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Mortgage Help!

fractal_empireApr. 4th, 2008 07:13 pm

Hey all, I've got a first time homebuyer question:

(I'm buying my first house. I'm 23, making $32,000 a year and want to get something around $90,000-110,000. My credit is good (~730), I have no debts, and I have $22,000 in my bank accounts.)

I'm looking at two financing options, and wondering if I'm missing something:

[b]Broker:[/b] Will take 3% down, will require PMI, closing costs will be $2,000-3,000, APY will be ~5.75.

[b]Bank:[/b] Requires 5% down, requires no PMI, will pay closing costs, APY ~6.125.

Assuming I'm not planning on pouring money into equity, I don't see how the bank isn't a phenomenally better option. If the PMI is $40/month, it seems like the broker would have to offer a rate that was ~7/8 of a point less just to make up the difference in monthly payments.

Is there something I'm missing here? Is the bank simply the best way to finance, or are there other factors that might make a broker a better option?

(x-posted)

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dimestorejesusDec. 12th, 2007 12:01 am Construction loans?

Hey guys...

I have a question for you. The community doesn't seem to be too active, but... fingers crossed...

My boyfriend and I have something in mind that we would like to do... hopefully in a couple of years, when we've had a chance to put together a reasonable downpayment. What I need to know is whether or not we can do this with a construction loan (that will change to permanent at the end of construction)... and if not, how we should go about it.

We want to buy some land -- not a lot, between 5-10 acres... just outside of town. We are hoping to find a loan that will buy the land, purchase and put a modular home on it, and then BUILD a six-stall barn on the property as well as raise fences.

Could this be made to work with a construction loan? Since the actual construction going on would be a barn and fencing, not primary residence (that would be the modular home, which we would need to finance through the same loan I'm assuming)...?

My head is spinning around.

The home would be an improvement over what is on "most" hobby farms in our area (mobile homes falling apart at the seams), but the big improvement to the property (and its value) would be in the barn and fences. Does that make a difference to a lender?

THANKS!

Current Mood: awake

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mena_immortalSep. 13th, 2007 10:44 am Mortgage Application Fee

Hi,

I appling  through my bank for my first mortgage. (keeping my fingers crossed). I have one question, they charge a $325 fee at the time of closing. Is this normal? 

Thanks

I am x posting to other housing groups. 

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crafty_in_nhAug. 28th, 2007 02:31 pm Trying to get out of a subprime

Hi,

I'm sure people are rolling their eyes at my subject line, its a common story these days :) . I want very much to get out of my subprime mortgage, and have tried to refinance in both traditional and non-traditional ways. I have signed up for quotes online, spoke to many lenders, and was turned down from all but one - Beneficial Financial. I think they approve everyone and their terms are not very good. Basically the reason why I didn't go with them was because it was a 40 year loan and they tried to deceive me into taking it before I knew all the terms and conditions...I don't like being lied to. Not to mention, I have two mortgages and they would only refinance one...and my monthly payments would be almost exactly the same as they are now for my first mortgage. That wouldn't help me at all.

The amount of my first mortgage is $140,000. My monthly payment is $1,467.49 (the rate just adjusted from 7% to 10.42% since I've now owned my home for two years). The payment includes $226.29 for escrow, and a $24.95 "shortage" payment, which they've never explained to me. I'm assuming its that my property tax has gone up. I don't pay PMI.

The amount of my second mortgage is $34,651.24 (wow, I've paid off a whole $348.76 since I owned my home! How depressing), and I pay $333.31 per month. The interest rate is 11%.

I also have a $215 condo fee. That brings the grand total to $2015.80. I make about $2200 per month. I am married but my husband is not on the mortgage, and he just recently (yesterday in fact) got a real salary paying job after being unemployed for three months, and before that making very unstable income as a self-employed contractor. We have no savings. And aside from my mortgage, I have about $15,000 in personal loans, $2000 in credit card debt, $28,000 in student loans (currently in forbearance due to financial hardship, for six months), and a car payment with my husband's credit union for $340 per month. So we are in the red every month, but hopefully with my husband's new job we will slowly start to get back on track. He'll be pulling in about the same amount as me per month ($2200).

