First,

lets see how much house you can buy.

there is a 100% financing program available!

Give me a call, free, no hassle!

Michael - 225-291-9700

Dear Crystal, I am an agent here in Zachary, LA. I can give you the full run down on properties in our community as well as SOME mortgage options. I completely agree with the prior post. In regards to what to buy... you are not alone in wanting a home with some land. Everyone in our area wants 2-3 acres and a home for less than 220k (including myself). Unfortunatly, it is not available. Housing prices are HIGH in our neck of the woods, between the top rated school system and Post Katrina. There really isn't anything available until you hit around 185k. You can get the rare jewel that hits the market for between 145k -165k but you have to be ready to move. There are some resales in Marita Terrace and Fennwood area that offer you the larger lot and the nicely treed yards, the downside is you get an older home that is not updated and will not increase in value like a newer subdivision. They have some great new construction (usually running at 126.00 sq ft) that you can get a deal on right now. There is a surplus right now and builders are sitting on their inventory. You get a new home, will usually build equity quickly, but you get smaller yards and a lot with no trees. ACREAGE is just not there. For example, there is approx. 4 acres for sale in a flood zone near pride port hudson for 100k... Now if your looking to build your own home, you can buy a "lot" in some of the new construction neighborhoods.... I'd be happy to send you some information on older homes, new construction, lots, and what land is available and at what price once you find out your financing options. As far as government programs. Bond money would probably be your best bet. However, there are stipulations and "there has to be some left.".. Once again that can be explained in further detail. There are some great mortgage people out there that can help. With a little bit of information they can let you know what you qualify for and what programs are best for you. I work with several people here in Zachary and in the Baton Rouge area. If you would like some direction or assistance in speaking with a qualified lender, please feel free to call, I'd be happy to help. You can reach me via my cellular at 225-302-1551. Hope this information was helpful.

From a lenders point of view, you will need to first identify what's most important to you regarding purchasing a home.

New Construction is a completely different egg than buying an existing home. There are basically two different types of new construction --

First, the contractor already owns the land, has plans but will build to suit buyer, is financing the build himself. As the buyer you would only need to secure permanent financing to close after construction is complete. This is almost as easy as buying an existing home.

Second option, you hire an outside contractor, you purchase your own land, and you get a construction loan to cover the costs. This is a lot more leg work, especially for a first time homebuyer. You will still need to secure permanent financing -- if you choose to go this route -- I would purchase the land before you get the construction loan. The land loan can be rolled into the construction loan -- but purchasing the land first allows the final loan amount on the permanent financing to be based on actual appraised value and not costs to build. It gets more complicated, call me to discuss.

You really need to get pre-approved to learn more about your options. There are different loan types and programs out there to support a first time homebuyer -- and with a good mortgage broker they can explain the benefits and pitfalls to each situation. The pre-approval process starts with completing a loan application. We could help you with that over the phone and get you started today.

We can work with anyone in Louisiana - and we love first time homebuyers. Go visit our website for some more useful information concerning mortgage options.

Crystal, before you start your search for a home you need to meet with a lender. Discuss your situation with them and let them tell you what you qualify for. In some instances, you might be able to buy more than you can afford monthly. Best of luck.

If you build new would you build yourself, hire a general contractor or be your own general contractor and hire your own subcontractors? Financing is a major issue if you build ground-up. Lenders have tightened guidelines for all areas and have been even tighter on new construction because if anything goes wrong they have to take possession and sell an unfinished property. Construction loans are more costly. It would be wise to negotiate your construction and perm loans at once.

In this climate I would buy land to hold then buy a house at a discounted rate while the market is soft, live in the house while riding out the market. Let your equity build in the house until the market gets stronger and the lending guidelines loosen then either sell the house and use the profit to build on the land you already purchased at a bargain or refi the house using the equity to build the new house and keep the first as a rental.

The soft market is not a bad thing if we are patient and use good strategies.

Do your own homework,negotiate a good deal, hire a real estate attorney and pay your attorney by the hour.

If one purchased a 300K house a 6% commission would pay 18K in fees. A real estate attorney would take care of the contract (standard form) and close for a whole lot less.

To add to this question...and to clarify how things really work in real estate world:
1) The commission one sees is variable...and often appears as 6% in our state. This 6% does not go to the agent. Generally this is split:
1) 1/2 goes to the selling BROKER
2) 1/2 goes to the buyer-client BROKER
Then whomever is the agent working for the BROKER will get 1/2 of the 3%.

Now if there is dual agency involved, such as when the listing agent both represents the buyer and the seller/there is only one agent involved this equates to only one broker.

