A question about financing...

[GWARGHOUL]

Ok, as one or two of ya know, I'm about to get a small settlement from an accident... about $15k.
I've had a job for 6 months.

Theres a loft condo I've been wanting, and a buddy that wants to do the roomate gig (here we go again)...

The condo is about $100k.
My credit isn't good, but its not terrible.
My step-grandmother (whom I am not in touch with)
Told me of a program from the government that matches first time buyers, for example I put in my $15k, they put in a good percentage of that.

Can anybody give me answers/advice/direction on how to go about this dream?

I've never financed anything, I'm lost and don't want to ruin any prospects with ignorance. Maybe its something that I cannot do?

Thanks,
Steve

[Chameleonfong]

Re: A question about financing...

I might be able to give some figures. But i need to know the interest rate the bank will be charging, how long do you plan (or how long the bank offers) to complete the loan, and how much down payment you need to foot up front.

[Chuckracer]

Re: A question about financing...

I'd bank the money, or do a couple of medium term, safe investments, then spend the next three or four years working hard on my credit. Get some cards, buy small shit, pay them off over time. Eat the interest, you won't have any choice at first. Consider it an investment into your future credit.
In a couple years, you credit score will be much better, and THEN you can talk turkey about mortages and whatnot, and not be screwed because of less-than-perfect credit.

If you do it right, you will benefit from home ownership and rising home values. If you do it wrong, you will have screwed yourself beyond belief.

[Chameleonfong]

Re: A question about financing...

Invest in some mutual funds, they don't make a lot of money but they are safe to start the ball rolling. Just talk to one of those bank representative, they will be more than happy to give the necessary details for safe investments plans.

my two cents
Fong

[txcharvel]

Re: A question about financing...

Seriously, contact a "Mortgage Broker". Bad Seed here on the board might be able to help you, but I believe he might do re-financing only.

For an FHA loan with OK credit, 15k is more than enough to get you into a $100,000 home. A good rule of thumb is around 3%-5% down for an FHA loan.

A mortgage broker will be more than willing to help you, because they will be making 1% on your loan (ie...100k loan and he makes 1k). So if there is any way to get you financed, he will do it. Just contact someone and don't be afraid to ask questions. All they can do is say no and give you some direction on what you can do to improve your situation. And don't be afraid to try someone else if you're not comfortable with the first person you talk to. They all offer the same product.

Good luck [img]/images/graemlins/headbang.gif[/img]

[GWARGHOUL]

Re: A question about financing...

So,

Heres what I'm gathering...

Get a secured credit card or two...
Keep working..

Talk to a mortgage broker (what is that under mortgage broker in the phone book?)

As far as these investments...
I do not have a bank, because I owe WAMU $300...
So how would I go about making some small investments and things that you guys speak of?

I really appreciate your guys help.
I could deal with putting the money ina bank account and working on things for a few years, if this is something I can't do now (which I will try when I find out more of this mortgage broker idea)..

[Badseed]

Re: A question about financing...

Txcharvel is right that My company( H & R Block mortgage) can hook you up. Our Loan officers are paid off the amount of the sale, most brokers are paid off of the fees they charge and the rate you pay back in interest. I think it takes away the need and/or want to charge more points(buys down the rate but is rolled nto the loan).

You can get a copy of your credit report from the three reporting services. $7 bucks each and they tell you your score.Our scoring goes 500-619 Non prime(bad to decent)
620 + prime(good credit).the higher the score the better the rate and terms .We specialize in non - prime borrowers.

If your score is low, give us a try or call a lender who does FHA.Personaly FHA has some great and not so great advantages.You cant refinance for 5 years but they give you a good rate.It depends on how long you want to stay in the place.Most people dont stay more then 3-4 years in one place so be sure you want to be ther for 5.They do have down payment assistance programs and no money down programs as well.

YOu could do one of the no money down deals, take the 15k and invest in mutual funds or Roth IRA's which if you invest 3k per year (the max last time i checked), every year til retirement, you should have between 500-750k in the bank.I think that is the best idea since socal security is going to be shit by then since congress wont let you have control over your money.Put your future in your hands.

PM for our 1-800 number or check you yellow pages.15 grand is a gift, use it right and it will last you a long time and do you some good.

BTW we do purchases and re-fi's