We've tried to talk to lenders (as I mentioned), got rejected from about 10 of them in the past several months. We also tried to work with a non-profit organization called NACA (Neightborhood Assistance Corporation of America) whose mission is helping people out of their subprime mortgage. Their first priority seems to be low-income people (understandable), but aside from that we were disappointed to learn within the first ten minutes of a meeting we had with a financial counselor (which took three months to get) that since we were in the red every month, they would not help us refinance. They actually recommended we immediately stop paying our mortgage and save money, go through a short sale, live in a cheap apartment for a year, and then come back to them to buy a new home (they help people within a year to buy a home after foreclosure or short sale, at 6% interest rate). That isn't an easy decision, but I decided I wasn't ready to give up. I like my home and want to stay in it.

The kicker is that my credit is fair, despite years of paying off old debt and being current with all of my bills (amazingly). Despite my difficult situation, I have not been a full month late with my mortgage payment. After filling out a financial hardship form with them though to let them knew that my husband was unemployed (at the time he was), and that I anticipated having great difficulty paying my mortgage -- I am on their radar now. They haven't offered one single resolution and refuse to do so, they are pushing for a short sale even though I'm current with my mortgage, and if don't pay them right on the first they call me every single day to try to get me to pay it. I refuse phone calls up to about 10pm at night... and they call about every hour. My mortgage is currently being sued for unfair business practices.

Another thing to note... my home is also only worth only $165,000 at best (a unit next to mine just sold for that much), which means we agreed to pay too much. We ended up dealing with the seller's boss' mortgage company at the 11th hour two years ago... and after numerous appraisals she got only one person to appraise our home for exactly what the seller wanted. Hindsight is 20/20 and we shouldn't have bought it, but I loved the home. My emotions got in the way I guess.

So in short... I want to get out, and into a better situation. Everyone has told me that I have no choice but to foreclose or do a short sale, but I refuse to believe that. Unfortunately every lender who claims to deal with people with less than perfect credit and be able to get anyone a loan.... seems to be lying, because I've been turned down from every one I tried.

I know this is a long babbling message... but any advice would be greatly appreciated.

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surlygrrrlyJun. 4th, 2007 11:56 pm Mortgages and deferred student loans

1. Name: Zeph
2. Location: Mid-Ohio
3. Age: 37
4. Family status: Myself and my partner


Has anyone had or know of issues with deferred student loans when trying to get a mortgage? We have been outright rejected, or have been offered a horrible deal because I have student loans that the lenders are counting as current debt, despite the fact they are deferred. This gives us a negtive D/I ratio.

We want to put down 5% or less (or else we will have no money to fix up the house) and are asking for a quite reasonable loan amount. I have EXCELLENT credit and no debt except for the student loans, and my partner has good credit and relatively minor credit card debt. Student loans are deferred for 6-9 months after graduation and repayment programs are based on the situation at that time. However, on my credit report, my student loans are showing up deferred, with an anticipated  monthly payment of 1250 for 6 1/2 years. This is unrealistic and inaccurate, but the banks are only going by what the report says, not the reality of the situation. They say they "have" to look at "worst case scenario"-- that we will not be able to make those payments if we cannot find jobs after we graduate. Well, this is stupid for a number of reasons, but primarily because federal loans can be deferred until one is actually able to pay them. 

This just doesn't seem right to me. There is a way around everything, it just has to be discovered. So, does anyone have any insight into this situation?

Thanks!

