Click To View Links

FHA qualifying maybe??

by Lacy
(Aniwa, WI)


Okay, my husband brings in around $1,200/month net, he's the only one working because I homeschool our children.

My friend wanted to sell us her house, but it was appraised at 169,000. They would rather start the offer at 143,000, so that we have some home equity in it at the beginning.

They live in a very rural area, right next to a well-traveled road, (thinking FHA(203)(i) possibility).

My husband had a quick-cash loan that he co-signed for his brother that was appx. $2-$3,000. His brother seems to have made all the payments on time, but it's not paid off yet.

The two credit unions that I have an account with have told me that, roughly approximating my payments, it would be around 753.00 and thus, over the 60% they allow for debt.

My husbands credit was very bad to non-existant when we married 6 years ago, so his idea was quick cash loans to bring it up (because of his bad spending habits if he has any kind of money in his pocket).

He paid off the first, then borrowed again on it (they told him it would bring up his score if he did it again) but his interest rates there are incredible still!

We only have about $1,000.00 to do any kind of down-payment, but we really want my friends home (she kept it in mint condition, and is leaving behind many things with it because she can't take them to the new home they are buying).

They still owe about 70,000 left on it, but need to relocate for her husbands job. We need to move from our area, and are willing to sell our current mobile home to do so, but we don't want to end up with a white elephant of a home and have to put more income into it than what it's worth.

Please, what do we do???

Desperately searching,
Lacy

=====ANSWERS=====

Hello Lacy,

Thank you for asking questions here at my web blog. You gave great details to help me get the picture.

I'm afraid that based on what you have told me, this house is more than you can afford at this time.

FHA 203(i) would be a good loan if this house is in the rural areas.

There are certain qualifications you have to meet in order to get this type of loan.

Take a look at the link above to learn more on that.

The biggest issue you may face is the actual price of the home.

Perhaps you can buy the house for less or on a land contract if the sellers are motivated and need to get rid of the home.

Even a rent to own might be a way to try and buy it. Maybe you could rent it for 2-3 years with a portion of the rent going towards a down payment and then buy it later.

If you do that, be sure the home value is there and have any documents drafted by a legal professional and recorded for your protection.

Just some food for thought.

I wish you the best.

Please tell your friends about my website by share this page with them using the links below to Facebook or Twitter.

Kind Regards,

Jeff

PS Stay up-to-date with all that is new at First Time Home Buyer Solutions. Subscribe to the RSS feed at the bottom of the navigation bar over on the left.





Click here to post comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Ask The Expert.

New Jersey Grants

Click on Image to Learn More

South Carolina Grants

Click on Image to Learn More

Recent Articles

  1. FHA Lending Guidelines

    Jun 10, 17 02:58 PM

    According to the FHA lending guidelines, is it possible for escrow to be paid out of packet instead of rolled into the loan? What are the guidelines for a 2nd time home owner? These are answered below…

    Read More

  2. FHA Title 1 Loan Explained

    Jun 08, 17 08:15 PM

    Are you interested in the FHA Title 1 Loan program and wonder where to find a lender who works with this program? Others have wondered the same thing, find the answers on this page.

    Read More

  3. FHA Help

    May 26, 17 03:14 PM

    Would you like some FHA help? Perhaps you are wondering if it is wise to add a significant other to the mortgage? Or why a mortgage company would ask you to go conventional instead of FHA? Find answer…

    Read More

Buyer Programs

fha loans

The FHA Loan Products

Home Buyer Grants

zero down home loans

Zero Down Home Loans


Follow Us On Twitter

follow me on twitter