In this case, based on an example of what appears to be 6% to the agent, the agent may only be making 3% - 1/2 of that 6%.

If another agent is involved, that selling/listing agent now may make 1/2 of that 3%. so they effectively make 1/5% of the transaction.

All said and done, the misconception that Realtors are making a bazzillion dollars on the sale of your home is not always the case. Be very careful when one makes such assumptions for it can hurt you in negotiations from either buyer or seller side.

This is why it is very important to have a knowledgeable Realtor who understands the Real Estate code and how to communicate this to the average person who does not practice Real Estate for a living.

1) Have a plan
2) Have a process.

Your best option may be to get an existing home in an established neighbourhood. In Zachary...this could be a raised older home that is in decent condition where you can live in it, and upgrade a little bit at a time.

1) Sit down with a financial professional such as a mortgage broker to understand first what you can afford.
2) Establish in writing your NEEDS, WANTS and WISHES in that order.
3) Now start looking to see what you can truly afford by finding a qualified Buyers Real Estate Agent who can identify #2, with a budget made in #1.
4) Narrow your focus to reality within a timeframe.

Do not make your decision based on 3rd party assumptions such as govt help. You have to have your own basis first,,,,such as how much cash you have, what assets you have and so on. Then once you understand clearly #2, then you can start looking for options to getting assistance based on your needs.

On my website details costs associated with building in our region. This can help you clear your mind as to what direction you need to go in.

Louisiana law allows an inspection period in which you have 10 calendar days from the time a contract is accepted to perform inspections of the property. Whatever type of home you choose to purchase, I'd strongly suggest you hire a licensed inspector. The inspector will check on all the major systems (A/c, plumbing, electrical) and components (appliances, windows, doors, roof, etc.). The fees are based on the square footage and they will produce a report for you detailing any deficiencies as well as the implications of not correcting them. This is to ensure that you know what you are getting - if significant problems turn up, you can renegotiate the price and/or ask the sellers to make repairs prior to closing.
I do agree with Thomas that you should not neccessarily spend as much as the lender says you can, but rather go with what payment (including taxes and insurance) is comfortable for you. There are some FHA and VA programs that can get you into a home with less than 10% down. They do have strict requirements regarding the condition of the property. Talk with a lender who handles these programs. The lender will help you determine if you qualify for any special programs as well as determine your price point.
Not all realtors will push you into a home you can't really afford just for the commission. FYI the buyer's agent and seller's agent have to split that 6% and also give about half of that to their sponsoring broker. When you get down to it, the buyer's agent get 1.5% of the purchase price (that's before marketing expenses). That being said, a $25,000 increase in price results in only an extra $375 to the agent. Not much incentive to risk a deal falling apart when the buyer gets cold feet!
If you need references for either inspectors or lenders, please feel free to contact me (kracine@kw.com). While I specialize in St. Tammany Parish residential property, I do have a lot of contacts in the Baton Rouge area as well. I'd be happy to help you find an agent in your area whose personality and values match your own.

Examine school systems. Even if you don't send your kids there it will increase value of home to be close to a decent school. Come up with 10 percent of downpayment for house price, maximum, you may be willing to buy. Examine your debt load and find tool to amortize what your payments would be for house on 30 years fixed interest rate. Your credit may be good and some may even push a sale on you that your debt load may not support. A good rule is to never allocate more than 50% of your monthly net income to bills. Make sure any deals "Too good to be true" are not in flood zones. You may find websites that can give you the elevation of the property a potential house is on. From Zachary area, be mindful that getting closer to the Amite River brings some flood zones. Call an insurance company and see what they will give quotes on for house insurance for the home you may be looking at. Sales agent aren't always going to negotiate price down as far as owner will go easily, They, generally, get a six percent take. Therefore they want to keep it as high as they may. When you are looking at a potential home, do more than look at the house and property. Go speak with neighbors, you will have to live with them as neighbors and after you move in is a bad time to find out they are bad neighbors. Don't put yourself in danger but ask the neighbors if the knew former occupants. Ask them why they moved. Sometimes it is due to divorce and the sales agent will not disclose this. If it is due to divorce both parties are living on less means and you can negotiate down pretty far, especially if it has sat a while. The house I am living in was listed at 160,000 and I got them down to 134,00 because I did the things listed. It will be a constant back and forth between your agent taking your offer to seller and seeing if they will accept. You should start out low and only inch up slowly, allowing them to sleep on it a while or until they declare their bottom price. These are a few things to consider. Write me if you want to talk about it more. Best hopes, TFree79665@aol.com