Home Buying in Leesburg>Question Details

Yolanda, Other/Just Looking in Ranson, WV

hi, i want to know if its possible for my and my 3 siblings to buy a house the oldest is 20 and youngest is 17

Asked by Yolanda, Ranson, WV Tue Jul 28, 2009

we have an acount that all of us has put money and we have 28,000. my aunt says this is enough to get a bank loan and that this money we can use for downpayment is this true? Many have adviced us to not do this but we want to live together and we have specific agreements between us that if one of us gets married we still pay the house and still live there we want to pay the house as fast as possible like leaving the mortage higher so it will take less years to pay. i dont have any experience whatsoever so please answer , i really need the advice....

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13
James,

As a loan officer you should know that many borrowers QUALIFIED for a mortgage during the 2004-2005 years. How many of them no longer own the house?

Purchasing a home and actually keeping it are two different things.

Yes, Yolanda and her older siblings may purchase a house and KEEP IT if this is what THEY decide to do and IF such arrangement works for them (at least for a few years), however, LEGALLY their purchase is more complicated one because of mortgage obligations and title issues.

Considering the fact that Yolanda's brother is still underage, he does not even qualify for a mortagage or to sign a LEGAL contract.

To learn about the risks and benefits of purchasing with unrelated partners and title issues - fortunately and unfortunately, purchasing with siblings falls in the same category:

http://viviannerutkowski.wordpress.com/2009/06/01/risks-and-…

NOTE: The above was NOT a legal advice. For a legal advice always contact your trusted real estate attorney.
1 vote Thank Flag Link Sun Aug 2, 2009
Yolanda....Wow, where to start. First of all, there is not quite enough info to know if you would qualify, but certainly the family members 18 and over are able to execute contracts, and you certainly have FHA loans that allow as little as 3.5%, so your joint savings should be enough to cover that plus closing and allow you to purchase. I also read the posts about 55 plus communities, and your aunt. I see nothing in your question regarding this, so I will just remain a bit puzzled on that, as I did not see your previous post!
I do not know if I am capable of helping you decide if this is a good idea or not, or "in your best interest" as some have counseled you already. Lenders are very thorough today reviewing credit worthiness and ability to repay a mortgage, and never make judgements based on personal issues, only on the facts as presented. In terms of Yolanda's comments, I am rather appalled that she would comment and smear both lenders and her competitors in such an offhand way. If you qualify...meaning you CAN afford the home, and you present a contract saying you want to buy a home, Lenders will simply try to get you a loan. Simple and directly. What is best for you and your siblings? I do not presume to know. However, If you and your siblings decide the best thing for you is to buy, then by all means explore your pre-qualification process with a Lender you choose. The lender will spell out all the costs, the monthly mortgage and terms, and go over all these items with you. If all seems well with the numbers, and you still wish to move forward based on those numbers, you can then choose a realtor, and be on your way to purchasing your first home! I wish you well, and a happy home buying...Jim
1 vote Thank Flag Link Sun Aug 2, 2009
Yolanda,
I am an agent in VA and WV. It might be possible to purchase in a home but thier are allot of details that need to be explored. Is this going to be long term investment and what region will you be looking. VA nad WV have some good areas to invest in and some that are more risky with the current market conditions. If you would like more insight into this feel free to contact me directly. I would be happy to help guide you thought exploring your options.

I personally purchased my first home when I was 20 years old. You have an ambitious financial goal.
Shannon Casper
Keller Williams Realty
0 votes Thank Flag Link Tue Feb 9, 2010
I was thinking the same thing ... Ms. Evans has been resurrecting a lot of old threads ... must be a symptom of "newbie syndrome" ... LOL!
0 votes Thank Flag Link Sun Jan 24, 2010
Wow, talk about resurrecting threads from the dead!!!
0 votes Thank Flag Link Sun Jan 24, 2010
Dear Yolanda:

It seems to me reading your previous post that you and sibliings have no credit history. For a lender/bank to lend money to any consumer the first thing the Banks look at is everyone's credit history. If you have no credit history it makes it very difficult to qualify for any type of loan.

I would highly recommend that you speak to a lender to find out what your options are to build credit. At this point in time, I would recommend that you need to build your credit, and please do not use CASH to pay your bills. Lender's want to see what goes into your bank account and what goes out, and they also review your employment history. Good Luck

Terri Evans
Real Estate Consultant
Licensed in Virginia & West Virginia
Please visit my website http://www.WinchesterVaHomes.com for Free information.
0 votes Thank Flag Link Sun Jan 24, 2010
Yolanda,

Most of all, You need to rely on your own common sense!!

