Rxers Help: Buying House for 1st time

Defying · Nov 4, 2010

The Hardest thing thus far about this process is stomaching the fact if we were able to purchase a house just a year ago we would of got 8k rebate.. and now its nothing??

Is there any incentives like that available like that now?

What about grants? Any other ways to get some "free" money?

We haven't found a perfect house yet, but we found a house we like with a detached rental property that would cover 60% of our mortage, which I am all about. She could care less, but the way I see it, in 5 years or so, we could probably afford another house, and rent the actual house out too, which would provide about $500 more than our mortage per month. Personally, I think this is a great way to build wealth. We are young (25, 22) and I am leaning toward that, however, she seems to want more house for the money. We'll see.. looking at more places this week...

Still, I would love some of that government money, any tips? Im in Virginia if that helps.

shdw01 · Nov 4, 2010

im in the same boat as you (kinda)....been looking for 3 years and just got my house last month. But I will tell you this:

if i bought a house 3 years ago when I started looking, I would not be happy today:

I saw a housing market crash and homes now being sold for less than what they are worth, not way over their worth.
I saw an $7,500 refundable credit turn into an $8,000 non-refundable credit.....but then it went away
and now I'm seeing interest rates drop like mad to lows not seen in my lifetime.

You have a great plan and you can really take advantage of low rates with how the market is today. Some say points aren't worth the money but if you are in it for the long haul and plan to have your rent payments greater than the mortgage, pts is not such a bad idea. Hopefully everything works out for you....you have the right attitude towards things and should end up in a good place.

there are lots of government assistance programs with loans and stuff that you can look up....however, there is no tax credit like that $8k stimulus one that I really wish i cashed in on.

BigBee · Nov 4, 2010

Im a realtor here in Vegas, and although the market isnt nearly as bad there, you're still getting a potential income property at a great price, with historically low rates.. Forget about the 8k, buy the house, and enjoy it.. 10 yrs from now, you'll be very, very happy you did..

Anyone need help in Vegas, lemme know..

Enfuego · Nov 4, 2010

I was shopping for a house in Virginia about 2 years ago and went to view about 5 places. Guy was showing us 300K houses that were just trashed from the previous owners. Houses were in foreclosure and the owners had just destroyed the insides. Damn oven sitting in the living room, hand rail to the stair case hanging by a nail etc. Just overall carpets all trashed and general damage. I just wasn't ready to pay 300K and then have to put 20-30K more into repairs because the house was not move-in ready.

My advice to you is to take your time and be patient and if you don't make her happy with the selection then you will be unhappy for the next XX years of your life. Make the boss happy!

cincy_ · Nov 4, 2010

Foreeclosures need a lot of repair .... what happens is that they are in forecloure because they're broke, so they can't maintain anything ... then they live in the place for a few months for free knowing they're going to get kicked out ...

... so if you're going to get kicked out from a house ... and if you're dead-ass broke ... the LAST thing you'll do is maintenance.

texansfan · Nov 4, 2010

You can buy the Shrink's old house.

HPark1 · Nov 4, 2010

If you're buying a foreclousured home you want to be very careful. Most of the homes foreclosed on were done so fraudulently and now its up in the air who owns them. Re the whole fraudclosure/foreclousure gate massive scandal.

Anywho you'll be much wiser to wait a half year/year before you even think about buying a home. An economic collapse is in progress and what you buy now may be worth a whole lot less in the very near future.

Defying · Nov 4, 2010

hmm don't know how all the foreclosure talk began, but really not many foreclosures in our price range...

shdw mentioned something about government assistance and downpayments: that's what I am trying to learn about. I went to the governement website, but really couldn't find anything to see what kind of applicants qualify. I just don't want to buy a house next month, and then find out I could got a couple bucks from Uncle Sam.

I know our interest rate is low, and I know the advantages to that, just hoping someone would know more about downpayment assistance or other grants available to first time home buyers, or a way to search to see if you qualify for any of them..

thanks guys for the help thus far.

Defying · Nov 4, 2010

texansfan said:
You can buy the Shrink's old house.

I actually went ODU and lived a couple miles from him in college. I never knew who he was when he was alive. I learned about him after his passing. I was just lurking the RX daily at that time, didn't know about across the street site. Wish I would of met the guy, even though there seems to be mixed opinions about him. Sad story.

Willie99 · Nov 4, 2010

No tax breaks at National Level

if there's a federal program for you, you'll find it here
http://portal.hud.gov/portal/page/portal/HUD

search you state websites for any local programs

PS: why didn't you PM me with questions?

Willie99 · Nov 4, 2010

http://www.vhda.com/Pages/Home.aspx

BTW: call local banks and inquire about foreclosure auctions

TomGshotput · Nov 4, 2010

Wouldn't incentive programs have changed the demand for buying houses?

If that is true, no worries about missing out on it

Dante · Nov 4, 2010

Buy a house within your budget that you can afford. if possible do a 15yr morg. you will save SHITloads on interest

We did that refi about 10 yrs ago we have 5 yrs left on our house until debt free

Defying · Nov 4, 2010

this may be a dumb question......but im going for it...

is there are a way to buy a house, and get a mortgage for a little more than we purchase the house for, to get 10k or so to do some work on the house before we move in?

Defying · Nov 4, 2010

i imagine this isn't possible unless their is equity in the house.. but figured I would ask

Dante · Nov 4, 2010

Defying said:
i imagine this isn't possible unless their is equity in the house.. but figured I would ask

sure I think you can.... but its harder in this economy

shdw01 · Nov 4, 2010

Defying said:
this may be a dumb question......but im going for it...

is there are a way to buy a house, and get a mortgage for a little more than we purchase the house for, to get 10k or so to do some work on the house before we move in?

I just went through this.....the answer is no

I think back in the day you could.

However, there are millions of brokers out there so if you find the right one MAYBE.

At wells fargo, the rule is they will let me borrow 80% of the LESSER of purchase price or appraised value.

I needed to do renovations.....i found a FCU that allowed me to take up to 80% of appraised/state assessed value at 4% and up to 90% of that at 8%APR. but this was a 2nd mortgage/HELOC. That might be what you have to do

shdw01 · Nov 4, 2010

I think along the lines of first time homebuyers, there is a construction loan out there you may qualify for.

i chose not to do this because i hear the fees you pay are ridiculously high.

Defying · Nov 4, 2010

shdw01 said:
I just went through this.....the answer is no

I think back in the day you could.

However, there are millions of brokers out there so if you find the right one MAYBE.

At wells fargo, the rule is they will let me borrow 80% of the LESSER of purchase price or appraised value.

I needed to do renovations.....i found a FCU that allowed me to take up to 80% of appraised/state assessed value at 4% and up to 90% of that at 8%APR. but this was a 2nd mortgage/HELOC. That might be what you have to do

great info thanks for the research shdw..

Defying · Nov 4, 2010

we looked at 7 more houses today including a couple foreclosures, but nothing came close to the one.. we go next week to look at 10 more or so, and if we dont get close, well probably move on the one house that has a rental property

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