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How can I buy a house with small monthly payments at 22 years old and a job?

I really want to get a foreclosed house, but I do not know much about the lending options, mortage rates, and if I can get a grant for the house; how can I apply that to the price of the home?
  • April 10 2012 - US
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Answers (3)

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I recommend you contact a lender in your area. If you are unsure of where to start, the bank you do your business is a good place to start. I also know that most agents have a "favorite" lender or two, so ask friends or relatives who they used when purchasing or selling their homes. If they liked their agent there is a chance you will too. In my area (Northern Indiana) our conventional loan rates are around 3.875%. A conventional loan requires 20% of the purchase price as a down payment. If you don't have 20% to put down an insured conventional loan may work. You still get great interest rates but you only have to put down 10% give or take depending on your lender. An FHA loan requires 3.5% down along with various other requirements like the living conditions of the home must be good etc. an FHA loan rate is about 4%. There are also USDA loans that you can get for no money down at a rate of around 4% to 4.25%. Again these loans have additional requirements that conventional loans do not have. Keep in mind that if you do not have 20% down you will be required to pay a monthly PMI or MI or MIP. All of these are basically the same thing and mean a mortage insurance premium. They insure the bank against foreclosure loss because the lender is taking a bigger risk by lending more money. With a conventional loan the bank is only lending 80% (or less) and with an FHA loan the bank is lending 96.5% of the purchase price. Once you are approved for a loan start searching for a home to buy. Most per approval letters are good for 90 days before you would have to be approved again. Best of luck!
  • April 11 2012
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Most states and many counties have programs specificly for first time home buyers. I work in Marland and the state has a program using an FHA or VA loans and the buyer can get $5,000 to used toward their down payment or closing costs. Most states have something simular, contact a few lenders in your area, not all may be approved by the state to offer the program so call around. Reguardless you will still need to qualifify for the loan. Your age of 22 is not a roadblock, so long as you have a two year work history or combination of full time college and work history and acceptable credit, then you should be fine.
  • April 11 2012
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Profile picture for Dunes ..
Inform yourself..do some basic research
This is a HUGE Financial Decision and choosing a Legit Competent Lender or RE Agent is important/critical....so do not be Lazy or foolish or uninformed

Provided by the Federal Gov.
Find the Right Loan, you can search for specific information, compare options, or take a short questionnaire to determine your eligibility for each program. GovLoan.com

REO-Bank Owned Properties
Many Banks have created Sites for the Public to use (For Free) to view and find Information about the Properties they have Listed for Sale, loan programs ect..
Sites Like..Bank of America...Wells Fargo

You can find links to Bank sites here...Link

The Fed Gov has Sites for its Properties for sale
HUD Homes...Fannie Mae
You can find the links to all the Gov sites here...Link

First Time Home Buyer Info about the Process & Excellent Info/Resources for any Buyer..Buying a Home

Everyone should read the Information on the Department Of Justice
Anti-Trust Division Web Site about all the options Consumers actually have
New business models are emerging that allow consumers to save thousands of dollars when they buy or sell a home


Public Records..Including Foreclosure/Tax Lien/Tax Sale Info
All Free & all the Info direct from your State/County/local gov.
Example: California - Foreclosures and Tax Lien Sales

Be Smart Shop Smart



 
  • April 11 2012
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