first home

ov3rkill · Joined: 12 Jan 2010 Posts: 2

Hey guys, im new here.
I am getting ready to buy a house to take advantage of the tax credit they are giving, I have been looking on the net at a few places and I have found a few townhouses and condos that have caught my eye. Almost all of them are short sale, I wanted somebodys professional knowldge and response because I was wondering, for short sale do you have to have all the money cash in order to buy it or not? I have some money saved up, but then again I don't want to put it all to the house, this weekend im going to see if I can get pre approved for fha loan.

EricJ · Joined: 09 Jan 2009 Posts: 321 Location: New Jersey

Best of luck to you

ov3rkill · Joined: 12 Jan 2010 Posts: 2

thanks, i guess

m2c · Joined: 03 Aug 2005 Posts: 937

As I read your post, you have sufficient liquid assets to pay cash but would rather maintain some liquidity. If so, FHA financing would be an unlikely avenue but that is good since condos are almost kiss of death for FHA unless the condo association has recent FHA approval. There is some hesitancy on the conventional side due to the typical slow turn on resale but larger down payments go a long way to ease this fear. Great variance of acceptance of condos by location. In some locations condos are readily accepted; you can get an idea yourself by investigating days-on-market statistics on recent condo sales Look closely at amount of condo fee relative to YOUR desire for the “amenities” over and above outside maintenance. Look at reserve balances and repair cost projections for the project; if there are empty units, the association may be using cash to stay alive at the cost of maintenance.

Even though it appears that mortgage financing is more of a convenience than a necessity, I would talk with a LO to get the lay of the land. I’d start off telling the LO that you’re considering only 20% down – you will be more likely to learn of any issues with acceptance of condos in the local market if you take this approach.

Kunstkamera · Joined: 27 Feb 2010 Posts: 1 Location: Ecuador

Anyone have any tips for a first time home buyer? Graduating from College in December with a salary at 50K/year. Not much money saved for down payment. Tired of paying rent but feel it may be my only option until i get the down payment saved.

savana · Joined: 22 Dec 2010 Posts: 15 Location: United States

Buying home is a not a problem but, one must see the better ways of buying like, if the down payment is high than it is much better to wait for sometime and till than renting can be done and soon after that when one can manages the money than better to buy house.