Can't asnwer your question, so I will answer something that is interesting about some posts here and there on the internet. The point is, generally; this is a question for the person representing you in this transaction.
The nature of Agency is that it is a very easy line to cross and many agents new and inexperianced agents don't even realize they have crossed it until there is a problem. Many instances here agents are giving advice on transactions that fall into the arena unpaid agency. They pick up some liability without compensation, and evne infringe on the agency of the compensated agent on record.
User, find a local agent you like and trust and ask them this question. They can explan how the contract and offers work and the factors involved in appraisals and value.... more
The middle number is the one used. You have a 837 score. That is excellent.
If you are grossing about $7,500 a month and have only $500 a month in debt payments that is a very small debt to income ratio.
The problem is you being on another mortgage. Technically being $400k in debt could remove you from buying your own home. (or at least make it a trailer only) The best thing would be to refinance your parents house and get you off the mortgage. Once that is done you could easily buy something yourself.
I am not a lender. I strongly suggest you see one at a bank or credit union near you and ask about your options. I suspect that having your parents refinance their house without you is needed for you to buy on your own. I could be very wrong.... more
kdude: In general, 3.5% down for FHA, 10% down w/PMI for non-FHA, 20% down to avoid PMI for non-FHA.
Also, there are two Tax credits to consider: the Federal $8K, and $10K CA tax credits for first time buyers. The later applies to new, never-occupied houses and condos bought between March 1, 2009, and March 1, 2010:
This chart provides an "old vs. new" FTHB Federal tax credit summary:
I would highly advise you go through the Pre-Approval process (which I can do for you):
Personally, in this market, I like the FHA program due to the benefits:
1) 3.5% minimum Downpayment.
2) Up to a 6% Seller Credit allowed for buyer's closing costs and Seller concessions (non-FHA max is 3%).
3) FHA requires that identified safety/health issues be corrected.
4) FHA allows up to $8,000 in financed energy efficient upgrades without negatively affecting borrower's debt-to-income ratio.
5) Cash reserves not required.
6) Upfront Mortgage Insurance may be financed.
7) Non-occupying co-borrowers are allowed.
8) High and flexible qualifying ratios.
9) FHA loans are assumable.
10) No pre-payment penalties.
11) Will consider "compensating factors" in determining whether a loan should be granted.
When using an FHA loan you will have to pay Mortgage Insurance for a MINIMUM of 5 years, or until you have paid your original LOAN AMOUNT down to 78% (not that the loan amount is 80% of current market value, which is typical for non-FHA MI removal). http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/00-46ml.doc
Given the current downward trend in home prices, and the fact your will have to pay the MI, why not keep your cash in an interest bearing savings account working for you? Only set aside this money in savings if it will actually be saved for this purpose!
If housing trends continue (downward, and I believe they will through 2009), the market will eliminate any additional equity you pay in over the 3.5% down. When the market improves and you do get more market-based equity, you could possibly pay down the FHA loan balance - or, refinance out of the FHA loan into another product that recognizes market equity in calculating whether MI is required, thus saving you this cost. Food for thought...
MBA, GRI, ABR, e-PRO, CMPS, RE Masters
REALTOR® / Mortgage Banker-Broker / Certified Mortgage Planning Specialist... more
I caught your post while browsing this website and thought I should provide you some answers to help.
I'm the RE/mortgage broker and our company provides the loan modification service (LM) to help homeowners save homes from foreclosures due to hardship, or mortgage shock... Our company is DRE approved for LM and work with bankruptcy, foreclosure attorney team for a complete solution to clients. Check out www.serviceloanmodification.com
For your questions, if 85022 is a recourse loan, yes, bank can go after your personal assets. No, if it's non-recourse (California law). If your bought home with a purchase money loan (not refinance, nor cash-out) usually it's a non-recourse loan. Check your note to confirm. In both short sale and foreclosure, a "profit" can report to you by bank for their loss (or your gain) if it's a recourse loan. Need to consult w/ CPA or tax advisor to work w/ IRS in that case. Short sale always is a better choice before foreclosure.
You might consider refinance 95134 to a low 30-year fix rate before get rid 85022 (damage credit).
If you need help refinance, LM, short sale, contact us firstname.lastname@example.org or email@example.com. (408)956-9230
In order to give you useful advice you really need to give us more information about your plans. Dealing just with the information so far it would be simple. Overall Evergreen is cheaper than Almaden which is cheaper than Cupertino. The same goes for schools. Overall evergreen is not as good as Almaden which is not as good as Cupertino.
What about the other 20 or so Cities and districts of the Valley?
Give us more to work with and we'll give you more useful feedback.
Alternatively choose a good Realtor who will be able to help you with all the multitude of different factors involved in you move.... more
Congrats on your teaching credential. What a great time to look to buy a home. Believe it or not, there are a lot of homes that you will be able to consider, in areas that I would personally live in. There is a lot to answer here, and I don't want to overwhelm you. The best thing for you to do is hook up with an experienced Realtor and go over the various areas and homes available. Take into account proximity to your new job, where your friends or family are, etc. Areas that I would consider include Cambrian, Blossom Valley, parts of Central San Jose (I know the good areas).
Remember, homes don't have any feelings, so if you drive up to see something and you don't like what you see from the outside, just move on. There are way too many choices for you to feel obligated to anything.
Have fun looking. If you need any references to lenders, let me know. I have a number of teacher clients, so I am familiar with the various programs out there, and you want to take advantage of everything you can.
Alain Pinel Realtors
good afternoon...you may not need the money from the city for a second mortgage.request two concessions from the seller, and go straight fha...the seller can provide two concessions to drive down the dollars you need to close, so you can keep most all of your money in the bank.....concession number one- request (up to 6%) of the sales prices of the home towards your closing costs and pre-paids..they won't run quite that much...also, reqest a 3% concession for the "Ameridream Gift Charity" program..Ameridream wires the money in to the title company for the closing, and their fee is only $500....the 3% is charged against the buyers proceeds at closing.....if you would like to talk.call me anytime (248) 806-0366 Bob McClure- Mortgage Now- Farmington, Michigan.i am licensed in california...and would be willing to finance your new home....... more