Ss Brewing Technologies Giveaway!

Home Brew Forums > Home Brewing Community > General Chit Chat > Who's bought a house recently? Looking for info
Reply
 
LinkBack Thread Tools
Old 03-21-2012, 02:56 PM   #1
TheMan
HBT_SUPPORTER.png
Feedback Score: 22 reviews
 
TheMan's Avatar
Recipes 
 
Join Date: May 2009
Location: Illinois
Posts: 2,967
Liked 325 Times on 242 Posts
Likes Given: 2

Default Who's bought a house recently? Looking for info

I have not talked to any lenders or anything, figured I'd do some preliminary research before going in completely blind. All the reading in the world doesn't truly prepare you without hearing some other perspectives from real folks, and you guys/gals are a great source for info.

Is 3.5% still the lowest possible down payment? I have checked the FHA site and I think I read this correctly.

Anyone have any tips for buying?

__________________
TheMan is offline
 
Reply With Quote Quick reply to this message
Old 03-21-2012, 04:03 PM   #2
MalFet
/bɪər nərd/
HBT_LIFETIMESUPPORTER.png
Feedback Score: 1 reviews
 
MalFet's Avatar
Recipes 
 
Join Date: May 2010
Location: NYC / Kathmandu
Posts: 8,208
Liked 1232 Times on 819 Posts
Likes Given: 561

Default

Quote:
Originally Posted by TheMan View Post
I have not talked to any lenders or anything, figured I'd do some preliminary research before going in completely blind. All the reading in the world doesn't truly prepare you without hearing some other perspectives from real folks, and you guys/gals are a great source for info.

Is 3.5% still the lowest possible down payment? I have checked the FHA site and I think I read this correctly.

Anyone have any tips for buying?
This kind of stuff varies significantly by region. I can't speak to Illinois, but I do have experience in nearby Minnesota and Wisconsin. It may or may not be a similar situation. I personally bought a house a few years back in NYC, but the situation here is probably very different.

3.5% mortgages are legal, but they're quite hard to come by in my experience. Typically, you'll need mortgage insurance (BPMI) if you put down less than 20% these days. That's certainly plausible, but it ends up jacking your rate significantly. Interest is ridiculously low right now, but it would be worth playing with an amortization calculator to see how much of a difference a couple of points can make. Just off the top of my head a 30-year $300k mortgage goes from $1400/month to $1600/month with an extra 1% for mortgage insurance.

Make sure you check out the cost of property taxes in your area, too. Those are often a surprise for people thinking of buying. Good luck! It's a good feeling to have if you can make the financials work out.
__________________

"Be excellent to each other." -Benjamin Franklin

MalFet is offline
 
Reply With Quote Quick reply to this message
Old 03-21-2012, 04:09 PM   #3
IXVolt
HBT_LIFETIMESUPPORTER.png
Feedback Score: 0 reviews
 
IXVolt's Avatar
Recipes 
 
Join Date: Apr 2009
Location: Southern Oregon
Posts: 1,730
Liked 78 Times on 53 Posts
Likes Given: 76

Default

I bought another house 3 week ago, and as MalFet said, it does vary a lot by region. There are still 0% down loans where I live, but the criteria for those is very tight.

I ended up getting a 30yr fixed at 3.875% with a 3.5% down on my new house. Which is a 50year record low for interest rates.


Biggest/best piece of advice is to just find a reputable loan broker and see what's available. I would suggest someone local to your area that you can meet face to face.

__________________
IXVolt is offline
 
Reply With Quote Quick reply to this message
Old 03-21-2012, 04:16 PM   #4
MalFet
/bɪər nərd/
HBT_LIFETIMESUPPORTER.png
Feedback Score: 1 reviews
 
MalFet's Avatar
Recipes 
 
Join Date: May 2010
Location: NYC / Kathmandu
Posts: 8,208
Liked 1232 Times on 819 Posts
Likes Given: 561

Default

Quote:
Originally Posted by IXVolt View Post
I bought another house 3 week ago, and as MalFet said, it does vary a lot by region. There are still 0% down loans where I live, but the criteria for those is very tight.

I ended up getting a 30yr fixed at 3.875% with a 3.5% down on my new house. Which is a 50year record low for interest rates.


Biggest/best piece of advice is to just find a reputable loan broker and see what's available. I would suggest someone local to your area that you can meet face to face.
Crazy, man. My sister and her husband are buying a house in Oregon right now, and they can't find anyone who will give them an uninsured loan for less than 20% down. They've both got great credit and little debt. Plus, they're doctors, so their job security and income prospects are solid. Then again, they're in Portlandia, so maybe it is all different there.
__________________

"Be excellent to each other." -Benjamin Franklin

MalFet is offline
 
Reply With Quote Quick reply to this message
Old 03-21-2012, 04:16 PM   #5
GilaMinumBeer
In yo' garage, steelin' yo parts.
HBT_LIFETIMESUPPORTER.png
Feedback Score: 0 reviews
 
GilaMinumBeer's Avatar
Recipes 
 
Join Date: Jan 2008
Location: Oblivion
Posts: 47,643
Liked 4745 Times on 4380 Posts
Likes Given: 59

Default

I have bought two houses in my life thus far. Both are FHA loans. I've never had a down payment and my closing cost were always minimal.

I am currently involved in a refinancing FHA streamlined. Looking down the barrel at 3.75% and no fees. Only have to bring some escrow payment and payoff demand to the table to close.

