AboutJonathan P. Magill Expertise I can answer all questions that pertain to financing and buying a HUD owned property. All questions pertaining to and regarding the recently passed Economic Stimulus Package and how it may affect your ability to finance a home using HUD's FHA Loan Programs.
Experience Twenty-One (21) years of hands on experience.
Organizations Raised over $250,000 for MDA
Famlies for Loving Savior (www.f4ls.org)
Publications LA Times, Chino Hills Champion, California Mortgage Bankers Association, various websites and Homes and Land magazines
Education/Credentials California Mortgage Bankers Association (CMBA)
Co-Founded and operate as CEO and President of PMAC Lending Services Inc. (www.pmac.com)
FannieMae/FreddieMac Approved Seller
HUD Full Eagle Delegated Approved Lender
Awards and Honors City Beautification Award for Chino Hills in 2006
Past/Present Clients Thousands of Home-Owners in the U.S.
Thousands of Real Estate Agents in the U.S.
Real Estate Allinace (REA - Represents most major banking institutions liquidating their portfolio of Real Estate Owned (REO Homes) www.russellreohomes.com
Countrywide
Citibank
Chase
Wells Fargo
Question QUESTION: My income is in the low $50,000, FICO score at 710-750. I have never bought a home. I'm interested in a buying a friends house. Can HUD help me? If not, where do I begin to look for a HUD house? Should I contact a local office? What questions do I ask?
ANSWER: Hi Jason:
The first thing to do is get pre-qualified by a fully delegated FHA/HUD lender - NOT A LOAN BROKER.
You can do this by contacting PMAC Lending Services and ask for Frank Gomez. He is a FHA certified Loan Officer who can help you.
His phone number is 909-614-2000 E-mail: fgomez@pmac.com.
FHA has loans that require little to no down and carry very attractive interest rates. What is the sales price of your friends home?
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QUESTION: Thank you for the information. My friends house was originally flipped for $255,000 last year. The market dropped out and my friend bought it for 165,000. His girlfriend left him the day they moved in 6 months ago and he wants out for what he paid. I could probably talk him down another 10,000 depending on what I qualify for. It is a 2Be/1Ba, new kitchen remodel, new sub floor, new roof, 1/4 acre yard. We both think it will only go up in value, slowly. I don't know if I want to live in it because I love my apartment. Can first-time home buyers rent out or do they have to live in the house for a while?
Answer Based on your income, if it has been stable for the past 2 years and your credit in OK, 580 FICO or higher without any major derogatory i.e. BK, Foreclosure you would be able to qualify for this house with no down payment and very little closing costs.
With regard to not moving into it, that's where there will be a problem. You must move into the property as your primary residence and intend on staying there for a couple of years. HUD promotes homeowners for primary homeowners not so much for investors looking to profit. Your other option would be to put 20% down and buy it as a non-owner occupied or investment property then you could rent it out and stay in your apartment - This would not be a HUD/FHA loan.
Don't forget that your apartment may be nice but you are essentially paying somebody else mortgage down. Rent is not tax deductible other than a very small portion called renters credit and all the interest you would pay on your mortgage is tax deductible.
