Ask and Ye shall receive???

Question

My wife and I have horrible credit (I suffered a nasty break-up several years ago, and my ex-husband ruined my credit) We have great cash history, but have avoided credit. We are both employed and our combined income is 6500.00/month.We want to buy a beautiful house for our 4 kids, it's a 6 bedroom 3 bath in a great neighborhood, recently appraised at 505,000 but the owner will sell it to us for 450,000. He wants 300,000 and will carry the rest. We have no $ down, and a co-signer is not an option. Any advice or suggustions?

Answer 1

What you want to buy and what you should buy are entirely different.  

What if you finagle a way in only to find yourself being foreclosed on four years later.  Why on earth would you do that to your kids?   Is this a fiscally responsible decision?  Does it teach your kids fiscal responsibility?

People can blame mortgage companies all they want for the current crisis, but part of the blame lies squarely on people who make decisions like this.

Live within your means, not your dreams.

Answer 2

You will be paying more than half your monthly income in mortgage, tax, and insurance. And he will carry the rest in a balloon (calculate the true cost of that over its finance period).

Let's assume you are left with 3000 a month after the mortgage. From that...

after expenditures to bills and services (and food and such), lets say you're left with 1,000.00. That's not a lot of money. You've got 4 kids you will need to send to college one day.

Nevertheless, if you its a place you can call home and provide a nice childhood for your kids, then you can do so as you please.

The one thing you need to bear in mind as far as the value of the property is: short sales and foreclosures around the neighborhood, and a RECENT appraised value. It's possible to get a nice house for an irrationally low price due to the condition of the housing market. In other words, you might be able to get a similar house for less--although 6 bedrooms is quite nice (I assume the square footage is over 4000).

Your goal should be to have enough money every month to invest in order to augment your income and support the future endeavors of your kids).

Your bad credit might rob you of a pleasant loan price--do your homework and calculations!.

Good luck, if you need more advice, e-mail me.

I personally would not do it, unless this property qualifies as an amazing investment (which you will need to get rid of eventually).  

Answer 3

You need to find a mortgage, which means you will need some money to make a down-payment with.

Answer 4

$78,000 annual income, $450,000 home, no down payment, 4 kids? I don't think you can afford this place. You'll find out from the bank when you try to get a loan.  

Answer 5

well you can work the corner and your husband can go to the sperm bank, me n my g/f have done this n now live in a nice house in beverly hills california. jus make sure you get tested once youve the made the money you need, alot of  diseases out there. :)