| Posted By |
Message |
CaMacho
Sisters :)
Member since 7/06 15112 total posts
Name:
Jess
|
Anyone buy a house in Florida recently or anyone buy a house with 100% financing?
DH and I are looking and found two that we love last week. We will probably make an offer one of them this week!  
Anyway... has anyone bought a house with 100% financing? Since the prices of homes are so low here we're thinking of doing 100% financing and then using our money (that we would have put for a down payment) towards updating the house.
Is this a bad idea?
We're first time home buyers, if that makes any difference.
Just curious if anyone had experience with this? TIA!
|
Posted 2/13/08 12:09 PM  |
| |
|
Long Island Weddings
Long Island's Largest Bridal Resource | Prudential Douglas Elliman Real Estate |
SweetTooth
I'm a tired mommy!
Member since 12/05 20105 total posts
Name:
Lauren
|
Re: Anyone buy a house in Florida recently or anyone buy a house with 100% financing?
It is very difficult to get 100% financing these days. If you can put down 3-5% you'll have a much easier time!
Good luck!
|
| Posted 2/13/08 12:26 PM |
| |
|
sunnyplus3
:)
Member since 11/05 8749 total posts
Name:
|
Re: Anyone buy a house in Florida recently or anyone buy a house with 100% financing?
I personally think 100% financing is a bad idea anywhere but Florida is partially in the mess its in because of 100% financing & other creative lending practices.
It is likely that Florida home values are not done "adjusting" from the over inflated prices of 2-3 years ago, so if you buy today with no money down you have no equity & if god forbid you need to sell or access money for an emergancy in the next couple of years you won't be able to because you'll be "upside down" on your mortgage. In other words you'll owe more than its worth.
This is an unfortunate scenario that has played out many times before in Florida & other places(its even happening to some people on LI now). I would suggest really shopping hard & getting as much info as you can about very recent(6 months or less) comps in the areas you are looking in, putting some money down & saving or using 0% credit cards to make improvements. This is not a good economy to have no equity IMO.
I hope you find a house you love!!!
Good luck !!
Message edited 2/13/2008 12:28:48 PM.
|
| Posted 2/13/08 12:27 PM |
| |
|
leese
Sarge!
Member since 5/05 1965 total posts
Name:
Leese
|
Re: Anyone buy a house in Florida recently or anyone buy a house with 100% financing?
To be honest, 100% financing is hard to get (not IMPOSSIBLE, but hard) and probably harder still in Florida due to the market situation.
I'd definitely seek out lenders to see if you can make it happen, but be prepared to have to switch your financing plans if need be.
Good Luck!!!!!
|
| Posted 2/13/08 12:30 PM |
| |
|
Kara
Now Zagat Rated!
Member since 3/07 13217 total posts
Name:
They call me "Tater Salad"
|
Re: Anyone buy a house in Florida recently or anyone buy a house with 100% financing?
While I don't ever think 100% financing is a good idea, now is a particularly horrible time to try to do that. First, as others indicated, right now it's nearly impossible to obtain.
Even if you were to get it, though, you'd either (1) be paying PMI or (2) have 20% of your mortgage loan be in a higher interest HELOC. I don't know of any programs still in existence that would allow most buyers to get around that anymore.
Additionally, while I think it's a decent time to buy (low market, low interest rates), you cannot predict the future. The housing slump could last at least a year or more longer. What happens if you have an emergency and have to sell the house in 6-12 months... now it's worth less than you paid for it, despite the upgrades and updates you put into it. You can't sell b/c you owe more than the house is worth.
It's just not a wise financial situation in this market. (I don't think it's a wise choice anytime, but it's particularly bad right now.)
|
| Posted 2/13/08 12:34 PM |
| |
|
CaMacho
Sisters :)
Member since 7/06 15112 total posts
Name:
Jess
|
Re: Anyone buy a house in Florida recently or anyone buy a house with 100% financing?
This is great advice, thanks!! You all pretty much agreed that 100% financing is a bad idea.
