Trying to Get A House!!! Please Help?

Question

Hello i am a 22 yr old single mom wanting to get into a house. i have did research but i want to know first hand from people on here who have a home that is mabe rent to own. was it diffucult? what is a good down payment. i am not married either. whats a good monthly income to even think about getting a house please help. i want a house so bad but it just seems to daunting!!! your advise will be appreciated!

Answer 1

It really depends on the amount of house you wish to purchase, your credit, the amount of money you are putting down and the type of mortgage you have been approved for. I would not look at homes until you know the amount of money you were approved for. When you know the amount you can afford you can look within that price range.  Also, the state you live depends on the housing market. In Michigan we no longer do the "zero down" for mortgages so buyers need to put at least 5% of the purchase price down. Mortgages can be calculated by your yearly income. For example if you make 50,000 a year you can afford time and a half which means 125,000 house. I hope this information helps!

Answer 2

Nothing in the world could be easier than buying a house.  You need to have some money in the bank so the lender knows that you are good at saving money.  You need to have a job so the lender knows you have money coming in to pay your new mortgage payment.  If you have good credit, you will pay 6.5% interest.  If you have bad credit you will pay 9.75% interest.    

One local lender here in Phoenix approves loans in 48 hours.  It's fun. You can make an offer on a house on Monday.  You are approved for your loan on Wednesday.  You move in on Friday.   On a $100,000 house, the seller doesn't care if you put $97,000 down and borrow $3,000 .... or ... you put $3,000 down and borrow $97,000.   Just so long as she gets her $100,000.

You could be in a house by this time next month.

Answer 3

I think some are misunderstanding your question______-I dont know your area either but in our area you can get an average home for about 3000 down  and make monthly payments for it.  We did it once selling wise.  The 3000 down was to help with legal fees (well advised) and left us a lttle extra.  Legal fees were around $500.  Back then we sold it for $350 a monthly.  It is called owner fianced (or on contract).  A lawyer will even check out your clients for you.  Basically the person was taking over our house payments.  They also had to keep the upkeep up and the taxes and insurance.  We set it up through a bank to collect and they and the insurance company and or tax clerk sent us notice if they did not pay.  It just safe guarded us.

It really depends on the person selling the house how much they want down.  I knew someone recently who wanted 1700 down and $450 a month.

Try asking relators if they know of one or look in the paper.  Also put an ad in the paper you are looking for one.

Some people will sell this way because the market is so bad or they really need to get out from under it.  If you default or dont pay the insurance and taxes, they can legally take the house back from you just like the bank.

Answer 4

wow-- you need to add up all your monthly expenses that show on your credit file. then your house note with taxes and homeowner divided by 12 added in with these should be no more than 41% of your gross salary at the highest. If doing a land contract ALWAYS PAY ON TIME AND BY CHECK ONLY!!!!

So when you can get financed by a bank there is a paper trail

Also have the note executed in front of a notary and keep a copy in a safe place in case any thing shoould arise until you get bank financing

Good luck

I am a mortgag banker in TN & KY

Answer 5

Consider an alternative......

Say you keep renting and live where you want to live.

You buy a house that is very rentable. Preferably with a downstairs bedsit area you can rent out separetly. You rent out the whole house and it pays your mortgage.  As the years go by, the house increases in value and rent increases. Now you are getting an income from the house. Perhaps you refinance and then have the deposit on another house and then you have two rentals.

I did this and I'm a single mum with four kids. 6 houses now.

Answer 6

A house at 100K will cost you about $800 per month for a mortgage payment, insurance and taxes (that varies depending on your credit score and what the tax rates are in your area).

That means you need to make at least 2,500 per month if you have absolutely no other bills.  If you have other bills, you need to make that much more.  If your credit is not over 680, expect to bring at least 15% or more down payment, so you need 15K-20K in the bank.

If you have kids, save save and get out of renting.  Owning is best so that the kids have a solid foundation and don't have to move to a new apartment once a year when your lease is up.

Answer 7

WAIT

Don't get in over your head--most common problem of first time buyers

1/4 of your income is rule of thumb for housing costs:  renting or buying  and NOT more than 1/3 for housing and utilities and taxes and maintenance

Don't know housing prices in your area, may be you need to think townhome or condo first rather than house, although may be possible

To qualify for loan you need good credit and down payment

BUILD your credit, pay all bills in full and on time, pay down credit cards, pay off student loans on time, don't use credit for anything you can't pay off when bill comes due,

SAVE for down payment:  FHA requires 3% down, to avoid PMI you need 20% down

Planning ahead is good.  I'd recommend renting now and planning on buying next year when everything is lined up.  Rent to own can be a good option, but have an attorney go over the contract with you.  In a bad housing market like this one, Rent to Own properties are more prevalent.  Best of luck!

Answer 8

Rent to own.  The banks will not take all your rent as a down pymt.  The difference between the rent you pay and the going rate is what will be considered towards your down payment.  Your rent to own agreement will also be taken into consideration.

If the going rate for rent is $1,500 and you're paying $2,000 a month per rent, the bank will consider $500 per month towards your down payment.

You typically have a time line in which to purchase the home after renting.

With the guidelines the way they are, 20% down is a good down pymt, avoiding PMI.  Single mom has nothing to do with underwriting a file.

Figure 3-4 times your payment for a good income.  Standard guild lines for debt to income (DTI) is 28%/33%.  That means 28% of your gross income is the max housing payment.  This will include principle, interest, taxes and insurance (PITI) and HOA fees if any.  The 33% is the PITI plus any revolving and installment monthly debts.

I have yet to be able to approve a rent to own.  Renter/buyer could not document all the requirements.  The most missed item is being able to document going rent for the home when you started renting and when you purchased if there is a hugh differance.  A realtor may be able to pull this info off the MLS.  But you need to get the documentation now.

Answer 9

I was 25 at the time I purchased my first condo / home. The first thing I did was just looking for fun at homes on various websites before I ever imagined I could accually own one.



So I found a condo in a price range that seemed like something I could afford and was in an area I liked. Take your time and have fun with looking !

I got intouch with a realtor that could answer all of my questions and help me maybe get into my first home.



Remember just because you are interested in a home , that doesn't obligate you to anything.  

Have the realtor that represents you pull your credit , check out what banks may " pre-approve " you for a morgage. It's just a pre-approval. That also will give you an idea of what price range to look in.

Your realtor can give you an idea of what your payments , interest , type of loan , how much to maybe put down...ect ect.

If you have decent credit but not much to put down , some banks or loan institutions may do a 80/20% loan.

This in simple is two loans ( a first and second morgage ). Your first morgage for 80% of principle and second for the last 20% , because for instance you couldn't put down alot , they just split the principle in two since most banks don't finance 100%.

Anyhow a realtor is going to answer all those questions for you and help you with what your options are.

Hey , remember you have nothing to lose by trying !!!

Go for it !!!

Some people have had their homes listed so long on the market they are almost desperate to sell it. Make this work in your favor. When you get to that step to make an offer , have the seller buy your 1 yr warranty on the home. So many things you can use to your advantage. As you being the buyer , YOU are the customer! Thats leverage for you.

When the seller can sell the home and you can buy , it is a win - win for both sides. And also for your realtor and the sellers realtor. Everyone wins.

I wish you the best of luck because I can't begin to describe that feeling walking out of closing knowing it's your home now !