Home Buying in 08817>Question Details

Tim Blomlie, Home Buyer in Ocala, FL

it seems we make too much money to qualify for the usda loan but i cant afford the 3.5% down payment any ideas on what i should do

Asked by Tim Blomlie, Ocala, FL Tue Mar 9, 2010

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36
Is this the House of Glass thread?

Blanket statements and offended?
"Overall, please don't hesitate to call me or e-mail. And as someone mentioned, your address is states Florida. If you are buying in Florida, and not in NJ, I can help you down there also. I am also licensed in FL and there are different state programs and types of grants in FL also. "

Is that Self-Promotion, solicitation? Perhaps a look at the Community Guidelines might answer that question, but I do know someone using a question to respond to in this Forum to openly solicit business
offends me..

Guess maybe ya should consider putting that rock down.

Ready to Buy? Doesn't even know how to come up with 3.5%, some might question the ready part.
3.5% of what? $100,000 or $500,000 so who's making blanket statements?

Tim this is about YOU and YOUR financial commitments obligations and perhaps seeking some sort of answer to your specific question might be better found some place else than a Forum of people who make their living SELLING SERVICES and they need people to sell those Service to...
As one suggested earlier Stuff happens and no one selling or offering you Services is going to bail you out if "Stuff Happens" because YOU made a bad decision when YOU decided to buy...

YOU as the one responsible ultimately for the failure or success of your purchase and the one responsible for the Financial obligations need to think about your actual ability to buy at least as much as deciding what toppings you want on your Pizza.

Become informed...Research your Market area, research loan options, realistically review your finances and prepare yourself for some Major Decisions, like who to choose to work with. Prices are not going to skyrocket upwards anytime soon, interest rates, everyone has an opinion but no one knows. (If you like I'll post links to all the hurry and buy now rates have never been lower PR put out by NAR and lenders since 2006....Many think if rates do go up it won't be 7/8/9/10% rather 5-6% in the next year or two....But as those who sell services like to say when questioned on these things...We don't have a Crystal Ball lol

Perhaps you can afford to buy, perhaps not, I don't know and neither does anyone else here based on the info you supplied....But I do know one thing is a Fact....

YOU better figure out if you can and if doing so is a wise decision even if you can....You cannot do that if you don't know your market or options first...Lot's of info available, find and use it to prepare for the Most important Decision of all..CAN I ACTUALLY AFFORD TO BUY, CAN I ACTUALLY LIVE UP TO THE FINANCIAL OBLIGATIONS INVOLVED....
That's your question to answer because it your obligation and responsibilities you are considering, not someone selling Services IMHO

Good luck
Dunes
4 votes Thank Flag Link Tue Mar 9, 2010
lol.. this has gotten worse..Tonya.... Suprime with 450 credit scores? Blame the gov't for a lot of the mess. Do you want facts? President Clinton forced Fannie Mae to make more loans affordable. I have written about this. And who bailed Fannie and Freddie out? Well, the gov't did, but by using our own money that we will be paying for a long time.

So, you know who I blame? Some of the general public that elect such jokers claiming to be politicians. We need business people to run this country. But that is a whole other topic. I am just taken back at how this has turned and that I am a part of it. But some of you need facts and not bad opinions.

Overall... yes, lenders got greedy... but so did politicians. Learn how and where to point the fingers..

@ Marc... that is your right to choose who you want to work with. This is not the 1970's or the 1980's, or even the 90's. You are NOT a bad buyer if you don't have a savings. Not everyone can save for different reasons. I hate to say this, but some of you need to grow up.

@ Bob Hope... watch what you say... FHA is in some trouble now... overall, it seems that people need more facts than hard headed opinions.

ANyhow... I need to walk away from this forum for a while. Talk about some people causing stress... I feel like I am part of a political debate and some people will just never learn and or listen. Something our gov't has been good at lately.