Dh and I were just throwing that idea around b/c the house we're looking at will need a little updating and it would have been nice to get it done right away before we moved in w/ the $$ we have saved. But, it's also fine as it is and if we need a year or two to save money to update then we can do that too.
It is a great time to buy here... interest rates are at 5.5-5.6% right now and a couple of the houses we're looking at are about to go into foreclosure so they are dying to sell.
The tax cut was also passed here in FL so our taxes will be 1.8% of the purchase price less $50k.
We're excited... wish us luck!!
|
| Posted 2/13/08 4:18 PM |
| |
|
sunnyplus3
:)
Member since 11/05 8749 total posts
Name:
|
Re: Anyone buy a house in Florida recently or anyone buy a house with 100% financing?
sounds great! What area of Florida are you in?
Thank god for the tax change, my family down there was getting killed with the taxes!
You'll make the updates in time....better to have something for a rainy day than stainless steel appliances or whatever, KWIM?
GOOD LUCK!!!!
|
| Posted 2/13/08 4:26 PM |
| |
|
mrswask
Pookie Love
Member since 5/05 20229 total posts
Name:
Michal
|
Re: Anyone buy a house in Florida recently or anyone buy a house with 100% financing?
Jess - so excited for you!! Where's the house, in Boynton?
|
| Posted 2/13/08 7:02 PM |
| |
|
katiebell
Hoping, wishing, waiting....
Member since 8/06 1418 total posts
Name:
K
|
Re: Anyone buy a house in Florida recently or anyone buy a house with 100% financing?
YES!! We were first time homebuyers and we just bought our house in Oct.(in VA) for 100% financing, and NO PMI!! Our loan officer really worked hard finding a great loan for us. It is a 30yr. fixed. 10 yr. intrest only.
Message edited 2/13/2008 9:21:44 PM.
|
| Posted 2/13/08 9:19 PM |
| |
|
christys0925
LIF Adolescent
Member since 9/07 512 total posts
Name:
Christy
|
Re: Anyone buy a house in Florida recently or anyone buy a house with 100% financing?
We did a 100% loan and it was the best way for us. I can give you a list of banks to check out who did them all the time if you would like. Just let me know. Good Luck!!!!!!!!
|
| Posted 2/13/08 11:44 PM |
| |
|
CaMacho
Sisters :)
Member since 7/06 15112 total posts
Name:
Jess
|
Re: Anyone buy a house in Florida recently or anyone buy a house with 100% financing?
Posted by mrswask
Jess - so excited for you!! Where's the house, in Boynton?
Thanks! Yea it's in the boynton/lake worth area. It's fun looking for houses here b/c they are so affordable!!
How are you guys doing????
|
| Posted 2/14/08 1:30 PM |
| |
|
bikramaddict
mommy-to-be
Member since 8/06 4376 total posts
Name:
|
Re: Anyone buy a house in Florida recently or anyone buy a house with 100% financing?
we closed dec. 06 with 100% financing. we did the math though and because the purchase price was relatively low for nassau, putting 5% down would make a small difference in our monthly payments and we'd rather have the $$ in the bank and do the kitchen. our house was also worth a lot more than we paid due to a very motivated seller though....he listed about 25K less than its worth.
|
| Posted 2/14/08 1:39 PM |
| |
|
CaMacho
Sisters :)
Member since 7/06 15112 total posts
Name:
Jess
|
Re: Anyone buy a house in Florida recently or anyone buy a house with 100% financing?
Posted by RandJ0806
we closed dec. 06 with 100% financing. we did the math though and because the purchase price was relatively low for nassau, putting 5% down would make a small difference in our monthly payments and we'd rather have the $$ in the bank and do the kitchen. our house was also worth a lot more than we paid due to a very motivated seller though....he listed about 25K less than its worth.
That's exactly what we were thinking... save the $$ to update the house. I can see both sides I guess on how 100% financing is good and bad.
The house (or two) that we are interested in are both listed for well below what they are worth (and well below what most of the other homes are going for in the development).
