should I buy a house?

[rudeguy]

My son's grandpa (my kid's mom's dad) is selling his house. It was appraised at ~$170,000. He is willing to let me have it for $130,000. Great deal, I know. There are a few things holding me back though. I dont have much (hardly any money) stashed away for a down payment. That along with my perfectly crappy credit means I will get raped on the interest rate.

So the question is: do I buy this house, or buy a cheaper one and build up a good payment history and then move to a bigger house later one?

UPDATE: I am waiting to hear back from one of my buddies that does mortgages. He sounds pretty sure he can get everything approved. I now have to figure out a way to fit a couple hundred bucks more into my budget.

I hope this works out.

 

[CPA]

Is he willing to finance it?

 

[rudeguy]

Originally posted by: CPA
Is he willing to finance it?

I have plenty of buddies in the mortgage business. One of whom is famous for getting people in my situation taken care of.

 

[KarenMarie]

If you are gonna finance it, I would say do it now.

Interest rates are only gonna go up!

 

[chrisms]

Yes. Buy a house now

 

[CPA]

Originally posted by: GoodDad

Originally posted by: CPA
Is he willing to finance it?

I have plenty of buddies in the mortgage business. One of whom is famous for getting people in my situation taken care of.

are they just brokers. If so, they still have to follow whatever the mortgage company wants. With bad credit, you definitely will get a higher rate, but probably will still have to put some money down, even if you went with an 80/20/0 loan. But you know what, you won't really know until you talk to them.

 

[rudeguy]

Originally posted by: CPA

Originally posted by: GoodDad

Originally posted by: CPA
Is he willing to finance it?

I have plenty of buddies in the mortgage business. One of whom is famous for getting people in my situation taken care of.

are they just brokers. If so, they still have to follow whatever the mortgage company wants. With bad credit, you definitely will get a higher rate, but probably will still have to put some money down, even if you went with an 80/20/0 loan. But you know what, you won't really know until you talk to them.

very true. I dont have enough saved up to put anything down worth mentioning. With the deal I am getting on the house, I don't know if I can pass it up. That and the fact that my son basically grew up there.

 

[CPA]

Originally posted by: GoodDad

Originally posted by: CPA

Originally posted by: GoodDad

Originally posted by: CPA
Is he willing to finance it?

I have plenty of buddies in the mortgage business. One of whom is famous for getting people in my situation taken care of.

are they just brokers. If so, they still have to follow whatever the mortgage company wants. With bad credit, you definitely will get a higher rate, but probably will still have to put some money down, even if you went with an 80/20/0 loan. But you know what, you won't really know until you talk to them.

very true. I dont have enough saved up to put anything down worth mentioning. With the deal I am getting on the house, I don't know if I can pass it up. That and the fact that my son basically grew up there.

If you have the cash flow to do it, then go for it. Good luck.

 

[wedi42]

try and buy it,
all the mortgage company can say is no.
but i doubt they will, with the price your paying it's like putting $40K down, they can't lose any money on the deal

 

[alkemyst]

Originally posted by: GoodDad

Originally posted by: CPA
Is he willing to finance it?

I have plenty of buddies in the mortgage business. One of whom is famous for getting people in my situation taken care of.

Then you don't need our advice...if he is willing to let the property go like that work out the downpayment sort of on the backend.

most banks are looking at value, rather than loan amount. If you finance $130k and the house goes for $170k they aren't going to be VERY concerned providing you can make the payments to begin with.

 

[LeadMagnet]

Yes

 

[Banana]

Can you buy and flip? Make some $$

 

[rudeguy]

Originally posted by: 1YellowPeril
Can you buy and flip? Make some $$

wouldnt dream of it. If I buy this house, I will probably die there.

I don't like change.

 

[tm37]

If you buy it now and can handle the payments then you should be OK.

In a few years you will have 40K+ in equity and that shoudl help you get a better rate

 

[StageLeft]

If it's HONESTLY worth $170k (ie. not appraised in the same sense that diamond rings are "appraised", then go for it).

 

[rudeguy]

Originally posted by: Skoorb
If it's HONESTLY worth $170k (ie. not appraised in the same sense that diamond rings are "appraised", then go for it).

$170 sounds a little low actually. Its not that the house is anything special, its the school district that it is in. The area is sprouting with developments and the price of housing up there is out of control. I checked out the paper today, and similar houses were going for $225k.

Grr....I DONT WANT TO MOW A LAWN!!!!!!!!!

 

[rudeguy]

so here goes...buddy is running my credit and making some calls for me. I hope this goes well.

 

[maddogchen]

buy it for $130k and sell it for $225k Woohoo! Easy money!

 

What city is it in, GoodDad? Saline, perhaps?

 

[KevinH]

For what it's worht there should be plenty of loan programs that offer up to 100% financing...even for people with bad credit. I'm sure your friend has you taken care of though. Good luck!

 

[rudeguy]

Originally posted by: jumpr
What city is it in, GoodDad? Saline, perhaps?

its in Grand Rapids, but it is in Forest Hills Northern school district.

 

[Rob9874]

Anyone can get a mortgage. Especially only $130K. You can probably get it for no money down, but with a CRAPPY interest rate. Who cares, because you're not going to keep it. Buy it from him at $130K, and sell it right away for $170K. That's called the real estate business. Look at it as your first real estate investment. Use the $40K to clean up your credit, and use the rest as a down payment on another house.

 

Originally posted by: GoodDad

Originally posted by: jumpr
What city is it in, GoodDad? Saline, perhaps?

its in Grand Rapids, but it is in Forest Hills Northern school district.

Yeah, I've heard that area of the state is really rich, but very very conservative too.

 

[z0mb13]

Do it NOWWWWWW!!

seriously thats such a good deal.. buy it!

 

[rudeguy]

Originally posted by: jumpr

Originally posted by: GoodDad

Originally posted by: jumpr
What city is it in, GoodDad? Saline, perhaps?

its in Grand Rapids, but it is in Forest Hills Northern school district.

Yeah, I've heard that area of the state is really rich, but very very conservative too.

/me checks my wallet for voter registration card.

Yep, card carrying republican here.