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xihateyourxMay. 24th, 2007 11:06 am

what is the line between something being suburban and rural?

we have closing in 7 days and our loan officer just told us there's a problem because one appraisal says rural and one says suburban. apparently - even though no one told us this in the last 3 months if it IS rural then we need twice the downpayment

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xihateyourxMay. 11th, 2007 10:24 am

our closing is set for the 31st and our bank has given us approval pending a second appraisal.....which they haven't scheduled yet - are we cutting it mega close or am i over reacting by being retarted nervous???

Leave a comment

xihateyourxApr. 30th, 2007 01:04 pm VOR

what kind of questions will a bank normally ask when they call a landlord with a VOR.

my mortgage guy told me he has approval for the loan contingent on the VOR (we paidin cash so we had to fill out a form and he said that they're going to call the landlord) and the appraisal which came back at $31,000 higher than the loan amt.

what are they waiting for to call?
what are they going to ask?
do they just want to hear a real person verify what the paper said?


im just nervous and restless.



x-posted.

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xihateyourxMar. 15th, 2007 10:45 am lots o' questions! FUN!

mortgages are AWESOME!
ok, ok here's the basic rundown.

we have a relatively new business. We've actually been doing business for a year, but just started working under our own business lincense as a single person LLC. It's a horse-related business and doing fabulous. My husband has had a steady job for about 3.5 years and also doing GREAT.
I have awesome credit, he has not so awesome credit.
We want to buy a property that is 60 acres with a totally adequate house for us and almost everything we'd need to relocate our horse-related business.

We've decided that our budget (amount we'd need to borrow)is somewhere around $500,000 - we've been pre-approved/ qualified for a mortgage of that amount.

This is my first time dealing with something like this and so a lot of questions are coming up because apparently its a kind of complicated and special situation.

I am applying alone without a co-borrower because my husband is pretty convinced that his crappy credit (from about 5 years ago that is still repairing itself) will really screw up our chances for this (as it did when we were buying our truck).

However there is that whole problem of me not really having great documented income. The income that I do have fluctuates as clients come and go and horses finish training and come into training, but it is always enough to pay our estimated mortgage payment on $500,000.
Of course my husbands income helps too, but I know that lenders can't consider that because he's not a co-borrower.

So I'm sort of confused on the types of documented income vs. stated, vs. no doc.
What will I need? Which one is best? and how do the types affect the APR and types of mortgages we can get?

Also, I have been told that there are only certain types of mortgages that we can get for a property of that size - 60 acres. How does this affect us?

Then there is closing costs. We have the money for the down payment, but that basically wipes us out unless we deplete everything that we know we'll need to operate and live and settle in for a few months. I was told that that can be wrapped up in the mortgage by sort of saying that the price is higher - so how do we best express that to the owner/realtor so that they understand that our offer is actually $xxx,xxx but we're going to pay them more and then I guess recoup the closing costs so that we can pay them? totally confused.......




i know that's alot for you guys to read and help me with, and i know it sounds like I'm totally clueless, but I am. I have a few people helping me, but I am horrible on the phone and need someone to explain it to me who has nothing to gain.
It seems like there are so many options out there that there has to be something that will get us this property (which I am head over heels in love with as is my husband).......right?
but being so many types (interest only, jumbo, combo etc. etc. ow my head!) I am just getting more and more confused!!!!!

anyways I'll take any help you can give me!!!

(x-posted)

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neoqbaccaFeb. 23rd, 2007 11:20 pm

Hello.

My boyfriend and I are getting ready to buy our first home. We're interested in loan programs called "equity accelerators" that are described in this article.
http://www.bankrate.com/brm/news/mortgages/20061102_equity_accelerator_mortgage_a1.asp

It says there are 2 companies that offer this type of loan, Macquarie Mortgages USA, where it is called the Macquarie Asset Manager, and CMG Financial Services, whose offering is called the Home Ownership Accelerator.

We've spoken to a couple lenders at different companies, but none of them have offered this type of loan to us. I think that not all loan officers can give you this loan.

Does anyone know where I can talk to someone who can get us started?

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