My sister and I live in NJ, and rent is outrageous. We are paying approx 1900 in rent between both of our apartments. We would be 1st time buyers.

My credit score is poor around a 560. I earn 27,000 a year, and receive child support of 5,200 a year. My debt ratio is high 80%, mostly due to a student loan. My cc’s will be paid off within a month, bring it down to about 65%. I have had a bankrupcy discharged since 2001.

My sister has a great score, around 740. She makes approx 34,000 a year. I would say her debt ratio is at 70%.

Neither of us have any car loans. No late payments in the the 3 years.

We would prefer to buy a multi family house, so it would help mortgage/tax wise. A few that we are intrested in are priced approx 350,000. We would like to share a unit, and rent the other. According to similar rentals in the area, the rental unit would rent for approx 1400-1500 a month plus utilities.

Is what we are considering realistic? Or asking too much?
We do have money saved in the bank, only about 15k between the both of us. This is not to be touched – emergency cash only. We are not willing to put in on a downpayment or we will have nothing to fall back on.

We are spending a big portion on rent, and we would rather invest it in a home. Rent is like throwing money in the trash.

What would be an ideal loan amount that would be approved?

Two years ago you would have qualified for a sub-prime loan. Today, I doubt you would qualify at all, your sister may qualify but probably not for zero down as few if any lenders are still accepting zero down. Zero down and other lunacies were a symtom of the housing bubble excess which has since been cured.

the lottery

Certainly, but you have to find a very cheap house to buy..
The size of your mortgage payment is based upon how much you borrow, your interest rate, and the number of years you will receive to amortize the loan fully.

Obviously, the less you borrow, the lower the rate, and the longer the term, the smaller your payment will be.

If you are asking if you can borrow a whole bunch of money and make small payments, the answer is NO.

Wow! If you are getting a 100% loan than yes it’s a good rate.

To answer the guy on top that says he seen 30 yr fixed at 6%. That is most likely based on a loan with at least 20% down payment, a fico score of 720 or higher and a debt to income ratio of at least 45%.

I am a Real Estate agent and my husband is a VP of a mortgage bank, we were not aware of any banks still offering 100% loans. Would you mind sharing the banks name. I have plenty of clients who could benefit from this.

Congratulations!

http://www.youtube.com/watch?v=LPSDnGMzIdo

No, it wasn’t a good idea. It was a way for people to live beyond their means and for mortgage companies to screw them into payment plans they couldn’t afford. Both sides were wrong and both sides got burned.

Dawn Welsh a 54 year grandmother is raided in her own home, for what…owning her own home. If this sounds like something straight out of the Twilight Zone, well welcome to America in 2009. Listen as the fascist U.S. government steals an American grandmother’s home and terrorizes her!!!!!

Dawn Welsh of Hillsboro, MO Arrested for Trespassing in Her Own Home After Supposed Mortgage Scam. Dawn Welsh knows her house was paid off. She received paperwork from the original mortgage company showing it was paid off. However through a fraudulent conversion of the mortgage, Wachovia Bank claimed authority of the mortgage and then claimed Welsh still owed on her home despite her having proof from the original bank that the note was paid in full.

Today, Hillsboro, Missouri police came onto her property and broke her door down to remove her from her property.
They used a battering ram to enter her home, despite her showing evidence that she owned the property. She had gone to court previously and showed a judge the mortgage was paid in full, and it is a record of the court.
However, these are desperate times for the fraudulent vampirian banksters and they will go after anyone they want, threatening innocent hard-working Americans at every turn. And to top it off the Hillsboro sheriff was an accomplice to this crime, executing the fraudulent crime and rubbing it in further by seizing all of the 54-year-old woman’s possessions.

When these mortgages are sold from the original mortgagee to another bank, an illegal conversion takes place. No valid contract is ever initiated between the mortgage holder and this new entity. In fact many people wind up in court after they are told they owe more money on their homes after a series of mortgages being pushed back and forth through the mortgage process.
Ref: http://worldreports.org/news/108_subprime_slide_that_masks_fraudulent_finance

Wachovia Mortgage took over the mortgage and said they weren’t going to honor the paperwork from the previous mortgagee and continued to harass this woman. So we have a woman with the proper papers showing her house is paid off with the police and the courts ignoring the paperwork.

