Hutson, Home Buyer in Mount Washington, KY

Relocating to area for a 3-5 year stay. Pros and cons...if I use 10,000 for a down payment, how long would I need to own the house to recoop?

Asked by Hutson, Mount Washington, KY Thu Sep 15, 2011

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The good news is that Mount Washington is one of the few neighborhood areas that did not suffer a sales slump quite as deep as most parts of the rest of the Greater Louisville area. On the other hand, no one can say for certain. It would be better to express the question as a percentage, as in "how long before a 1% down payment could be recouped"? for instance, since it will depend heavily upon the overall value of the home.

Also, though, it depends on what you mean by "recoup." If you mean, would you be able to resell the home (aka "flip" it) within 3 months and walk away with your $10,000 + profit, that is a very different question from asking if you owned it for 2 years, with the market seemingly returning to normal in our general area, should you be able to get your money back out of the house if you needed to move at that time?

No agents would be able to give you an firm answer on that because we don't have crystal balls and a bad move by congress could change the market upswing, among many other things, but in this case we would all hope the answer to the last question above would be yes!
0 votes Thank Flag Link Mon Jun 17, 2013
The Kentucky USDA Rural Development Loan Program is by far the most credit score friendly loan program currently available. While USDA is willing to work with scores lower than 640 most lenders won’t. Thus, pragmatically the minimum credit score required by USDA is 640.
For Kentucky homebuyers with a minimum credit score of 640 lenders may streamline the credit approval process normally required as part of the underwriting process.
0 votes Thank Flag Link Thu May 9, 2013
this greatly depends on the purchase price and what the area real estate values will do in that time frame. You figure when you sell your place you will pay a broker 6% to sell the house plus mortgage costs will be approximately 3-4% so if you are buying a 100K house with 10K down your value would need to increase at least 10K to recoup just your costs since your down payment will be returned to you at sale
0 votes Thank Flag Link Thu Sep 15, 2011
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