Yes that may be possible. I am working with a client right now with the same issue. He also becomes a first time homebuyer again in July, having not owned a home for three years. This qualifies him for the $8,000 stimulis money. If this home is bank owned, 99% chance they will not rent. If the owner has the capability to let you move in and rent till you have downpayment funds, you could do a short term rent to own, assuming the seller agrees with this. They may need the proceeds on this to buy another...........Update here.....I just pulled this up on our listing system and it's subject to a short sale. It is probably not in the position to be rented at this time. On an FHA loan, you only need 3.5% of your funds, in the bank, to purchase which is $2,625. Closing costs can be worked into the deal so you don't pay out of pocket. At closing you will get a credit for pro-rated taxes. The listing indicates $1,700 semi annual. If correct you would get a credit for $3,400 +/-. You would walk away with money...... Plus if this is a first home, you will also qualify for the $8,000 tax credit. $3400 annual taxes seem real high so these numbers look off. I would need to verify they are correct, but if true, you could get in this home by financing all your closing costs, put $2,625 of your own money into it, and recieve your $8,000 credit and the difference of the pro-rated taxes and your downpayment. So if you can scratch up your 3.5% downpayment, which might be available in a gift form by FHA guidelines, you could be looking at an $800 payment range and getting $8,000 to boot. Payment will be much lower if taxes are incorrect. Ther should be about 1.4% of your assessed value. Tax assessor says home is $112,200. Sounds like a good situation if you like the home. Call me at 317-590-8783 and we can talk more.
Eric Karrfalt. F.C. Tucker Co.