Jeff
4 votes Thank Flag Link Tue Mar 9, 2010
Tim follow John Sacktig's advice because he knows what he's talking about.
Figure out how to do it and if it makes sense and then make ur decision.
@Marc if u don't know Tims situation then dont make such blanket statements.
What if he lives in an area (like mine) where u can buy a home and pay much less motgage than rent?
It is very foolish to give advice when u hear half of a story-especially when Tim said that he makes too much to qualify for a USDA loan-do u even know USDA income limits?
Maybe, Tim is finishing paying for college?
Ask a few questions and give intelligent answers, but don't insult Tim's intelligence by assuming he has no clue.
Believe it or not, he may be able to figure out on his own if he cant afford to buy.
I believe the question was how to buy-not if he should buy. Glad ur smarter than all the other responders.
4 votes Thank Flag Link Tue Mar 9, 2010
Marc... lol....

Ah, thanks for bringing that exact point up... which I wrote about. I would rather have a borrower put 3.5% down and not use their remaining 2 1/2% to 5 1/2%.... but each borrower is different, not the same.

In any case, Marc, I am done with you... say all you want. Stop being a preacher. I feel like I am in church now. I was just merely pointing out facts and not opinions. You have dug deep to pretend to make yourself feel better. I don't sell. I consult, advice, and help people get through the process. We aren't talking about doing drugs here.. or drinking 7 days a night. I care about my clients and ask them appropriate questions... if they only have 3.5% down, then that is what they have to work with. Are you telling me that people should not rent then, if they have no money but their monthly payment? Please explain that one. We could be here forever, debating both sides... and yes, there are pros and cons for both sides, so get off your high horse Marc... This is sad.. you have a belief and how you want to do business. As I stated, FHA has been around since 1934 and allowing borrowers with little down. Everyone is in trouble now....

Done.. say what you want, but I think those that are reading and understand, understand where I am coming from. I can sleep at night.. I take pride in what I do and how I help people. I don't need you talking down to me like I don't otherwise. Just the fact that your advice is bad, sorry... but it's a fact.
3 votes Thank Flag Link Tue Mar 9, 2010
Tim....

One more thing... are you 110% sure that you make too much income? You might have spoken to someone that might have given you the wrong information. USDA just recently changed up their income policies. You can even go beyond 8 people living in one property, as a family.. there is more to this. So I am just asking to make sure. It wouldn't be the first time that I have seen someone give out the wrong information.


thanks,
jeff
3 votes Thank Flag Link Tue Mar 9, 2010
@ Tonya, I so agree with u! An FHA loan has strict guidlines when it comes to income and u need some type of credit to go along w/ it.
@ Marc I couldnt agree with u more-3.5% is a joke, but somehow Fannie Mae and Freddie Mac are the ones who needed bailouts-not the FHA.
FHA sustains itself by collecting mortgage ins. upfront and monthly.
I didn't buy with FHA because I didnt want to have to pay the piper, but its the one system that actually works.
Mortgage backed securities, no doc loans, expiring adjustable mortgages, etc is what killed us-not 3.5% down FHA loans.
Besides, if u want to petition, u are in the wrong place-go to FHAs website and file a petition.
3 votes Thank Flag Link Tue Mar 9, 2010
Marc...

NEWS FLASH... there have been hundreds and thousands of buyers that have used FHA, VA, and USDA financing that have had hardly any to no equity when buying... and they still live in their houses, even if they are upside down. I know people that put 20% down and they are upside down. Buying a home is an American dream... if I lost my equity now, I would not panic and that I would want to leave my house. That is what you are assuming.if I lost my equity and became up side down....

People are losing their jobs... deaths in the family... divorces... loss of income,... loss of second jobs... these are the many reasons for our foreclosure problems. Yes, some allow a home to foreclose because they are upside down... but not all or everyone.

Overall... I still cringe at your statements... you are assuming. Did you poll each and every person that is upside down? Just curious...


Tim... sorry about all of this... as I have mentioned, I can eevn do loans in Florida. I actually deal with a real estate office and a seperate realtor that I have become their primary lender, because I have closed loans in Florida that other loan officers either couldn't do or just delayed the process for months. I could possibly even refer you to a realtor in your area if you just need some help with that.

