You can't use borrowed money as a down payment.
No, you need to pay all the money when you close. You can take a loan now and pay it off with the work loan later if you like and the terms are better.
you better ask HUD - a loan might not be allowed if the house is not in livable condition immediately - especially an FHA loan - those are the strictist
Selling a house is not pay half down and put the rest on a lay-a-way term for 6 months or more..
Once the escrow is opened and a date to close the escrow has been established, who ever the seller is would want the entire purchase price at the close of the sale transaction.
You have a smart real estate agent, you should be listening to this person and following his suggestion about applying for an being approved for a FHA mortgage loan.
FHA does have a mortgage loan product that would allow funds to repair any damage to the property listed on the appraisal. These repair cost would be over and above the cost of purchasing the house you would want to purchase.
Applying for a mortgage loan is not difficult. It is only difficult because you don't do this on a daily basis. It is a drawn out process, but that might cause a little stress, unless you are kept informed of the process and the next steps involved. Ask many questions you do not understand.Ask the same question over and over until you understand the answer.
You have many individuals that would be involved in the selling and mortgage process. Ask them all the questions of each that you need and want. You are gonna be required to pay the monthly mortgage and live with anything that go wrong after the close of the sale transaction.
You might consider applying for a mortgage loan and leaving your current funds as they are. Once you have possession of the house, you are able to make a decision as to if you would want to use these same funds to pay your mortgage loan off in the very near future. This might be the solution until you find out if there are other repairs.
Keep in mind, most loans would require a financial penalty if you decide to pay the mortgage loan off prior to two years elapsing. Once the two years have elapsed you would be able to use your funds to pay the loan completely off or make a decision as to if this is what you want to do.
Buying a house is a step by step process, this is the first step you should take in order to purchase a house. The rest of the steps will fall in place, no matter the type of property you are purchasing.
In order to find out the type of loan programs you are qualified for you will have to fill out a loan application, with a mortgage broker, you can find one in your local telephone book.
Make sure this mortgage broker or mortgage banker is able to do government loans such as USDA, FHA and VA loans if you qualify for one. With a VA mortgage loan you are not required to have a down payment, this will save you on closing cost.
He will fill out this application, which takes awhile so grab your favorite beverage and sit down. Once you have completed the application, he will run your credit report which will have your credit scores. These credit scores will determine your interest rate.
The amount of your monthly debt payments you are required to pay as per your credit report and the amount of your monthly income earned would be used in a formula to determine what is called a debt ratio. This debt ratio would determine the amount a mortgage lender would allow you to borrow to purchase a house. This debt ration should normally not exceed 39%.
When you speak with the mortgage broker you will need the following documents to complete the loan application, there will be others, but this will get you started.
#1 One month of pay stubs for each person that will be on the mortgage.
#2 Six months bank statements from each bank in which you bank as well as statements from any 401K from you place of employment.
#3 Two years of federal income tax along with the W-2 that match.
Once he has all that he need to do he can then issue you a pre-approval letter so you can purchase a home. In this pre-approval letter will be the amount of house you are qualified to purchased.
Make sure, before you get your pre-approval letter, you and your mortgage broker go over all your options, as to all the mortgage programs you qualify for, the interest rate, monthly payments. This will allow you to make an intelligent decision.
Once you have your pre-approval you may now find a real estate agent to find yourself a home or he might have a referral.
If you are getting a FHA, fixed rate, two loans to eliminate PMI like an 80/20 or one loan, if you are qualified for and approved for a 100% loan.
You should select the loan that best suit your financial situation at the time. That could be an adjustable rate loan. It could be a fixed rate loan for 5 or 10 years and then adjust. Some adjustable rate mortgages only adjust once.
What might be good for one person might not be good for you, in other words just because your friends and all your real estate buddies are telling you about the great fixed rate they got, your financial situation might call for something else.
So select the best option for you and your financial situation.
You should also get a Good Faith Estimate (GFE) which will indicate the cost you will have to pay for getting this loan. It will also indicate the amount of your down payment.
Once you have found a home the real estate agent will then prepare a contract for you and the seller to sign. Your mortgage broker will now order an appraisal to show proof of the property value.
The mortgage broker might ask for additional information or documentation, don't get all up tight this is normal, just supply the information or find the documents needed.
After the appraisal has been completed you will be called by your mortgage broker to sign your loan docs so you can take possession of your new home.
Before signing any loan docs make sure they say exactly what you and your mortgage broker went over when you decided on what mortgage program was best for you.
I hope this has been of some benefit to you, good luck
"FIGHT ON"
sure...go to any bank...even with bad credit......figure house is worth 150K...you got 75K.....in six months your work will guarantee another 75K....so, I will give you a loan...you owe me 80 K in 6 months...in 7 months I get the house if you do not pay me....who is your employer...yeah, that's what I thought....fake question
Me and my husband have about 1/2 of the money they are asking for, I am able to get a loan through my work to pay for the rest but it won't be available until 6 months from now. We were wanting to just buy it with cash but may need to apply for a FHA loan. Is it hard to get these loans, this home at the moment is not insurable because when the water pressure was tested it did not hold pressure, that's the only reason why. We are prepared to fix that. But just wanted some information on buying a Hud home. Would they take 1/2 of the asking price and allow us to pay the rest of the money to them in May? We are looking at the house tonight and we are going to ask a lot of questions but I need to know what questions to ask as well.