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I have no money down and a good amount of debt (approx.. 60,000 with student, cars, and credit cards.) Would I be able to get a mortgage to buy a three family home and rent out two of the floors? If I was to roll my debt into the mortgage and take out a $200,000 mortgage (debt, house, and fix-up money) I could pay the mortgage with my paycheck each month, no questions. First time buyer

Ummmm….

A lot depends on the value of the property. While you might be able to afford a $200,000 loan with your normal income, what the lender will consider as more important is the value of the property. If the property is not valued at more than $240,000, they would probably not lend the amount you want.

First Time Home Buyers use FHA Mortgage and Seller Paid Closing Costs to Buy Real Estate Now. Best Market Conditions for Foreclosures and Short Sales in Decades. Go To http://RealEstateMarketingThisWeek.com

Part 2 (Excerpt)

How having the Seller pay your closing costs can quadruple your money

On the other hand if you roll that into the loan it’s going to take you 160 months to break even on that. 160 months which is a little over 13 years, that is the antithesis of the Velocity of Money that we talk about on the show every week, so I am not convinced that its the right deal for the masses, but something that should be considered is what is the opportunity cost of taking the money out of Account X and the type of account you taking it out of has some impact too. If it’s from a brokerage account then you experience the market loss in that account and youre selling at these low price levels, I think the markets are going to turn and the opportunity costs over 160 months, youre talking about a substantial amount of money. And the additional mortgage payment is insignificant.

Obviously no one is going to allow you to pay more than the house is worth, that’s not what were suggesting. What were suggesting is merely to look at instead of simply making a lower offer than you would normally make, I’m suggesting that you consider the closing costs and what the real closing costs are in this example.

Assuming that the house is already attractively priced, one of the things that this buyer in this example should consider instead of making a lowball offer on a house that’s already priced rather attractively in this marketplace, it might make sense to consider exactly what you’re describing now. And that would be take that money or that difference and ask the seller to include those costs as part of the deal to sell the house, versus why lowball offer the house when you already know the house is the right price.

That’s exactly right and one of the other points here is in a lot of cases the closing costs dont need to be quite that high. So there is the opportunity for the home buyer to buy down, for instance, use 1% of the loan amount to buy the interest rate down. I did a calculation here today, the cost of funds changes all the time, in fact we had four price changes today. Four mortgage rate changes today, just in one day. This doesn’t apply in every scenario, but that’s why you use a certified mortgage planner, that’s why they use a FHA certified mortgage firm to do the loan to make sure that it’s the right thing to do but here’s the example of today. 1%, paying 1 point to buy the interest rate down will lower your mortgage payment, on this example of a $300,000 house, would lower your mortgage payment by $118 a month.

It’s not simple it’s not just like going to your local bank and having them give you a quote on the rate, there is so much more to it these days. I think that one of the things you’re pointing out right now is the fact that this type of negotiating exists and should be considered when making this purchase. And I know that you have already espoused that youre not a realtor in that sense, but your realtor should be talking to you about these options. If they are not, you may want to consider finding one who knows about that stuff.

They absolutely do and I’m not suggesting to anyone that they go out and find another realtor because yours is not working out for you. The reality of it is if your realtor doesn’t believe in the concept it may only be that they just don’t understand the concept. Have them give us a call, we can explain it to them. And I have simple illustrations we can share with them, how we would structure it financially, and they can, the realtor can set the price. That’s what their job is, but what our job is to make sure that you use every penny available to you to the best of your ability.

I have a question for you Brett, if you took $9000 and didnt take it out of your savings, 401K, or whatever, what will it turn into with today’s market? What would that be like?

Depending on the way the money is allocated, invested in a fixed income investment, or an interest-bearing account in a bank or whatever, what I can tell you is over the same amount of time, that $9000, over 160 months, youre probably talking about quadrupling the money. I would say that that is relatively easy and I’m not talking about taking on significant stock market risk. What I’m talking about is just compounding interest in some kind of interest-bearing account. I mean it could be a bank CD.

The other thing to do is we have this book called the Short Sale Playbook written by Ron Quinterro that we have available to anyone who is interested in it…

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