Home Buying in Little Rock>Question Details

Ann, Both Buyer and Seller in Little Rock, AR

My Sister lives in Fla. and wants to move to Ark. Does she have to sell her home in Fla. before she can purchase one here? She has no money down.

Asked by Ann, Little Rock, AR Mon Aug 30, 2010

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That depends on her financial situation and her ability to obtain financing here in Arkansas. There are also several creative way to home ownership...

6 CREATIVE WAYS TO AFFORD A HOME

Investigate local, state, and national down payment assistance programs. These programs give qualified applicants loans or grants to cover all or part of your required down payment. National programs include the Nehemiah program, http://www.getdownpayment.com, and the American Dream Down Payment Fund from the Department of Housing and Urban Development, http://www.hud.gov.

Explore seller financing. In some cases, sellers may be willing to finance all or part of the purchase price of the home and let you repay them gradually, just as you would do with a mortgage.

Consider a shared-appreciation or shared-equity arrangement. Under this arrangement, your family, friends, or even a third-party may buy a portion of the home and share in any appreciation when the home is sold. The owner/occupant usually pays the mortgage, property taxes, and maintenance costs, but all the investors' names are usually on the mortgage. Companies are available that can help you find such an investor, if your family can’t participate.

Ask your family for help. Perhaps a family member will loan you money for the down payment or act as a co-signer for the mortgage. Lenders often like to have a co-signer if you have little credit history.

Lease with the option to buy. Renting the home for a year or more will give you the chance to save more toward your down payment. And in many cases, owners will apply some of the rental amount toward the purchase price. You usually have to pay a small, nonrefundable option fee to the owner.

Consider a short-term second mortgage. If you can qualify for a short-term second mortgage, this would give you money to make a larger down payment. This may be possible if you’re in good financial standing, with a strong income and little other debt.
0 votes Thank Flag Link Mon Aug 30, 2010
Arkansas will allow you to own property in another state, however, you cannot take the $350 homestead exemption unless you are living in the home in Arkansas as your primary residence. You can buy in our gated community and qualify for Rural Development Money with no down payment, however, you must get with a mortgage broker or bank and get pre-approved based upon your credit and ability to pay! Let me know if I can get you a contact here concerning financing.
0 votes Thank Flag Link Mon Aug 30, 2010
Well it depends. Can she afford it? There are many scenarios that can play out here. She will need to talk to a Mortgage lender about her situation. There is a loan called a US Department of Agriculture rural developement loan that is a no money down loan. She will still have some closing costs though. If I can be of assistance please feel free to contact me. I am a REALTOR is the Central Arkansas area. Have a wonderful day!
0 votes Thank Flag Link Mon Aug 30, 2010
will she get any money from her home sale here in Florida or will it be a short sale? She really needs to talk to a good lender in Ark. for advise specific to her situation., If she is currently living the the Ft Myers area and has not lested heer home, I would be happy to help her on this end.

Marge Bennett
Sellstate Achievers
239-560-4159
0 votes Thank Flag Link Mon Aug 30, 2010
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