__________________
GilaMinumBeer is offline
 
Reply With Quote Quick reply to this message
Old 03-21-2012, 04:17 PM   #6
nutty_gnome
HBT_SUPPORTER.png
Feedback Score: 0 reviews
 
nutty_gnome's Avatar
Recipes 
 
Join Date: Jan 2009
Location: NJ
Posts: 1,087
Liked 46 Times on 38 Posts
Likes Given: 12

Default

If you don't want to meet someone face to face just yet, call GMAC or one of the big lenders and see what your credit score and income allow you to afford.

__________________

N_G
It could be worse.

nutty_gnome is offline
 
Reply With Quote Quick reply to this message
Old 03-21-2012, 04:24 PM   #7
TheMan
HBT_SUPPORTER.png
Feedback Score: 22 reviews
 
TheMan's Avatar
Recipes 
 
Join Date: May 2009
Location: Illinois
Posts: 2,967
Liked 325 Times on 242 Posts
Likes Given: 2

Default

I have read similar to what you guys are saying. My credit is through the roof and I have zero debt, so if it's possible to get a lower down payment I would think I'd be a candidate. Nothing is guaranteed though.

What are your typical closing costs and everything else associated with the purchase? I realize it is region specific, but like I said in OP, real life experience speaks for itself when you're comparing to reading.

__________________
TheMan is offline
 
Reply With Quote Quick reply to this message
Old 03-21-2012, 04:29 PM   #8
IXVolt
HBT_LIFETIMESUPPORTER.png
Feedback Score: 0 reviews
 
IXVolt's Avatar
Recipes 
 
Join Date: Apr 2009
Location: Southern Oregon
Posts: 1,730
Liked 78 Times on 53 Posts
Likes Given: 76

Default

Quote:
Originally Posted by MalFet View Post
Crazy, man. My sister and her husband are buying a house in Oregon right now, and they can't find anyone who will give them an uninsured loan for less than 20% down. They've both got great credit and little debt. Plus, they're doctors, so their job security and income prospects are solid. Then again, they're in Portlandia, so maybe it is all different there.
The zoning makes a big difference in the loan structure type. I could have qualified for the 0% down, but my income pushed me out of that category.

I'm just outside of the city limits which makes a BIG difference.

I've bought 4 houses to date, and the low prices of housing coupled with the insane interest rates makes for terrific opportunities. However the loan process is SUCH a PITA now, it's absurd!
__________________
IXVolt is offline
 
Reply With Quote Quick reply to this message
Old 03-21-2012, 04:32 PM   #9
IXVolt
HBT_LIFETIMESUPPORTER.png
Feedback Score: 0 reviews
 
IXVolt's Avatar
Recipes 
 
Join Date: Apr 2009
Location: Southern Oregon
Posts: 1,730
Liked 78 Times on 53 Posts
Likes Given: 76

Default

Quote:
Originally Posted by TheMan View Post
I have read similar to what you guys are saying. My credit is through the roof and I have zero debt, so if it's possible to get a lower down payment I would think I'd be a candidate. Nothing is guaranteed though.

What are your typical closing costs and everything else associated with the purchase? I realize it is region specific, but like I said in OP, real life experience speaks for itself when you're comparing to reading.
I have the seller pay for 100% of the closing costs, so I don't have to come up with it out of pocket.

So lets say the closing will cost around 5k. If you are buying the house at 200k, you can agree to pay 205 for the house and seller covering the closing costs. Essentially wrapping the closing costs into your loan.

But in this market I would low-ball and require seller to pay for all closing costs.
__________________
IXVolt is offline
 
Reply With Quote Quick reply to this message
Old 03-21-2012, 04:38 PM   #10
rhamilton
Feedback Score: 0 reviews
Recipes 
 
Join Date: Sep 2011
Location: Austin, Texas
Posts: 1,257
Liked 64 Times on 53 Posts
Likes Given: 1

Default

Quote:
Originally Posted by IXVolt View Post
But in this market I would low-ball and require seller to pay for all closing costs.
Considering most families are cash-strapped, this worked against our favor during the purchase last year. Cash in pocket is king in negotiations! Offered to cover all closing costs for a $10k reduction in asking price AND seller payed for a 4 year home warranty since we knew the seller was in a tight spot and didn't have much cash on hand.

If you can get a 4% rate without putting 30%+ down, be happy.
__________________
On Deck: Cornucopia Oktoberfest
Primary: Centennial Blonde v2, Ed Wort's Kolsch
Secondary: none
Kegged: County Jail Pale Ale, AHS Anniv IPA, AHS Brooklyn Brown, Raspberry Wheat, Blood Orange Hefe, Ranger IPA clone (x2), Newcastle clone, AHS Irish Red, Centennial Blonde
Bottled: Session Series Belgian Saison, Apocalypso, Pecan Porter, DFH 90 Minute Clone, Apfelwein (x2), Wytchmaker Rye IPA Clone, Vienna/Simcoe SMaSH, Munich/Cascade SMaSH
rhamilton is offline
 
Reply With Quote Quick reply to this message
Reply



Quick Reply
Message:
Options
Thread Tools


Similar Threads
Thread Thread Starter Forum Replies Last Post
Important Hop Info homebrewer_99 General Chit Chat 9 09-17-2009 01:29 PM
Call-out for UK info Nugent General Chit Chat 1 04-22-2009 10:57 AM
Customers who bought this item also bought... Laurel General Chit Chat 9 07-10-2008 03:23 PM
I haven't brewed recently because... olllllo General Chit Chat 19 06-07-2007 03:38 AM