I guess we'll see what our mortgage broker says... we have a lot of research to do.
Thanks!!
|
| Posted 2/14/08 2:54 PM |
| |
|
bikramaddict
mommy-to-be
Member since 8/06 4376 total posts
Name:
|
Re: Anyone buy a house in Florida recently or anyone buy a house with 100% financing?
Posted by CaMacho
Posted by RandJ0806
we closed dec. 06 with 100% financing. we did the math though and because the purchase price was relatively low for nassau, putting 5% down would make a small difference in our monthly payments and we'd rather have the $$ in the bank and do the kitchen. our house was also worth a lot more than we paid due to a very motivated seller though....he listed about 25K less than its worth.
That's exactly what we were thinking... save the $$ to update the house. I can see both sides I guess on how 100% financing is good and bad.
The house (or two) that we are interested in are both listed for well below what they are worth (and well below what most of the other homes are going for in the development).
I guess we'll see what our mortgage broker says... we have a lot of research to do.
Thanks!!
Jess, just be careful. i'm sure you know this, but a mortgage broker isn't a financial advisor. Don't let him tell you what you can afford.
I recommend buying mortgages for dummies. it helped a lot. also, just fyi, if your closing costs sound too low, it's probably b/c your broker is getting $$$ through back points which as i understand it works by him uping the interest rate. I could be wrong about it that though, but its something to look into. i didn't learn this until after the fact.
good luck -- keep us posted and put up pics if you can!  housedust for you.
|
| Posted 2/14/08 4:14 PM |
| |
|
CaMacho
Sisters :)
Member since 7/06 15112 total posts
Name:
Jess
|
Re: Anyone buy a house in Florida recently or anyone buy a house with 100% financing?
Posted by RandJ0806
Jess, just be careful. i'm sure you know this, but a mortgage broker isn't a financial advisor. Don't let him tell you what you can afford.
I recommend buying mortgages for dummies. it helped a lot. also, just fyi, if your closing costs sound too low, it's probably b/c your broker is getting $$$ through back points which as i understand it works by him uping the interest rate. I could be wrong about it that though, but its something to look into. i didn't learn this until after the fact.
good luck -- keep us posted and put up pics if you can! housedust for you.
Our mortgage broker is also a friend, but yea we wouldn't let him talk us into anything we can't afford. We've been doing our research the last few days and our realtor said when we make an offer we can ask the seller to pay the closing costs... he does that all the time and usually if the seller wants out they will do it.
Our closing costs are probably going to be about 2% of the purchase price. The taxes for this year on these homes are super low b/c the homeowners bought in 2000 or 2001.
I'll definitely keep you posted! We're going again on tuesday night to see 2 of the houses we liked.
|
| Posted 2/15/08 9:00 AM |
| |
|
sunnyplus3
:)
Member since 11/05 8749 total posts
Name:
|
Re: Anyone buy a house in Florida recently or anyone buy a house with 100% financing?
My BIL & SIL lived in Lake worth for years before they moved to wellington. I liked their Lake Worth house better. We flipped a house in Lake worth in 2003. My BIL & SIL we in the sub division Smith Farms, its really nice there!
Good luck!
|
| Posted 2/15/08 4:06 PM |
| |
|
CaMacho
Sisters :)
Member since 7/06 15112 total posts
Name:
Jess
|
Re: Anyone buy a house in Florida recently or anyone buy a house with 100% financing?
Posted by KellyFG
My BIL & SIL lived in Lake worth for years before they moved to wellington. I liked their Lake Worth house better. We flipped a house in Lake worth in 2003. My BIL & SIL we in the sub division Smith Farms, its really nice there!
Good luck!
You have FM!
|
| Posted 2/15/08 5:01 PM |
| |
|
jana
LIF Adult
Member since 3/06 1134 total posts
Name:
|
Re: Anyone buy a house in Florida recently or anyone buy a house with 100% financing?
I'm across the street from Smith Farms at Journeys End/Grand Estates.
|
| Posted 2/15/08 8:12 PM |
| |
|