There is somewhere a lender who will give you a mortgage, EVEN if it is NOT in your best interest.
There is somewhere a real estate agent who will sell a home that you will not be able to afford comfortably - I am hoping that no self-respecting REALTOR would ever do that.
There is somewhere a real estate attorney who will write an Agreement for you that spells out all the terms of the purchase between you and your siblings, as you should have one.

HOWEVER, all of that will do you no good if you purchase a house and in 1-3 years realize that it was a WRONG decision - or if you are not able to KEEP the house for some reson (we covered those in your previous question).

Why not wait those 1-3 years and build up your credit and downpayment - chances are that by that time your perspective on life will change as well!

Again, I admire your tenacity and frontier entrepreneurial spirit, but, I believe, you need a wise relative or a good adult friend you can rely on AFTER you purchase that home. What do your Parents think about this investment - since you are all very young, their opinion should matter.

If I were you, I'd do a LOT of homework BEFORE the purchase.

You do not want just to purchase a house, you want to be able to KEEP it and enjoy it!
0 votes Thank Flag Link Wed Jul 29, 2009
Your question could possibly be answered by a Realtor, but it really shouldn't. You should really speak with an experienced and honest financial advisor and loan officer.

The financial advisor will be able to explain all the pros and cons associated with what you're trying to do.

The loan officer can tell you whether you're approved for financing and what type of financing or, if you aren't approved, what you can do to better your credit/financial situation so you can get approved in the future.

In addition, you may want to chat with a lawyer regarding having multiple unmarried persons responsible for the mortgage payment - there are a lot of things you should consider (even if they're family).

Danilo
http://LoudounScene.com
http://LoudounForeclosures.com
0 votes Thank Flag Link Wed Jul 29, 2009
It depends! Most retirement communities will not allow full time residents under 19, and they are allowed only if someone 55 or older on the deed.

Most other communities are a different story. You need to speak with a lender and find out what you are qualified to purchase. Ask them if it's better to keep your savings or use it as a down payment.
0 votes Thank Flag Link Tue Jul 28, 2009
Yolanda, if after all of the advice you've received has not deterred you from moving forward than, I recommend you speak with a good REALTOR who can advise you. And it is very important to get legal advice regarding your younger sibling. Please let me know if I can be of assistance.
Web Reference: http://www.GottaHavePav.com
0 votes Thank Flag Link Tue Jul 28, 2009
Hello Yolanda:

It's not impossible for three siblings to purchase a home, but it will be difficult.

Depending on the laws in your state, two or all of you may be too young to execute a valid contract by yourselves without a parent or guardian present to co-sign. In most states, one must be the "age of majority" (18 for most states) or an emancipated minor to execute a contract for real estate. Otherwise, you'll need a parent or guardian to help--your Aunt or another trusted family member could help you.

Second, unless all three of you have credit histories (credit cards, bank accounts, timed payments) and steady jobs with recordable, verifiable income that is sufficient to cover the monthly mortgage, its unlikely that a lender will provide you three with a loan. Again, you'll probably need a guardian/parent to co-sign on the loan due to the ages of the home owners.

Finally, at your very young ages, the very best thing that you can do with the $28,000 is to invest it in a good mutual fund where it can continue to grow. Also, consider using the funds to invest in yourself--specifically, in your education to ensure that you can obtain jobs in the future that will guarantee that, at the right time, you can afford a home that suits your style and individual needs. I did not personally purchase my first home until I was 28 years old, and I did so only after I had graduated college, attended graduate school and had been firmly established in a career. When I completed this, not only was I able to afford the monthly mortgage payments, but lenders (banks) were more inclined to lend money for my first home too.

I applaud your desire for home ownership, but I think you might find those funds better suited toward helping you obtain a good college education to ensure your financially solid future! Good luck!!

Sincerely,
Grace Morioka, SRES, e-Pro
Area Pro Realty
0 votes Thank Flag Link Tue Jul 28, 2009
Yolanda,

You mentioned your aunt, however you said nothing about your Parents. Do you have adult relatives for moral support?

The mortgage is a huge financial obligation, and maintaining a home is a no small task either.

Will you have adult (40+) relatives to advise you when a storm damages a roof or siding? Will you have extra money when appliances break, the wash machine floods, or other unexpected repairs? Will you know how to deal with your lender when a dispute arises? Pay all bills and taxes on time?

Here is a link about title issues:
http://viviannerutkowski.wordpress.com/2009/06/01/risks-and-…


I admire your frontier enterprenurial spirit!
0 votes Thank Flag Link Tue Jul 28, 2009
Yolanda, according to your previous post, you and your sibliings have no credit history - this could make it difficult to qualify for a loan. Your first step should be to talk with one or more lenders to find out what type of loan might work for you. If you don't have any lender contacts, please get in touch with me ... I'll be happy to provide you with a few names.
Web Reference: http://www.GlendaCherry.com
0 votes Thank Flag Link Tue Jul 28, 2009
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