Buying or Selling a Home/buying a 1947 home

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Expert: Jim Root - 4/16/2010


Question
We went to see this home that we were going to buy to rent as an investment. However, it is so cute that we might just live in it and rent out our present home.(The house we're looking to buy is on the countryside with a lot of trees.) What kind of loan would we have to get and how much would we have to put down as a down payment?  Thanks and please let me know asap.

Answer

Hi ESTHER--

If you are going to buy the House as an investment, to rent out,therer are numerous CONVENTIONAL LOAN programs that you could use.To buy investment properties, however, your down payment,interest rates and loan fees will be higher than if you were buying a Home to occupy as your Primary Residence.Also, unless you have evidence of experience as a "Landlord," your chances of having a loan approved are minimized by the perspective "risk" to the Lender.And some Loan Programs will count the rent yopu get for the other house towards your monthly incom--while some will not!

IF you can MAKE UP YOUR MIND about buying the Home as an Owner/Occupant, and living in it for at least a year, both FHA and VA Home Loans are possible.VA is for Veterans of Military Service, FHA for anyone! Zero Down for VA & 3% of the Sale Price for FHA Loans. Interst rates are LOW, 5 or 6% and loan & closing fees are minimal for both of the Owner/Occupied-Government=backed loans BUT YOU HAVE TO CERTIFY YOUR INTENTION TO USE THE HOME SECURED BY THE FHA OR VA LOAN AS YOUR PRIMARY RESIDENCE FOR ONE YEAR!

And, of course, you have to quaoify for the loan based on your income/debts, value of the home being purchased, credit history/scores, etc.

I suggest you visit your favorite Mortgage Company and discuss this matter with a Loan Consultant. He/she can help you int the BEST oan for your specific personal & financial situation

GOOD LUCK!

--JIM  

Buying or Selling a Home

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Jim Root

Expertise

How to select the right Real Estate Salesperson & Loan Officer--ones who will serve your best interests! House-hunting tips & suggestions on selection of the home best for your family needs. Introduction to the Home Buying Process & all the "Players" involved.What is of utmost important to the Homebuyer? Real Estate Contracts & Negotiations, Appraisal needs, Title Co. involvement, Home Inspection issues& the Closing/Escrow systems, etc. Whatever your question, the answer will follow, whether from personal knowledge or research! Gale, shown here with me, has been a Real Estate Office Administrator, licensed Realtor & has served as my Research Assistant over the years!

Experience

Over 30 years as a "Real Estate Professional." including Real Estate Marketing & Sales, Appraisal work, Mortgage Banking & as a Realty Officer with U.S Dept. of HUD's FHA Homeownership Division in Alaska, Washington & Idaho! Some experience in Montana, California, Utah & Nevada markets!Knowledge of National Markets by continuous Research!

Organizations
Former member of Nat'l Ass'n of Realtors (NAR) & Mortgage Bankers Ass'n of America (MBAA). Currently with National Association of Review Appraisers & Mortgage Underwriters (NARA/MU).

Publications
Published in various local, state, regional & national Real Estate-related magazines & newsletters!Co-author of various Govt. publications on Homeownership, Appraisals & Mortgages while with HUD/FHA.

Education/Credentials
Associate Degree in Real Estate Studies plus: Numerous Real Estate-related Courses conducted by the U. S. Government & Private Industry over the past 30 years. Bachelors Degree in Mass Communications, Masters Degree in Education/Teaching

Awards and Honors
Professional Designations: Certified Residential Originator (CRO) from MBAA, Registered Mortgage Underwiter (RMU) & Certified Review Appraiser (CRA) from NARA/MU. Outstanding Peformance Awards for 10 of the 12 years with HUD/FHA & numerous Sales/Listing Awards while a licensed Real Estate Agent.

Past/Present Clients
No longer selling/listing Real Estate, nor Appraising properties, nor working in the Mortgage business, this "Real Estate Pro" serves as Director of a Company that provides Professional Development Seminars & Workshops to the "Real Estate Industry" and provides free (as needed) & fee-paid (on a sliding scale) consulting & inspection services to members of the general public.Your questions will be answered without "salesmanship" & with your best interests in mind!

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