaire to determine your eligibility for each program.
2. I need help
The above will help you begin to get actual help by making contacts, becoming a little more informed and knowledgeable about your options based on your situation.
3." I'm income is 13,260 a Year , and my Credit is "E" do I Have A Chance of buying at les a Three Famliy house."
A. With what you know about the process now do you really want to try?
IMHO no because to be quite frank in your situation with no real knowledge of your options, rights, the process you are far to likely to become the victim of some low life.
B. Do you really think you are currently in a position to achieve the goal you have suggested you have? Unrealistic IMO...
Can starting at the beginning help achieve the goal you have set and is it possible if you begin becoming informed?
Israel, based on the minimal amount of information here, there is no way you are currently in a position to buy . Even if you could somehow find a foreclosure that was only $35,000, you would still need someone willing to give you a loan, you could very well be competing with all cash buyers and you will most likely end up with a house that has been neglected, vandalized and comes with a whole bunch of problems- all of which would take money to fix.
Be patient, save as much money as you can, improve your credit and wait until you know you are in a comfortable position to buy.
Otherwise you could end up being one of those foreclosures he was talking about.
One thing is for sure, you'll need to start the education process for yourself and the suggested website are great options. It's interesting to note that a buyer is approximately 87% likely to start their search on the web. Here's a prime example. Good luck on your journey.
You should meet with a mortgage banker or broker and bring your last two years W-2 forms, recent pay stubs and last three months bank statements. Then have them run your credit and tell you how much you can borrow and how much it will cost you every month for the loan.
If you are buying a three family house, a portion of the rental income can be used to help qualify you. You made no mention as to how much cash you have to invest, that is also a major factor!
To reiterate, speak to a mortgage banker or broker, find out what you are qualified to purchase and then go looking for a property. If you need further assistance, feel free to contact me. Good luck!
Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665/ Cell: (917) 805-0783
Let's just do some math so you can understand what your up against.
3 Family Home For $450,000 X 5.25% interest over 30 years
The mortgage will be around $2,300 or so.
Rental income: let's say your going to live in one of the units and the other two is a one bedroom and a 2 bedroom unit fo rrent; that's approximately $2,200 each month towards the mortgage
So you now only have to pay $1,000 each month towards the mortgage, BUT you still have taxex, insurance, utilities, etc.
Now this is how the bank thinks. Let's say those two tenants stop paying you rent, but the mortgage is due month ater month. Question: How do you plan to pay the entire mortgage yourself on your income.
All of these things boils down to simple math and knowing truthfully what you can afford each month for a home after your regular expenses.
If there is then contact a mortgage banker you trust & get prequalified... they will tell you if you have enough for a down payment (20-25%) as well as what you can afford on a monthly basis - just don't get in too deep regardless and spend 1 weeks worth of your salary on your mortgage, not more is rule of thumb...
Its hard to find anything under $200,000 in my backyard(even in the "boonies" of Warren and Sussex Counties) and the ones that are, frankly, are a bit scary and definitely need work.
I would think that discouraging people from buying what they cannot afford is less about the commission and more about saving someone from making potentially a disastrous decision.
It's reality check time now: If your salary is $13.260 per year you have to figure tripling your annual income, so the most you can comfortably afford to buy is a property that is approximately $39,000. You are not going to be able to qualify for a mortgage for a foreclosure in Bushwick for the type of property you are seeking, unless you have alot of cash on hand and do not need significant financing. (You didn't indicate how much cash you have for a dp). We listed an REO 2 family in Bushwick and the final asking price was $399,000 with offers of about $349,000.
Our final advice is to visit some reputable mortgage brokers and your own financial institution to determine the actual mortgage amount you will qualify for. WIth that solid number you can determine the type of property you may want to buy.
You may wish to look outside of the pricey metropolitan areas or in more rural communities.
Bushwick and surrounding areas are full of forecloses and REO (real estate owned by banks) that can be obtained for that price or ballpark that will need work but you will be an owner and grow equity by making improvements.... Ask a local RE agent for REO properties or go to county clerks office and ask when they hold property auctions.
$13,260 x 3 = $39780
Maybe someone will give you a mortgage x 4 instead of x3.
I have seen that a mortgage payment should not take more than 1/4 of your income.
Can you afford anything? Ask a local realtor and lender. They should be able to give you more concrete replies.