Currently viewing the tag: "loan"
Question: Need a home loan with fair credit…?
Me and my fiance are getting married on May 10 and we want to purchase a home. We found a PERFECT home for us in our town that has been appraised at $ 80,000 and is being sold for $ 40,000 (please keep in mind we live in a small rural town where the median price for a home is $ 50,000.) The home was a foreclosure that is currently owned by a couple that “flips” houses. My credit is 540 and his is 550. Up until a year ago his was perfect but he went through a divorce. My credit is bad because of bad checks that were written out. Im getting my taxes back in a week and will finally be able to pay off everything negative that is on my credit report. We were told that there is no way that we will be able to get a home loan bc of our credit, but i still think there is something that can be done. Ive never owned a home and he has previously owned two-one that burned in a house fire and one that is ex is currently living in. Is there anything that can be done, or where is a good place to begin…
Answer:
Answer by Luis S
If you can get an FHA loan, maybe, but I doubt it because you probably have collections and chargeoffs, otherwise, not to be harsh, but you need to get your finances in order, and pay your bills, and get some money into savings.
Then you need to develop your credit. There are plenty of major credit card companies that offer secured credit cards, and you can develop it that way. Use them for gas and groceries, then pay them off at the end of the month. It will take you about 2 years to get things back in order.
Question: VA loan, cheap house, work question – maybe I watch too much HGTV but this is a dream of mine?
I have 18 months left in the service and I’m seriously thinking about buying a home and would appreciate some advice or tales of experience here.
I can’t wrap my head around renting for a few years and throwing all that money away, to be honest, and a goal of mine has always been to own my own home.
I’m looking at living in SE Pennsylvania, ideally in Philadelphia and working and going to school on my GI Bill. I’ve looked and keep running across fixer-uppers or outdated homes for the price of a new car.
I’d like to get a loan for 50k for a ten or 15 year period (even with a low credit score, the monthly payments are around $ 650, which is manageable even with a part time job). 35k would go toward purchase of the house, with 10-15k set aside for repairs, new roof, flooring, kitchen or bathroom, new water heater, etc.
As long as the place is liveable and the repairs mostly cosmetic, I wouldn’t mind living floorless or wall-less for a while and doing some work myself. I understand HGTV makes it look much easier than real life, haha.
Also, my motivation here is not to “flip” a house or make some ridiculous profit in a short time, but to create a home.
Is this feasible? What problems do you see in the plan? Have you done anything like this?
Thanks!
Thanks! This would be my first time around with real estate – so I expect there are a LOT of things I don’t know.
Please keep the great input flowing – I’m learning. 
Ideally, I’ll be saving for a down payment and emergency fund over the next 18 months.
tag-on Question: Is a home loan given for the value of the house, or for a set amount? Could you theoretically borrow 80k and put 60k toward renovations on a 20k house?
Answer:
Answer by tkquestion
You are forgetting couple BIG things when you computed the loan payments.
Surely, for $ 50K loan for 15 years at 10% (you said bad credit) would equal to $ 537 a month. On top of it, there will be a private mortgage insurance, escrow for home owner’s insurance + tax, and you’d easily be paying $ 900 a month.
What would happen if you need new roof, new plumbing, or A/C? Each of them will cost you $ 5K to $ 10K. Can you handle that? Worst case scenario… what happens if there are serious structural problems?
If the house is worth $ 35K, you can get a loan for $ 35K. Especially not-so-great credit, the bank will loan you over the value of the house. Also, you’d find, $ 10K will go VERY quickly….
Question: What’s the best way to finance a real estate investment loan?
I’m planning to “flip” a house in the midwest, but I’m not sure how to go about financing. I plan to purchase the house for $ 130k, spend $ 20k in repairs, and sell for $ 160k. I would need to finance the purchase and repairs.
1) I don’t know what type of loan to go with
2) I don’t know if it’s better to go to a bank, like National City, a financing company, like CitiFinancial, or a different type of company…
Answer:
Answer by William H
If you can’t afford to pay cash for the investment, then don’t do it.
Also, if you don’t know what type of loan you might go with or type of bank to use, then you need to spend more time learning about finance.
Third, if all you are going to make is $ 10,000 it is more than likely the interest on the loan will be greater than that and you will end up losing money.
Question: I’m in need of a hard money loan in Florida. Can anyone help me find this type of loan?
I’m a Professional that is looking to get into “flipping” houses. I have located properties that are 65% to 70% ARV. If anyone knows of a Hard Money Lender or Private Investor I would appreciate your help.
Answer:
Answer by mcmufin
This is the wrong time to do it here. You’re finding homes with such a low price to assessed value ratio for two reasons. First, no one is buying and prices are falling. There is so much inventory both on the market and not on the market (homes built by construction companies but not offered for sale so the builder’s homes that are not listed for sale so those offered for sale might go for a higher price) that it will be at least a year before prices stabilize, let alone start to rise. It could be as long as two or three years before prices bottom out.
Second, the assessed value is based upon when the homes sold during the real estate bubble. Prices were artificially high then. A house might have sold for $ 500,000.00 then, but it is only worth $ 300,000.00 now. The property is assessed at $ 500,000.00 because that is what it sold for, even if it is only worth $ 300,00.00 now.
I know many people made hundreds of thousands of dollars during the bubble, but they also caused the bubble, and they are now left holding devalued properties.