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What order should I buy 2 houses in?

I am getting a medical settlement of around $200,000 soon and am planning on getting a $200,000 house and putting $100,000 down. In the last 5 years my mother in law has lost all of her retirement and so I am thinking I will also be buying a $50,000 house outright for her. I am currious if it would be more beneficial to buy the house outright first in order to show bank more net worth or in I should get it 2nd so I can get a first time home buyers loan? Thanks for any help with this issue.
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June 22 2012 - Rogers
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Answers (4)

You are in a wonderful position because of the access to funds from your settlement. Before purchasing any property I would sit down with a CPA or financial advisor & then speak with a local mortgage company. There are a number of loan types that you may qualify for. You'll want to select a loan product that will be beneficial to you long term.

You are also in a great market for a vibrant inventory of homes & competitive pricing. Once you speak with a financial advisor & mortgage company select a local agent that will be able to meet your needs & expectations.

Best of luck!
Julann Carney
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July 01 2012
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Post your question under "Mortgages" and you'll be more likely to get responses from lenders.

I am not a lender (nor a REA), but buying a $50K house outright should be a slam dunk (i.e., no lenders involved, no need to "qualify", appraisal is for your protection only, etc.). The only question in the transaction should be "do you have the cash in the bank?"...and you should.

If there's any breaks/help available for first-time buyers, it would make sense that it would be more helpful for the $200K house - and any relief onn the interest rates would also be more helpful there (since there won't be a mortgage on the $50K house).

My non-professional-but-makes-sense-to-me $0.02. Still recommend talking to an experienced lender to get definitive guidance.
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June 23 2012
I totally agree with Nan's recommendation, have a word with an investment counselor and explore both ideas.  The best of luck!!!
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June 23 2012
Dont assume anything,  Talk to a local reputable investment counselor before doing anything
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June 23 2012
 
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