First Time Homebuyers

[mhd]

I know this couple that got married back in the 80's. Their families all chipped in and gave them a downpayment for a house. This was a HUGE relief for them just starting out, they were able to spend $$ on other things + save. Today they're livin LARGE - thanks to that boost. A kickstart is always nice.

i was waiting for you to write that they then refinanced the house and repayed the loan to the family and allowed another family member to buy a house, oh well...

[liL Ray]

i was waiting for you to write that they then refinanced the house and repayed the loan to the family and allowed another family member to buy a house, oh well...

you know...lol

[Discogoddess]

for nonFTHBs, the landscape is a little better...but not by much...the credit part that I mention (3-5 tradelines at least one being $5K and open for 24mths) is tossed out the window...but you still have to have good credit scores to get the loan to Value needed as well as the good rate needed. All other criterias still hold.

As far as do you have to sell your existing first, that is all up to you and can your DTI (Debt to Income) support the cost of the new and the existing old.

a few "tricks" if you are going to hold on to the fuirst and buy another:
1) If you want the best rates and the highest LTV (Loan To Value) on the new purchase, you are going to have to say you are going to live in the second house and keep the first as a rental....now you can use 75% to 90% of the rental (depending on the bank) to add to your income...this is one of the power of homeownership.

2) If you are moving from a single family residence (SFR) to another SFR, it is easier for the bank to believe you are going to use the new place as the primary residence. You may have to write a "Motivational letter" that will say that the house you are moving to is bigger, school district is bigger, neighborhood is better (moving from the 'hood to the suburbs).

-however- if you are moving from a SFR to a 2, 3, 4 family, it is going to be very difficult convincing the bank that the new home will be your primary, so, it will fall under Investment property, second home, or Non-Owner Occupied. This will make the rate higher, and you may only be able borrow 80 to 90% Loan to Value...

there is alot more things involved (obviously) but just know that sometimes showing on the app that you are keeping the first home, just so you can use the additional rental income, will allow you to get approve for that bigger second home...can you then afford it or need it? only you and your pockets and senses can answer that.

hope that helps...

Yes, this helps a LOT, Ray! Thanks. In my personal situation, we're leaning toward keeping the first property as a rental, given that the nabe is up and coming and getting hotter (on the purchase and rental sides). If and when we do move, it will be as you said...for a bigger home (from condo to SF), better school choices and to live closer to our family support system (= babysitters ;)).

mhd, I thought Rom was the go-to guy for real estate sales, not mortgages? At any rate, I just wanted some ballpark info for myself and a couple other friends in the same boat.

[Mr.I]

Mr. I, you have to either communicate better or add a little more than that to this here conversation. What your are saying is so very obvious to a 2 year old...I'm still waiting on your point or your input in this.

Well I never

[mhd]

Yes, this helps a LOT, Ray! Thanks. In my personal situation, we're leaning toward keeping the first property as a rental, given that the nabe is up and coming and getting hotter (on the purchase and rental sides). If and when we do move, it will be as you said...for a bigger home (from condo to SF), better school choices and to live closer to our family support system (= babysitters ;)).

mhd, I thought Rom was the go-to guy for real estate sales, not mortgages? At any rate, I just wanted some ballpark info for myself and a couple other friends in the same boat.

lol, imo, rom is the go to guy, period. there are a lot of morons out there and then you meet someone that really knows the game well, good to hear that you are keeping your spot, smart move

[liL Ray]

Yes, this helps a LOT, Ray! Thanks. In my personal situation, we're leaning toward keeping the first property as a rental, given that the nabe is up and coming and getting hotter (on the purchase and rental sides). If and when we do move, it will be as you said...for a bigger home (from condo to SF), better school choices and to live closer to our family support system (= babysitters ;)).

now, you didn't hear this from me and I will deny, deny, deny...if the rents is your area is $1000 for you place, you will make sure the loan officer put $1500 to $1800 on the application or whatever is needed to "make-up" your monthly income...

just tricks of the trade....

[liL Ray]

Well I never

hahahahaha...no harm on my part Mr. I, just letting you know that you can't just run in, say incomplete thoughts and run back to the dryer...

hahaha

[liL Ray]

there are a lot of morons out there and then you meet someone that really knows the game well,

this may need some clearing up...hmmmmm.

[Discogoddess]

...Chicago is getting expensive bruh, depending on where you at......

Definitely...even Englewood has seen astronomical jumps in home values (which is great for the folks who got in earlier, if they can keep up with the taxes).

Folk have to be extra, super, especially tight and careful to get access to the American dream of homebuying. Esp. in markets like Chicago, where what once was affordable for many is becoming less and less so. There are still ways to do it, but folks have to be really on it.

[mhd]

Ok, I get what you saying, I will say this though a lot of areas in the Chi are getting expensive with the development that going on all around the city.

