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ArcticMyst Security by Avery

I figured out why the housing market is shit....

Joined
Aug 30, 2008
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My wife and I have been trying to purchase our first (and hopefully only) home.
but unfortunately, they make it damn near impossible to get a home loan!
We haven't even applied for a loan because we hit a dead end before we even get that far...

We wanted to buy a modular home, land, and have a basement poured to put it on. Then finish the basement myself and have a 3800 sq ft house on ~10 acres for less than $150,000.

So apparently we would of had to of gone with a construction loan, which requires 10% down. We don't have $15,000!
So we found out about the USDA loan. 100% financing, woo!
Too bad the house has to be on a permanent foundation (the basement) and pass inspection by USDA before they will approve the loan, and pay for it....
Obviously, nobody is going to let you take a house, or build a house on their land before you pay them.

It's SOO dumb.
We have good credit, but have ran into these dead ends before even being able to apply for a loan.
I'm not going to borrow money for a down payment either as I don't want an extra bill to pay back, and I'm not going to get a regular home loan and purchase some overpriced and old home.

I almost feel cheated. The finished home would be worth SO much more than it cost, and It's out of my reach. Why can't they just run our credit, say, "yup, you're pretty low risk" and give us the damn money?

This is the house we wanted, and will probably never get.
Facebook

I had seen it a year or two ago for $130,000.
Now they're trying to sell it for $69,000
It's on the dealer's lot. never been lived in. 1900 sq ft.

[/vent]
 
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Mar 23, 2011
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I'm trying to remember what we had to do. We have what we always called a modular home, but for loans and insurance is actually considered a mobile home. We combined the home loan with the land (1.5 acres).

I know we had to have a down payment, but I don't remember it being as high as ten percent. We did have to borrow the money from relatives though. :(

Very few options at the time anyway for loans...We ended up with Greentree for the loan. They have a terrible rep through, while I wouldn't recommend them, they might be an option if you haven't already looked into them.
 
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Try an FHA loan IIRC 3% is the amount needed for downpayment worth a try.
 
Joined
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Yeah. From what everyone says, we'd need a construction loan since we want to excavate and pour a basement. Also depending on the land, we may need electric, sewer, and well installed.

I JUST now got my paramedic license. So it would probably be a year or so before we saved up 15,000......and by then i'm sure the house will be gone.

This one is true modular. there is no steel frame underneath it, which is why it must go on a basement or crawlspace, and is a permanent structure once you're finished. It's built to the same specs as a regular house.

We're better off than most of our relatives, so borrowing from family isn't an option. I wouldn't want to do that anyways. Borrowing/lender money with family or friends is always a horrible idea.
 
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Seriously, what happened to the days where a loan officer actually made a decision. You could go in, talk to them, show them what your plans are and talk them into giving you the loan.
 
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I looked into buying a house a couple years ago. Ended like this:

80EXj.gif


I still rent. I'll get one some day.
 
Joined
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I looked into buying a house a couple years ago. Ended like this:

80EXj.gif


I still rent. I'll get one some day.

Exactly. It's so frustrating. The days I try to find a solution to this home loan, it normally just ends with me pissed off at the world...
 
Joined
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Maybe you're aiming too high for the 1st house.

Our 1st house was a small little thing on a small lot
that allowed us to build some equity and that we
could afford then.

We sold that one to get another larger house using
the equity of the 1st house as a down payment.

We eventually paid that house off and sold it and now
own the home + 30 acres + shop I would have wanted
as our first purchase but the $$$ wasn't there.

Good luck with your quest...


Jerry

You can contact us at any time on our Website: J.BAUER Electronics
 
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Joined
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Messages
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Maybe you're aiming too high for the 1st house.

Our 1st house was a small little thing on a small lot
that allowed us to build some equity and that we
could afford then.

We sold that one to get another larger house using
the equity of the 1st house as a down payment.

We eventually paid that house off and sold it and now
own the home + 30 acres + shop I would have wanted
as our first purchase but the $$$ wasn't there.

Good luck with your quest...


Jerry

You can contact us at any time on our Website: J.BAUER Electronics

I'm wondering...

If we could buy the modular with a regular loan, and get it appraised for it's normal price, using the equity as the down payment for a construction loan to buy the land and build the basement...and then refinance it all into 1 permanent fixed rate loan.