Overall... please don't hesitate to call me or e-mail me with any questions.

thanks and again, sorry about this...

jeff

Jeffrey J. Belonger
Area Manager

Infinity Home Mortgage Company, Inc
Processing : 800-587-2762
Cell : 609-440-5133
Fax : 775-361-6619
e-mail : jbelonger@ihmci.com
3 votes Thank Flag Link Tue Mar 9, 2010
Many of you should be ashamed of yourselves and I guess I should to, for jumping in this forum when someone has asked for help. So many people, including realtors, sound so self-serving.... It's late, I can't think of the term. But leave these types of questions to qualified/professional loan officers. I have been reading way too many answers by realtors giving their input. I don't tell borrowers how to buy homes or how to sell them. Please stop the marketing ploys, it's getting disgusting on here....


@ Marc... I guess you are the same type of person that says that you must have skin in the game. Please read what I wrote about skin in the game,... having and needing money to buy a home. http://activerain.com/blogsview/1273411/i-want-your-skin-in-…

Marc..... I have been doing mortgages since 1992 and I have had 3 people that I know of that have foreclosed. Sorry to be blunt, but stuff happens to people. FHA mortgages have been around since 1934 and the little down payments that are required have done pretty well. Why are people all up in arms now, especially about FHA mortgages that allow borrowers to put 3.5% down? Because we are in an economic crisis and because FHA loans are being used more often then anything else. Marc, please read these two articles that I wrote ....

http://activerain.com/blogsview/1402384/are-we-living-in-a-n…

and

5% down or more is not your answer : http://activerain.com/blogsview/1266415/fha-loans-to-5-down-…

Marc... I agree with Bob Hope, who says that you are making a blanket statement. Yes you are and I feel like I am a parent talking to a kid. We are suppose to be helping people. Yes, I am in a sales position, but speak to any client that I have helped.... I have told some in the past not to buy, ...well, that was my advice.. or some that it was not beneficial to refinance. Question for you Marc, isn't your profession a sales person? As much as I don't call myself one, that is the line of work that we are in. Yes, there are many that sell sell sell.... and don't care about the consumer. But that is not everyone.

Secondly, I usually spend about 20 to 30 minutes the first time I speak to a potential borrower and when qualifying them. I go deeper than many, asking many questions... asking about their goals... what payment they feel comfortable with and not what the highest price they can obtain.

Marc... your comments and statements offend me deeply, because of what I believe in, how I hold myself to a higher standard, and because of how I treat people based on how I would want to be treated. If I was a counselor, I would say that you have some issues of hatred. I feel semi shameless in writing this, because I feel that this is a _____ session in public. But I guess this is my transparency. Not the best rate or the cheapest costs... but because some of us will give up our time to help someone, and not just for a pay check. I always told my mom that I felt at times like I was in the Peace Corp, when I didn't make as much as I should have. Sorry, but you have a bad attitude and you are making general accusations and implying that we are all the same, that we just sell. Then may I ask what you do as a real estate agent?

Sorry everyone and to Tim, but this is pathetic. It really is...I don't agree with many that answer the questions here on Trulia... many from realtors that answer mortgage questions, just to get their names and faces out there. But wouldn't I be assuming then? Implying?

Marc.. you made this statement....

"Also, the market in most areas is still dropping, albeit at a slower pace. You buy with no money down and you will be upside down in no time. What good is that?"

Can I borrow your crystal ball? Seriously.... yes, every market is different and you have no idea where he is buying. Should he wait longer to get a house cheaper, when rates are extremely low and that he can possibly get the first time homebuyers tax credit? What happens if rates will go up in the next 5 months? Yet the house value goes down 20k? Well, I have news for you... if rates went up 1/2%, his mortgage payment would still be higher. A buyer should be buying a home to live in, to build a life in, and as an investment. Most buyers should not be buying to sell in a few years. yes, things happen... but that should not be the reason to buy. Sorry, but you need to study all the pros and cons and not make blanket statements.

