Posts Tagged ‘20k

Will we be able to qualify for an FHA loan on another house?

Monday, August 31st, 2009

We’re living in a house now that I’m trying to fix up cosmetically inside the best that I can. It needs other repairs that I’m not skilled at doing, and I really don’t want to pay anyone to do them. We just want to try to get as much as we can for the house, pay off the mortgage somehow, and go.

53K left on the mortgage. I’m not sure how much it will sell for. It’s only a 2 bedroom and one bath, as well. I may take out a loan through a bank or something if it doesn’t sell for enough, to pay off the mortgage so we can go.

My mother only makes about 20K in her current position now (she has been with the company itself for about 8 years). I’m not sure what kind of loan she would "max out" with, even with FHA. She’s had a mortgage in her name for quite a long time and her most recent myFICO was 719. She’s a widow…so no husband to help with it. I am basically her son that has been trying to help her out with stuff around the house and financially. But, I’m not putting my name on a new mortgage as a cosigner just to include my income.

What kind of FHA loan amount would she qualify for if our current mortgage was paid off in full as a result of selling?

I’m thinking the best option is to sell what we have now, first. Because I know for certain that there is no way any company at all would give her a second mortgage with that kind of income, even with a decent credit history and mortgage history. We have another family member living with us now, so we’d be looking for a 3 bedroom, 2 bath house this time. We may look into foreclosures and such to try to get a better deal when we buy.

Is there any other information that you can give me about FHA loans?

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Shared Appreciation Note vs. FHA Mortgage?

Monday, June 8th, 2009

I am currently in the process of getting a mortgage. I need advice on the benefits and disadvantages of the following two mortgage types.

Standard FHA loan – using this loan, my pre-qualified amount will only allow me to buy a not so nice home in a less than stellar area. But, any and all appreciation in the home will be mine.

Shared Appreciation Second Mortgage – using this City funded program, the City will pay up to 60,000 over my FHA approval amount to get me into a nicer home in a excellent area. Using this option my down payment is minimal.

But, the Shared Appreciation Note has a catch. When I sell or refinance the home the City loan becomes payable, as well as 20% of any appreciation the home has gained.

So at this point I can either pay more upfront to get into the cheaper home, or I can pay more down the line using the City program to get into a much nicer home.

Any thoughts or suggestions?
The Shared Note has no time line. There is no minimum time one must remain in the home, and the second mortgage matures at the same rate as the first. In addition, should I do any work on the home, the cost of the work and the an appraisal value the added worth it gives the home will be taken out of the home appreciation prior to the City program factoring their 20%.

For example: if I buy a home for 150, using 20k from the City program, & after putting 10k worth of work into the kitchen, the home appraises for an addition 30k at 180k. If when I sell the home it goes for 250K, the home would have appreciated 70k since the original mortgage. Out of that, 30k is due to wortk I place in and as such is mine. From the remaining 40k, the City program would get its initial 20k back plus the 20% = Total of ,000.

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