Ten we'd just have to pay the few percent down on the house, instead of the entire loan amount. Doing that, it would only costs us a few thousand down instead of 15,000 down.
 
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Jul 10, 2012
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when i purchased my home in 2005 we got a NINA (no income no asset) loan which all you needed was 20% down....its crazy that they even offered those loans and thats probably the reason were in the housing crisis now....well after a year(2006) i refinanced to a 15 year to pay it down faster....well i only owe 65,000 now on a 125,000 home and when i went in last year to refinance, to take advantage of the low interest rate they said i couldnt....they wanted me to pay down the house even more(40,000) because of low reported income......its just crazy that ive payed on time for the last 7 years and owe half of what the house is worth and they still wont refinance.....they dont give squat for home equity loans these days either...my friend has a 400,000 house paid off and the banks only gave him 50,000 limit for home equity loan...
 

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Joined
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Is a tough situation that you describe.

A house on a dealers lot that is 1/2 price and is still not sold/selling that requires a construction loan to do anything with before it is an asset with any value greater than the most expensive component is not a simple low risk situation like buying an existing house and even that is difficult these days.

Around here for an existing in walk in condition you need a near perfect credit score, no debt, plus 20% down payment from free and clear money to get a mortgage that is no more than 35% of verifiable income which is based upon last 3 years of tax returns and reason to believe that income will be the same or more for the foreseeable future i.e. verified stable mature business job. Very difficult for most people these days.

The only choice is to save up a down payment and take a shot at something when you have same plus all other qualifications, unfortunately.

Did you talk with the modular home people to see if they could help engineer a loan for you?
 
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They basically said they have no ideas either. They said they run through 3 or 4 people a month who want to buy it, and run into the same thing as us.

I think we are going to have to save up the money, unfortunately. Too bad by the time we meet all of these stupid qualifications, that house will probably be gone, and we're going to end up paying $30,000 more for something just as nice...

We would have the money if we cashed out some of our 401k, but I don't want to throw away our future security over a down payment.

I watched my mother talk my step father into doing that. They ended up losing the house in the end, and now he's near retirement and his 401k is shit.
 
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I almost feel cheated. The finished home would be worth SO much more than it cost, and It's out of my reach. Why can't they just run our credit, say, "yup, you're pretty low risk" and give us the damn money?

You should feel cheated. The reason you're getting screwed now is the same reason for the so called housing bubble.

In 2007, you could have sent in a piece of paper, your signature, SS#, to any number of companies, and gotten a loan in under a week, with no other paperwork, regardless of credit score, debt, or anything else.

Unfortunately too many people who can't come close to affording homes did exactly that.

Personally, unless I come into serious money, I can't see the point in buying my own property. Building costs, maintenance costs, and best of all, property taxes. Not worth the headache imo.
 
Joined
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Personally, unless I come into serious money, I can't see the point in buying my own property. Building costs, maintenance costs, and best of all, property taxes. Not worth the headache imo.

I've owned my own home since I was 19...

I can't see putting housing costs into the pockets of
a landlord and never see them again when I can just
as easily take them from my left pocket and put them
into my right pocket and still have a roof over my head
and equity on my home investment...
Not to mention that at one point I will have paid off
my mortgage and the monthly mortgage fees will have
disappeared

My father lived in an apartment all his life and thought
like you... no matter how much I tried to convince him
otherwise. He worked all his life and was in debt when
he passed away...

I can't see a time that I would NOT have my own home
that I can do with as I please.


Jerry

You can contact us at any time on our Website: J.BAUER Electronics
 
Joined
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in NYC its totally different....my wife is from bayridge brooklyn originally and moved here(indianapolis) 21 years ago with her parents....her dad is still in that NY state of mind and has rented the same Apt. for all those years....i always tell him that if he would of just bought a home, he would have the thing paid off by now and made retirement alot easier.....NYCers are scared of owning cause the cost/fees are crazy ,but in most other places you can find a affordable home to buy......

yeah it was sooooo easy to get approved for a home before 08-09....i was a 22 year old college student with no job and it was easy as pie...20 min on the phone and that was it.....as i recall new constrution/custom homes loans have always been hard to get unless its in a neighborhood....
 




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