(cont.)
3 votes Thank Flag Link Tue Mar 9, 2010
I'd like to know also what the poster thinks also, but I think it should be started in another thread
When I posted to Tim, I was directing him to look into it further and prepare himself correctly with the proper due diligence, when that is done Tim should be able to make an educated decision that is best for his situation.

As Realtor that assists his clients in purchasing their home, I feel that the buyer should research their situation with the correct parties, as I had stated. I would think that someone that comes into a forum like this and asks a question is on their way to finding their particular answer, as a Realtor not knowing this persons financial situation I would recommend that he speak to a mortgage professional and find out what is available to him and his situation will present itself to him, as only he knows what he can do and afford.
When a Realtor makes his nasty “know it all” comments (as stated below) to a potential client, it discourages that person and shuts them out. I would rather offer the help and information that is available to help that person understand their situation better. And guess what? If they cannot do it at this point, guess who they will remember that cared enough to help them when they had a question.

No one, Realtor or Mortgage person should sugarcoat anything to a client get their business but give them the information necessary to make their decision. Comments like those below comes across as the type of Realtor that is worried about getting paid and enters a transaction only if the client is a easy deal, an easy paycheck , be it a home sale or one of their other business interests. It is these type Realtors that hurt our image and business overall.
2 votes Thank Flag Link Wed Mar 10, 2010
"Listen to the salesmen, they know best. Everyday in the history of the World is always a great time to buy, no matter what it might do to you or your family. Just do it! "

Marc likes to grandstand and make comments without reading. As the following reads...

Meet with a mortgage person to help as there are programs and financing availble for people in your position.
But as anything else, due dilligence is the key to any transaction, that means research. Do your research and see what it will cost you to buy the home, the mortgage and so on and then make educated decision.
There can be hope for you to buy your home and it is a great time to buy. Good luck!

For the people like Marc, THis statement means to do your research, and make an educated decision.
2 votes Thank Flag Link Wed Mar 10, 2010
As far as USDA, make sure you are being qualified in the right bracket (# of family members). As mentioned below, you can also choose a grant option in the Smart Start program or for a few more weeks, you can choose the Tax Prefund program, which is similar but has a lower interest rate. (I'm assuming you are buying in NJ).

Check this out regarding the Tax Prefund. I have closed quite a few of these. If you need advice, just e-mail, call or text.

Here's that post ...
http://njmortgageblog.com/post/1528174/nj-first-time-home-bu…
http://njmortgageblog.com/post/1517828/nj-hmfa-smart-start-l…
Web Reference: http://njmortgageblog.com
2 votes Thank Flag Link Wed Mar 10, 2010
u can also google first time homebuyer grant Florida and lots of stuff will come up.
I Hope u find and buy a gr8 home for u and ur family real soon.
@ Jeff all I'm saying is FHA isnt the one that needed a govt bailout.
2 votes Thank Flag Link Tue Mar 9, 2010
Tim you have to find which grants are available in ur area-it might cover the entire down payment.
You need to ask real estate agents and mortgage brokers familiar with ur market.
You can also google
2 votes Thank Flag Link Tue Mar 9, 2010
Hi Tim,

Don't listen to the naysayers.

Meet with a mortgage person to help as there are programs and financing availble for people in your position.
But as anything else, due dilligence is the key to any transaction, that means research. Do your research and see what it will cost you to buy the home, the mortgage and so on and then make educated decision.

There can be hop e for you to buy your home and it is a great time to buy.

Good luck!
2 votes Thank Flag Link Tue Mar 9, 2010
Hi Tim

Honestly, if you can't afford a 3.5% down payment, then you cannot afford to buy a home. I know 20 agents will sell you one and 30 mortgage guys will offer a creative way to finance it, but houses are expensive in so many ways beyond the mere mortgage payment.

Also, the market in most areas is still dropping, albeit at a slower pace. You buy with no money down and you will be upside down in no time. What good is that?

Rent for a year or two and save some money for a proper down payment. Also save $20,000 or $30,000 for emergencies. That is the correct and responsible way to buy a house.

