I am a high school teacher in the bay area and looking to buy a home on a single income. I have saved enough for ~10% of the down payment and was wondering if going with a down payment assistance program would be worth it for me. The program I would use is called landed and is specifically for educators. https://www.landed.com/Basically the way it works is they will match my 10% so that I can avoid the PMI and extra monthly payments in return for 25% of the profits when I sell the home. So when I sell I owe them the initial 10% they invested (~70k) plus 25% of the gain in value. They also take a share in the loss of value as well, same 25%, if that is the case. Although the bay area is a pretty safe bet for housing market. What do you guys think, is this worth it? I also don’t necessarily see myself in this place for a super long time, I imagine when I get married and have kids I will want to move into a larger home with dual incomes (~5 years from now). The other downside is you cannot rent it out either, which might actually be a big deal later as I would not be able to use it as an investment property.
I’ve been saving aggressively for the past 10 years or so and I’d like to buy a home. My net worth is sitting at around $450,000 combining all my investment accounts. Almost all of that is invested except for around $80,000. I have kept this in cash anticipating a downpayment. My spouse and I have a joint income of around $200,000. I make up more than half of that. We have no debt. We were pre-approved for up to a $500,000 mortgage.How much do people generally put down for a downpayment? How much of your net worth is generally wrapped up in home equity? Depending on the downpayment I’ll have to sell a good chunk of equity and I’ll obviously need to pay capital gains on that.Is it reasonable to put $200,000 down on a home to keep the mortgage down to around 3,000-3,500 per month? If it’s much higher it’s getting close to nearly half of my monthly income. Note that I’m not taking into account my partner’s income but I figured I’d do that to be safe. My industry always has a need for talent but I could see me needing to relocate at some point.We have been looking at homes in the 500K range but in some areas the property taxes are substantial. Usually they’re around 2.2% of the purchase price of the home. This is pricing us out of certain areas.I don’t want to buy too little home but, I don’t want to be over leveraged either. Many of the homes we’ve looked at are older and could require maintenance. The lenders I’ve spoken to have said I’m in a great position to afford a 600K home if I wanted it but, that seems a bit high. I’ve been thinking about asking a CFA or a CPA to step me through our long term financial goals and how they line up with buying a home. I’m suffering from analysis paralysis. Thank you Reddit.
Hey guys,I closed on a home for the first time back in September and the closing attorney e-mailed me today to say that when the title search was done they were not told about city tax on the property. So when we did the original loan the city taxes were left out of the escrow and now the lenders will have to adjust our monthly payment. Does this happen very often? The additional amount isn’t bank breaking and taxes are taxes but just wondering if there is anything I can or should do in this situation. Thanks!
Of course, the appointment for listing photographs is today and it snowed yesterday.Thoughts on listing photos showing the home in the snow? Is this something I could use to my advantage or is this a realty faux pas?
hi,we’re selling our condo and working with a realtor who never had us sign a contract. he balked when we asked for one. he is listing our place on MLS and has himself marked as working exclusively with us. we’re looking for other realtors (he’s not doing a good job) and one of them mentioned it’s illegal for him to list on MLS without a contract. is that true?thank you in advance for any help.
I purchased a home through Fannie Mae Homepath. In the finished basement, new Carpet had been installed. I thought this was unusual for a foreclosure, but didn’t give it much though. I now found out that there was a huge crack in the concrete beneath the carpet, and water occasionally seeps up into it, particularly after snow (though not after even very heavy rains).I believe the agent who did the listing for Fannie Mae knew of the crack and did not disclose. Obviously I can’t prove it directly, but he knew the carpet was brand new, and the crack was large enough it didn’t appear there overnight, it’s not like I live in a highly seismic area or anything
Hey all – I’m looking at an investment property and would like some opinions.The property is a 2fam and in line on $/sqft for the area, but prices have pulled back a little bit in recent months. The numbers make sense on a opex perspective and I should be able to clear ~2500/mo on it.The caveat is that there are other properties in the same price range that have parking and a bigger back yard, but not walking distance from the train station.My question is: Would you pay the premium for location, although the property itself may be a little worse than other comps in the same area? Factoring in potential value decrease in the coming 3-5 years, etc.
I’m looking for a home in a sought after area and I’ve lost multiple homes in my price range ($800-$900k for 2000-2500 sq ft) to bidding wars. There are sometimes very small / run-down homes that go for approx $500k and these are usually purchased by builders who then take those lots and build new homes that are out of my price range ($1M-$1.3MM, 3000-3500 sq ft).So my question is, as a non-builder with no expertise in this area, should I try and compete with them on the $500k “homes” (basically pieces of land – I don’t think much of the existing home is used. Probably foundation and basement). And then get an architect, builder etc. I would build something much smaller than they do that would fit into my price range.Thoughts on this? Is it even possible to be competitive with builders when putting in an offer? Is it too risky bc I don’t know the costs involved in building like a builder does? How would I go about this? Any advice is appreciated.Location: NJ
Has anyone ever figured out a way to reverse listing pictures back to normal? I’ve seen a few that were just a Horizontal stretch, which is easy enough, but almost all of them are stretched from center. So the dead center looks mostly right, but then each mm from center just gets more and more stretched.I just crossed a full year of house hunting, and even knowing what they do with these pics, some are just really hard to imagine properly. I would have saved many a trip and a ton of time from both my family and realtor if i could just see some of this with a hint of reality.
So, settled in Oct 19th, and at the walkthrough the sellers were still in the process of getting things out of the house so some areas weren’t as accessible as I liked. They were nice older people that were very friendly, so I didn’t push the issue. Shame on me I know. Now that I’ve been in the house, I found out that instead of getting the ducts cleaned as mentioned in the addendum as being completed, they cleaned what you could see. There was also some rot on the cedar siding, and they only fixed what was accessible during the walkthrough. The blatant rotted board was fixed, but the other boards were just painted. Also, not specifically mentioned in the contract, but the house was left absolutely filthy. This is in Delaware, and just trying to weigh my options. Tried contacting them directly to no avail.My next stop will be the closing attorney, but figured I’d throw it out to the group mind. Thanks.