shuiend

iTrader: (24)

Ryan_G

iTrader: (8)

The only thing I would be concerned about is that you have now entered into a landlord relationship with some very close friends and your girlfriend. This can become much more complicated if someone is down on their luck or causes damage to the property somehow. I am always very careful about mixing business with friends and family.

aidandj

iTrader: (5)

<p>Good point. Again why I'm leaning more towards my parents fully owning the house. A lot of good points here, and things to take into consideration.</p>

18psi

iTrader: (76)

sixshooter

iTrader: (12)

aidandj

iTrader: (5)

<p>Spoke to a mortgage officer (at my local credit union, member for 15+ years) and a realtor (family acquaintance, probably the biggest hardass I've ever met) and have some plans in motion. Need to fill out paperwork for pre-approval, and then meeting with the realtor on Friday.</p><p>I also need to sit down and actually decide if I can do this. That parts on me though.</p>

hi_im_sean

iTrader: (3)

He made a great point. I cannot impress enough how sour things can go with friends, even your "BFF". Dont ask me how I know.

Having said that I bought my house when I was 23, and its one of the best financial decisions Ive made. I did of course get $8k back for first time home buyers tax credit, I bought a spankin new house with a warranty and little concern for breakdowns and maintenance, I bought just before the lowest point in the market(this model was selling for over $300k in 08, i got it for $117k desperate developers ftw), and I was in a financial position where I could carry the mtg on my own if I had to.

MicaCeli

iTrader: (1)

I could not buy a cardboard box to live in for that much in this area. But I has two houses. Being house poor is fun.

aidandj

iTrader: (5)

<p></p><p>I'm in a position where I can carry the mortgage on my own, just not the down payment. The current idea is for me to pay my parents back over the next 2-3 years. Which would take all of the money I was planning on saving as cash/other investments. This doesn't seem like too bad of an idea because its not like I'm throwing that money away, its building equity on the house. And then in 2-3 years the house will be all mine and my parents will be out of the investment.</p><p>The housing market in Portland is weird. Houses are cheap, but desirable. There is even a trend where investors come around with cash and buy houses as investments, which is really hard to compete with.</p>

shuiend

iTrader: (24)

I highly suggest buying book and giving it a read. I bought a garage with a detached house about 2 years ago and it has been a huge learning experience. That book was a big help with getting the buying process figured out.

As for the down payment and your parents helping. Have them give you the money, then you will need to wait 3-4 months before you start applying for mortgages. Otherwise it will raise a large red flag for that deposit.

aidandj

iTrader: (5)

<p>As stated earlier in the thread, and the mortgage officer I've been talking to don't have any issues with a gift for the downpayment.</p><p>Going to download that book tonight and get started on it.</p>

shuiend

iTrader: (24)

Who is the mortgage officer? Was he recommended or is he in any way associated with your realtor? If so then find someone else. Realistically you want to not use any of the recommendations from your realtor for lawyer, inspections, mortgage. To much possible conflict of interest to get any of those guys from your realtor.

Even if one mortgage officer says gift for downpayment is fine, the underwriter might disagree. The original mortgage person I talked to at my realtors company said it would be no problem to do that. When I started talking to a mortgage broker he informed me otherwise. His advice is sometimes it works out, but more often then not it can cause problems when getting to the underwriter stage. Underwriters are weird and will request all sorts of things. I sold my AR-15 during the gun craze to use as downpayment money. Underwriter wanted to know details of where that $1800 came from. I ended up supplying a receipt from the local gun shop that sold it to prove the money did not come from any strange places or anything

Here is a link for a bit more info about gifting downpayment money.

aidandj

iTrader: (5)

<p>The mortgage officer is through my local credit union who I have been with for 15+ years. I just finished the application and my info is being sent to the underwriter today. I'll find out more on Monday.</p><p>I'm meeting with the realtor today.</p><p>During all this I am still looking for a rental, so this is still just a second option, I am not set on buying a house.</p><p>My dad is a contractor and I assume he has a guy for inspections and whatnot, that will be discussed too though.</p>

z31maniac

Inspections? How long has it been since you've done this?

All the regulations after the housing crash mean the inspectors come from a pool and get selected at random vs the bank calling out their guy and telling them to appraise for XXXXXXX amount.

It's been this way for like 7 years.



Also, OP. As someone who just got out of a house/divorce, liquid cash >>>>>>>>>>>> equity.

aidandj

iTrader: (5)

<p></p><p>Thats good to hear.</p><p>And I agree, in some ways. I'm single (in the eye of the law). No dependents. And willing to live with roommates. If this was purely an investment to try and make money I would not even be considering it. But the fact that it also gives me a roof over my head (and a garage for my toys), is the driving factor.&nbsp;</p>

aidandj

iTrader: (5)

<p>Lars, thanks for that link.</p>

shuiend

iTrader: (24)

House inspection is different from an appraiser. I got to choose what what inspection company I wanted to come out and check out the house. This was on my dime up front. The bank choose their on appraiser to come out and appraise the property on their dime, later rolled into my closing costs or some ****.

I put in my offer on my house in March 2013. I have helped several friends buy houses since then and they have all done the same thing.

z31maniac

I was just basing that on you saying paying back your parents would prevent you from having the liquid cash to fall back on.

Who will be responsible when the $7k AC takes a ****, or the sewer/water line has to be dug up and replaced, etc (forgive me if I missed that earlier in the thread).


Ooops, your correct. Was mixing up the 2. I bought the house I gave up back in 2009, so it's been awhile.

aidandj

iTrader: (5)

<p></p><p>Oregon, we don't need no stinkin A/C.</p><p>But point taken. That is also being discussed between me and my parents. Another thing to add to the list.</p>

z31maniac

Good deal.

If it was me? I wouldn't want to live having to answer to someone else because "well you need to do this because we did this for you."

I bought my house on my own at 27, no help from parents, etc. I refuse to let other people have something to hold over me.