-Marc

Marc Paolella
Relocation Director/Appraiser
Century 21 Joe Tekula Realtors
Phone (direct): (973) 584-4235
Web: http://www.marcpaolella.com
2 votes Thank Flag Link Tue Mar 9, 2010
Tim,

Several people answered your question with bits and pieces. The only two types of loans that are truly 100% financing are the USDA loans and the VA loans. These 2 loans require no money down for a downpayment. Yes, you need 3.5% down for a FHA mortgage. As mentioned, you can get a gift for FHA loans. For a FHA loan, your gift can be 100% from any family member or relative to cover anything... to include your downpayment. Yes, NJ has a grant program. You can also obtain grants from any type of non-profit organization. FHA allows for non-profits to cover anything. These types of grants are considered gifts also. I would be glad to discuss these further with you, considering that they take some investigating that many don't know about. These types of non-profit grants aren't part of the New Jersey program that Al mentioned below. So you aren't paying a much higher rate.

Overall, please don't hesitate to call me or e-mail. And as someone mentioned, your address is states Florida. If you are buying in Florida, and not in NJ, I can help you down there also. I am also licensed in FL and there are different state programs and types of grants in FL also.

Thanks,
jeff

Jeffrey J. Belonger
Area Manager

Infinity Home Mortgage Company, Inc
Processing : 800-587-2762
Cell : 609-440-5133
Fax : 775-361-6619
e-mail : jbelonger@ihmci.com
2 votes Thank Flag Link Tue Mar 9, 2010
Tim,

I apologize for Trulia that my last answer was deleted; simply because I was offering myself up as someone to talk to locally (I'm in Eustis, just south of you in Lake County). Personally I find this opinionated banter almost offensive. If you have the opportunity to house your family within what you consider your means, then no one on here has the right to tell you not to. One thing you should consider regarding your down payment is that credit is still very tight and cash dominates. I'd hate to see you pressured to put all your money into a new house only to have a family emergency wipe you out. Reserves (cash in the bank) are important in a market where tapping the equity of your home may be impossible.
Again- if you would like to talk to someone locally who knows what we deal with here in N Central FL, feel free to give me a ring. You can reach me via my profile or at 352-516-9884. Good luck to you and your family.
1 vote Thank Flag Link Fri Mar 12, 2010
As a long time home owner, save your money until you can come up with a down payment. When I bought my first home, the standard down payment was 20%...I saved until I had the down payment and a cushion for moving and incidentals.

Sharon Blomlie
1 vote Thank Flag Link Wed Mar 10, 2010
I frequently wonder what the pubic thinks when they read this type of exchange that we are seeing lately on this thread. Tim, would really love to hear your opinion on it.

Deb
1 vote Thank Flag Link Wed Mar 10, 2010
Deborah Madey, Real Estate Pro in Red Bank, NJ
MVP'08
Contact
Hi Tim,

Here's a link for various mortgage and affordability calculators. In particular, 5a and 6a may be of interest to you. One is a rent vs. buy calculator, the other is an affordability calculator.
http://www.mtgprofessor.com/calculators.htm

The calculators do not take the place of information and advice from a qualified trustworthy mortgage professional. Calculators like these are tools for buyers to use while doing some research and due diligence.

Best,
Deb
1 vote Thank Flag Link Tue Mar 9, 2010
Deborah Madey, Real Estate Pro in Red Bank, NJ
MVP'08
Contact
Jeff,

The only "fact" is that people who ask questions need rational advice, not a sales pitch. When someone cannot raise $7,000 for a down payment that is already way way way too low to begin with, and doesn't include money put away for emergencies, they need to be given responsible advice, not "I'll make it happen, call me!".

Bedtime...

-Marc
1 vote Thank Flag Link Tue Mar 9, 2010
Jeff,

You can write marketing blogs until the cows come home.

But the buyer is unable to raise 3.5% for a down payment.

And Jeff, what about having $20,000 or so in reserve to handle unexpected repairs, accidents, illnesses, unemployment, or 500 other things that I can't even imagine?

Do you care about any of that? Or do you just want to push someone into an irresponsible low down payment government sponsored (!!!) loan, close the deal and forget the problem you just created?