Those three bedroom brick bungelow's that are all around the city that used to go for 90-95 thousand like in the Auburn/Gresham and Englewood areas are now in the 160's to low 200's depending on the block.

My aunt lives on 85th and Justine, she paid 90 stacks for her crib about 14yrs ago, now her house has almost doubled in value. Got another aunt that lives on 87th and Bishop she has been in her bungelow since 1974 she said they paid 55 thousand for it then it worth almost four times the amount now.

Chicago is getting expensive bruh, depending on where you at......

but as a seller, you are happy about appreciation, right? man, you would be schocked to find what you can get for 200k in baltimore or philly, shidd, for 150 you could be in a nice neighborhood next door to a university, with a rental unit in the basement paying half your mortgage. but getting back to the chi, what are you gonna do? where is your crib? could you hire a property management company to take some of the headache away and rent your joint out and make a net profit monthly?

[MYOR]

this may nee some clearing up...hmmmmm.

you are a moron.. No copying a paste see so I didnt cheat.. hahaha
j/k

[mhd]

this may need some clearing up...hmmmmm.

?

[liL Ray]

you are a moron.. No copying a paste see so I didnt cheat.. hahaha
j/k

ok, that's how I thought it read...

[Discogoddess]

now, you didn't hear this from me and I will deny, deny, deny...if the rents is your area is $1000 for you place, you will make sure the loan officer put $1500 to $1800 on the application or whatever is needed to "make-up" your monthly income...

just tricks of the trade....

Thanks...this is along the lines of what my mortgage broker told me back when we were considering buying my deceased grandparents' home. The good thing is, in the intervening time (two years), rents have increased such that we don't have to fudge, lol.

[MYOR]

ok, that's how I thought it read...

ohh damn, here I go again trying to get my preggo ass kicked...

[Discogoddess]

...could you hire a property management company to take some of the headache away and rent your joint out and make a net profit monthly?

Speaking of that, Chuck (or anyone in the Chicago area), if you are considering renting your current home, I can put you in touch with a professional who can handle that for you. PM if you're interested.

[mhd]

ok, that's how I thought it read...

huh? dude, i just plugged you twice in this thread

[liL Ray]

Thanks...this is along the lines of what my mortgage broker told me back when we were considering buying my deceased grandparents' home. The good thing is, in the intervening time (two years), rents have increased such that we don't have to fudge, lol.

but my point is, fudge anyway. This is not the time or the profession to get all holy and churchy on a mofo.


(where is them damn smilies!!)

[liL Ray]

huh? dude, i just plugged you twice in this thread

hahahaha...I'm good....I just wanted to get a rise out of you...hahahaha...

[liL Ray]

Speaking of that, Chuck (or anyone in the Chicago area), if you are considering renting your current home, I can put you in touch with a professional who can handle that for you. PM if you're interested.

there you go!!

[Discogoddess]

but my point is, fudge anyway. This is not the time or the profession to get all holy and churchy on a mofo.


(where is them damn smilies!!)

Duly noted.

And....thanks again!

[mhd]

this may need some clearing up...hmmmmm.

ok, i get it, Rom is on the board, is a real estate professional, for some years now, is excellent at what he does and he is IN CHICAGO, as you know there is a lot of mortgage fraud all over so morons refers to them

[Fletch]

philly is ridiculously cheap, cheaper even than chicago, which makes chuck's statement even more absurd

Philly's population loss will probably make it cheaper.

Got friends who are in a Victorian-style house in Spruce Hill (Penn campus). I believe it's about 10 rooms plus the attic. They bought it in 2000. I don't believe they paid that much for it!

[Chuck P]

but as a seller, you are happy about appreciation, right? man, you would be schocked to find what you can get for 200k in baltimore or philly, shidd, for 150 you could be in a nice neighborhood next door to a university, with a rental unit in the basement paying half your mortgage. but getting back to the chi, what are you gonna do? where is your crib? could you hire a property management company to take some of the headache away and rent your joint out and make a net profit monthly?

My home is in Calumet City, the wife and I just found a home out in Monee that we like, ofcourse it's bigger than the one we're selling and of course it cost more but we're just not into the landlord thing right now.

Especially with me in school now, I can't afford to take any time away from that.

So we'd rather just sell and move on.......

One of my Frat brothers was telling me the same thing about the Dallas/Fortworth area, we are looking at a house in the low 300's he was like for that kind of money you could damn near buy a mansion down here.

It comes down to one thing.........Location, Location, Location......

[Discogoddess]

...So we'd rather just sell and move on.......

But in the meantime (which can be a looooonnnnngggg time in this market), why not rent it for 6-12 months? Or a rent-to-own (if that makes sense)? For a fee, you CAN get rid of the landlord headache.