Is There Such a Thing as TOO SOON? - Posted by Newbie

Posted by PBoone on December 24, 1998 at 21:42:08:

There is quite a bit you left out of the post, but to be able to assume a non-qualifying fha is always a great idea. Again alot you left out such as FMV, 27K in equity what does that mean ? Could you rent out the home with cash flow?
There are many wonderful things that will happen once a person applies themselves so being new is not a viable reason to believe its too soon.

Is There Such a Thing as TOO SOON? - Posted by Newbie

Posted by Newbie on December 24, 1998 at 20:23:53:

I am moving to NC within two weeks in hopes of establishing a career and residence.

However, the career is in the making (interviewing) and the residence is well . . .

I found a townhome in which the seller has an assumable, non-qualifying FHA loan and I would need to just get a second mortgage for the equity which is about 27K.

My parents think that it is crazy to buy before I have a job, but paying over 10K in rent for the last couple of years has me thinking otherwise.

To kept this message “short”, is it possible for me to get a loan with a job in name (a new hire) or my parents co-sign a loan with me taking it over in a year or less?

What about balloon loans?
Or should I scrap the whole thing and get to know the market and area better?
(This townhome is in a great location - less than 6 miles from downtown Raleigh.)

Help! I need advice and soon.
After all, I hear the holidays are the best time for negotiations.

Thanks to all, and to all a good night!
Merry Christmas.

Re: Is There Such a Thing as TOO SOON? - Posted by SCook85

Posted by SCook85 on December 26, 1998 at 24:58:20:

You need to decide whether it is in your best interest or not to buy. I’ve moved a lot and have lived in Raleigh (love it there). But I never liked the first place I lived in any city I have been in.

As far as buying the home. Unless the sellers need there $27k in cash now, I would ask them to hold the second for $27k and assume there mortgage. No banks need to be involved. You could offer a balloon on the second in a couple of years if that maked the sellers happy. Then when you get established you can refi and pay them off.

Hope this helps!


Re: Is There Such a Thing as TOO SOON? - Posted by David Alexander

Posted by David Alexander on December 25, 1998 at 12:34:30:

Why Qualify, take the NQA subject to in a trust.
Why jeapordize your credit or your parents? You have left alot out. Why are the people selling? How much down are you having to come up with? If you bought
to rent are sell on a wrap, would you make money? Are houses appreciating quickly in your market? Know your
exit in case you decide to move or sell. You make your money going in to a deal. Only you can answer the question of whether or not it is to soon.

David Alexander

Re: Is There Such a Thing as TOO SOON? - Posted by Rob FL

Posted by Rob FL on December 24, 1998 at 23:18:13:

In my opinion it would probably be wise just to rent for at least a few months for 2 reasons. (1) What happens if your job doesn’t work out? Usually jobs have a 90-180 probation period. It would probably be in your best interest to wait that time out unless you don’t need the income to make your house payments. (2) What if you end up not liking NC? No offense to anyone, but I know people who have moved here to FL and decided they don’t like the heat or the people or something else and decide to move back where they came from. You should probably give a few months to make sure you like the area before you commit to a long-term stay.

my .02

Re: Is There Such a Thing as TOO SOON? - Posted by MilNC

Posted by MilNC on December 24, 1998 at 22:29:21:

Lest your post die a holiday death…

What about a lease option, even with your parents the ultimate buyer, co/buyer or assigns, or they lease option it and assign it to you. what if they buy it on a lease option, and you are the tenant, and
if it doesn’t work out, you leave, but if it does work out (your job), then
you have the option to buy it (from your parents).
I am not knowledgeable in this, just familiar enough
to ask questions.
How much is the FHA assumable?

If your job falls through,and you had a lease option,
then no one is forced to
buy the property.

Are you more worried about the FHA or about the 2nd?
Which one are you not sure you will qualify for or be able to continue?
Most of this board is devoted to investing in properties without having a job to qualify you.

But, you have a nice opportunity in a boom town.
I heard what you said about the 10K rent. Ouch. So
you are wanting to avoid that rat hole.

You, however are looking for a personal residence.
The terms sound ok, and could be a good deal, but
you need an out. you don’t want your parents stuck
with this. Worst scenario–job doesn’t work out,
then what. Well, deal with that up front. Don’t hope.

Aaack! Holidays best time for negotiation? I think you’re thinking cars. Plus, you haven’t had time to check this out: are the holidays going to make it easier for you to get comps? And you’re out of town?
(and the court house is closed one day next week, and the rest of the time is rush rush? )I dont’ think so.

It’s not that it’s a bad deal,but that you
are too desperate.

Make it work out so that your parents could buy this
and win (break even or get a better- than- their- customary return) even if your job doesn’t work out.
Would your parents benefit or at least not suffer from owning this property
if you didn’t live there? Possibly. Since you were
going to live there anyway, it wouldn’t be too bad
a property.

So, consider a lease option in your plans. I know how
hard it can be–move to a new town and be locked in
for a year on an apartment lease. You don’t even know if your job will work out yet. Don’t get involved in financial committments you can’t get out of.
I hope others will comment on the lease/ option
aspects of this. That was all I could think of, that
is just my area of interest.

I look forward to hearing good ideas from others more experienced than I am.