Please, before you throw a word like shame around, reflect for a minute.

-Marc
1 vote Thank Flag Link Tue Mar 9, 2010
Thank you Tonya exactly. And we as agents are as much to blame as anyone else. Anything to make a commission, just get them into a house right?

Wrong. At this point I am very careful to work only with buyers who have a sufficient down payment AND cash reserves to handle emergencies and repairs that always come up with owning a home. I am not going to coach a couple with no money on how to commit financial suicide. I just tell them to rent and save money. If they don't like it they can find 20 hustlers who will figure out how to make their "dream" come true. Unfortunately those hustlers will be nowhere to be found when the dream turns into a nightmare.

-Marc
1 vote Thank Flag Link Tue Mar 9, 2010
Bob,

If he cannot afford the measly 3.5% down payment, than he should not be buying a house. That's just the way it is. We have enough hustlers in the industry pushing people to buy no matter what, and enough apologists insisting that everyone should have a house, just because they want it. Time for a little responsibility so we do not have another housing crisis.

3.5% is a complete joke anyway. It's basically equivalent to no money down and will cause another housing crisis in the future for yet more underfunded and overleveraged homeowners.

-Marc
1 vote Thank Flag Link Tue Mar 9, 2010
Yes Tim,

Listen to the salesmen, they know best. Everyday in the history of the World is always a great time to buy, no matter what it might do to you or your family. Just do it!

-Marc
1 vote Thank Flag Link Tue Mar 9, 2010
Hi Sak,

I work in 08830 aera.
please call me at 732-910-8559 and also go on my website
http://www.homesinedison4sale.yourkwagent.com.
For down payment, you can get help form your friend and realtive
but this is good time to save save , more money in rent then buy buying a home
as low intrest and low pirces your mort.payment will be much lower may be like
what you are paying rent for now depends on how much you are sepnding in the home
0 votes Thank Flag Link Mon Oct 11, 2010
Tim,

I do think it is good time to buy and prices will not fall much further.

But in your case, I am seeing bad signs all over as follows...

1. Not having downpayment. living month to month. no cushion for unexpected repairs. no monthly budget for higher utility bills, backyard maintainance etc.
2. mortgage costing 300 more than rent ! It should be actually less than rent because you have to add property tax, insurance, warranty, repairs, setting money aside for remodelling etc.
0 votes Thank Flag Link Mon Mar 22, 2010
Tim,

Ignore the Holy War. I am sure most mean well, but just for the fact that some have opinions that I disagree with. It should not be our place to tell you that you can't or shouldn't buy just because you don't have 20% to put down. And for someone to assume that we aren't doing you justice, is a bad assumption if we allow you to buy with less money. I can only speak for myself, because I do go over enough questions when screening all of my clients. My first and biggest question is to make sure what you feel comfortable with in regards to a mortgage payment. I then proceed to talk about your finances, goals, and a few other questions. It's premature for anyone else to think anything differently based on a quick answer or comment in this forum, just thinking that most of us sell the borrower anything just to make a quick buck. That is what got my feathers ruffled.

In any case, I still have a few questions based on what you have mentioned in your last comment. One important question would be, how long have you lived at your current residence? This can be very important in regards to the tax credit that is still being offered. The 2nd part would be, how much do you actually make and how many are in your family. Because your original question says that you seem to make too much to qualify for a USDA loan. Based on whose statement? Yours? Another lender? I only bring this up because I just recently had a borrower who was told by another loan officer that they would be better off with a FHA mortgage and not a USDA mortgage. This was very bad information and I could only speculate why this loan officer made this statement. Because numbers don't lie and the USDA loan was better for this borrower on several accounts. I have found some loan officers give false info just to steer a borrower to another type of loan that they can either handle or that they just feel more comfortable with. Sad, but true and happens more often than some would think. I had a client last year who was told that her 10% down would be better for a conventional loan and not using her VA benefits. The sad thing here? She had 2 different loan officers tell her the same thing and this was false. The numbers did not lie, and the VA loan was better for her. I ended up doing some investigating of one of the lenders and they didn't even do VA loans, that they weren't approved.

