unemployed but want a mortgage

[megabites]

Thank you for the fast replies and welcome.

I actually hadn't even thought about the 8K tax break. Is it conceivable that at the end of the year a 15K house would cost me less than 9K once I factor in misc costs?

Joan.of.the.Arc. for Fannie Mae I did a search with only the state and max amount filled in. I used Illinois and max of 20K then sorted by price and went to the last page. There were a few under 5K even, but they do require a lot of work which is why I'm shooting for around 15K. With the 8K kickback... sweet. =)

Closing costs are typically 1-2% and the property tax is actually pretty feasible. My main concern is utilities.

I'm also thinking along the same lines as hypersion (buy and rent to pay for mortgage)

I did end up calling a few banks and asking about a mortgage and of course they said along the same lines as everyone on this board about not qualifying. However, they did say that if I could just get a job, ANY job, even if it only netted 600 a month I would qualify for a loan. Which was really funny to me it because it would cost more than 600 a month for me to rent without a roommate.

I'm thinking about maxing out my credit card that offers 0% apr on convenience checks for 12 months and consolidating it with my savings to purchase a cheaper house and just keeping my one cc as a back up in case of what not expenses. Do you guys no of any other odd ways to get fast cash like the? Excluding anything illegal of course.

In between I am of course job hunting.

[megabites]

Oh yeah my other idea was to get a larger than needed school loan, getting the excess refunded by the Bursars office at school and using it to pay for the house. I can defer paying anything back until I drop or graduate from school and depending on what kind of loan I get I might not even have to pay interest while in school. The only down side is financial aid is taking a long time to get back to me. So I was thinking of using the private school loans from places like citibank. Do any of you know if private loans like that require me to have a job, do they have a strict of a requirement as a mortgage or are they as easy to get as normal school loans from FAFSA?

[red92s]

Oh yeah my other idea was to get a larger than needed school loan, getting the excess refunded by the Bursars office at school and using it to pay for the house.

But how would you actually BUY the house? When you buy a house someone pays the seller the agreed upon price (usually your lender). If you don't have a mortgage lender to do that, you better have the cash on hand, and you are not going to get an extra $100k-200k in school loans for a single year. A seller isn't going to accept a personal installment loan from you of $25k a year for the next 4 years, even if you could get student loans for that much additional cash.

You are going to have a tough time convincing a lender to give you a mortgage because you "have income" that is coming from a loan. Sure, you just "increased you income" but you also simultaneously increased your debt, whcih they will also be aware of. "Mr. Jones I see here you are now claiming $3,000 a month in income, that's great. But I also see here you have also acquired an additional $30,000 in debt, so while your debt-to-income ratio is no longer ZERO it's still quite low".

[thekid]

I'm not sure I understand, is the OP saying that there are houses selling for 3K$ - 15K$?????????

[GREENBACK]

I'm not sure I understand, is the OP saying that there are houses selling for 3K$ - 15K$?????????

This is a possibility in some areas, although they aren't great homes or neighborhoods from what I've seen. There are great discounts on foreclosed homes in poor neighborhoods too right now. Detroit is an excellant example.

To the OP's point; Thought I might be able to add something but it's all been stated emphactically to the OP. Good luck and follow the above advice.

[red92s]

This is a possibility in some areas, although they aren't great homes or neighborhoods from what I've seen. There are great discounts on foreclosed homes in poor neighborhoods too right now. Detroit is an excellant example.

To the OP's point; Thought I might be able to add something but it's all been stated emphactically to the OP. Good luck and follow the above advice.

If I had to choose between renting at $700 a month for life, or living in one of the homes, in one of the areas, that you can probably buy for $3,000 . . . I'[d rent, hands down. I wouldn't get that warm fuzzy "homeowner" feeling we've be conditioned to seek out at all costs, but I probably won't be dead in a ditch either.

[disneysteve]

I've read a number of articles about some of the dirt cheap houses in places like Detroit. Some of them are perfectly nice in decent neighborhoods. A lot of younger couples are buying them and revitalizing neighborhoods.

[Alex_Adviser]

For Home Loans for Unemployed People, you can search over internet and you will find many loan lending companies or the lenders who are providing Home Loans for Unemployed People with fast and easy way of processing. You are to select one lender which you find the best after going through their sites. After reading the terms and conditions of the selected lender you are to apply online by filling an online application form and after verification the cash will directly be transferred into your account.

[mnpqrd]

There is a good chance that a house in this range is a fixer upper and could cost a lot to make it liveable. I can imagine it's expensive to replace the roof, floor, drywall, ... so don't forget to include maintenance costs.

[wincrasher]

Sounds like he's going to do it anyway regardless of the sound advice here.

Any house that cheap is going to be a huge time vampire fixing it up as well as the expense.

You'd still be better off finding someone that already has a household set up and needs a roomate. The few hundred you'd spend each month is far less that the expenses and time dedicated to fixing up a house while you are persuing your degree.

Show me a house you can buy for $15k and have a roomate move in day one and pay you $700 a month rent. Post the mls link.

[anonymous_saver]

OK, I'm just gonna say it. I think this is a horrible idea. Buying an investment property at $15k or so is probably only bring you more stress than benefits. I think other things should be much higher priorities for you, like finding a new job. Sorry, I just thought it needed to be said.

[Justice44]

Re: Unemployed but want a mortgage

Without a job, there is not a bank in this nation that can/will give you a loan. You will fail to meet the most basic criteria for getting a loan: Being able to pay it back.

Rent till you get back on your feet. You are not throwing money away renting in this market.

Thanks banditfist for a blunt but very true statement.

[SavingsDad]

Just wanted to add a few things to this discussion:

The $8k government assistance for buying a house is based upon purchasing a house for $150k. You have to purchase a house $150k or greater to get the full $8k rebate. If you are purchase a house for $15k, you would get a rebate of $800.

Also, for these houses you're finding that cost $15k, there often is stipulations on the contract which require you to bring the house up to code. Often the plumbing/wiring has been ripped out and requires extensive work to bring the house up to code.

Good luck!