I have always loved historical buildings and had never owned a home, so when the apartments in the first skyscraper in Memphis went condo, I knew that was where I wanted to live.
I read in the newspaper that the condominiums were to be sold at an auction on the rooftop deck, and I did some research to find out if I could qualify for a loan. I learned that the only requirement was to bring a certified check for the down payment and that the winning bidders would be offered non-qualifying assumable loans. My mother gifted me with the money for the down payment.
I met the auctioneer at the open house which was held a week before the auction. He told me that the condos would probably sell for less than their appraisals. I needed a two bedroom unit and didn’t care which floor it was on. I only wanted a view of the river.
The day of the auction arrived. My mother and cousin met me downtown to check out the building before everything got started. We decided that the two bedroom condo on the 5th floor would be the best one for me.
We went to the roof where I registered and waited for the fun to begin. The penthouse was auctioned first and sold quickly. Two of the two-bedroom units sold for the same price. I started bidding after that and didn’t win.
Two more were sold. We were down to the 5th floor. I bid again and won! A few minutes later my mother looked at me and told me I was pale. I must have been in shock, and it was no wonder--I had never been to an auction before and had just made the biggest purchase of my life!
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…