In any case, I still would like to talk to you some, because it's hard to give you any real good advice, without knowing some more details.

Thanks,
jeff

Jeffrey J. Belonger
Area Manager

Infinity Home Mortgage Company, Inc
Processing : 800-587-2762
Cell : 609-440-5133
Fax : 775-361-6619
e-mail : jbelonger@ihmci.com
0 votes Thank Flag Link Thu Mar 11, 2010
Tim, Since you will not have much left over for the things you want in the new house have you considered the free$8k for buying before 4-30-2010? When you get the money it could be a help. Until then you could live in very sparse surroundings waiting for the day that you can afford something more. There is nothing wrong with buying a house and then getting a USED piece of furniture every month or 2 as you can afford it.

I am not saying to buy now. I am simply asking a question. When I finally buy a house I do not plan on immediately buying tons of furniture and other stuff for it. I figure I will buy some cheap used furniture as it becomes available and I can afford to buy it with cash. When someone asks me what theme I had in mind when I decorated the house I will reply " The green theme. When I had the green I bought what I could find that fit." Some might call it eclectic. I consider form over function. Later on when more money is available you can buy pretty and nice. Furniture never lasts forever anyway, so why worry about your starter furniture"?
0 votes Thank Flag Link Thu Mar 11, 2010
wow sharon you have a unique last name..... i do understand the importance of what everyone is saying. all i am saying is we were not planning to buy at this time but with a new child on the way our house is too small we can afford the down payment but then wont have much left over for the incidentals or anything new we will need for the house. We can afford the monthy payments besides the mortgage will only be aprox. $300.00 more than we are paying right now...... so why should we not buy and actually have something to show for our money. Also i didnt want to start a holy war and get everyone arguing
0 votes Thank Flag Link Thu Mar 11, 2010
This is a very simple answer. We've lived in the same house for over 10 yrs with no plans to move we gave our children what they need and want and we too spoiled our selves. Now we have annother child on the way and the house is too small. We can afford the mortgage, insurance, taxes, and any other problems that can and will arise. As Bob stated a mortgage on a 200,000.00 3000 square foot house is only about 2 to 300 more than renting so why not buy and have something to show for it.
0 votes Thank Flag Link Tue Mar 9, 2010
Do you have a 401k you can liquidate for the 3.5% down? A lot of the times this money can be withdrawn for a down payment on a home with no penalty....Just an idea
0 votes Thank Flag Link Tue Mar 9, 2010
we are buying in florida, i dont know how i messed that up
0 votes Thank Flag Link Tue Mar 9, 2010
Tim,

You can work out a sellers' concession with the seller. You wouldn't have to pay any closing costs and can use any available cash for your down payment.

You can also get a gift from a family member to help you with the down payment.

Another option would be to get a grant for the down payment, but you will have to take a much higher interest rate (6.5%) . It is a program called "Smart Start" for first time home buyers in the State of NJ. Follow this link for more information: http://www.state.nj.us/dca/hmfa/consu/buyers/ownprg/fact_she…

If you like you can call me to discuss.

Hope this was helpful.

Good luck.
0 votes Thank Flag Link Tue Mar 9, 2010
Hi,

Suzanne Hoffman is a mortgage rep in NJ with a lot of experience with FHA, VA and USDA. She knows the ins and outs of these well. You can reach her at 732-241-5177. Your profile says Ocala, FL, but this question is keyed to Edison NJ. I don't know if Suzanne works on FL loans. She is located in NJ.

Deb
0 votes Thank Flag Link Tue Mar 9, 2010
Deborah Madey, Real Estate Pro in Red Bank, NJ
MVP'08
Contact
Are you a veteran? If so a V.A. loan is a possibility.

If not I would get extremely serious about cutting my expenses and saving up more for a down payment.

Below is a blog explaining some simple ways ti build up your own down payment. I hope it helps.
http://www.trulia.com/blog/dan_chase/2010/01/how_do_i_get_a_…
0 votes Thank Flag Link Tue Mar 9, 2010
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