Two Plus Two Newer Archives  

Go Back   Two Plus Two Newer Archives > Other Topics > Business, Finance, and Investing

Reply
 
Thread Tools Display Modes
  #11  
Old 11-30-2007, 10:08 AM
cwar cwar is offline
Senior Member
 
Join Date: Dec 2005
Location: Cwar LLC
Posts: 2,491
Default Re: Looking for some general advice about buying my first house.

This is not necessarily true its always going to be hard as a pro gambler IMO your best bet is to have an LLC that you have paid yourself out of for 2+ years. That being said there are so many ways to creatively finance this kind of stuff like owner financing, wraps, assumptions, private second loan or taking on a partner.
Reply With Quote
  #12  
Old 11-30-2007, 10:30 AM
spex x spex x is offline
Senior Member
 
Join Date: Jun 2005
Location: who dares wins
Posts: 569
Default Re: Looking for some general advice about buying my first house.

There are lots of banks now that'll give you a slightly higher interest rate in exchange for no PMI. REcently banks started realizing that for decent credit individuals its better for them to self insure their own mortgages and charging 1/4 point or so more in interest.

Another way to avoid PMI is to have the seller carry a second mortgage for the other 10% of the purchase price. That is better for you anyway since the extra payment is going toward building equity rather than into the pocket on an insurance company.

If I were a pro gambler, what I'd probably do is start by approaching small local lenders - credit unions and local banks. They have a lot more flexibility than the big boys and if you can plead your case effectively, you should be fine. If you've got two years of living expenses saved in cash and 10% to put down, I can't see you having a problem getting a loan. Banks love liquid assets. For a small bank/CU, you want to be sure to transfer your liquid cash into one of their savings accounts. That'll be a little carrot for them to try and work something out.
Reply With Quote
  #13  
Old 11-30-2007, 01:41 PM
'Chair 'Chair is offline
Senior Member
 
Join Date: Jun 2006
Posts: 833
Default Re: Looking for some general advice about buying my first house.

[ QUOTE ]
There are lots of banks now that'll give you a slightly higher interest rate in exchange for no PMI. REcently banks started realizing that for decent credit individuals its better for them to self insure their own mortgages and charging 1/4 point or so more in interest.

Another way to avoid PMI is to have the seller carry a second mortgage for the other 10% of the purchase price. That is better for you anyway since the extra payment is going toward building equity rather than into the pocket on an insurance company.
...

[/ QUOTE ]

we became home-debt-owners and used the "lender paid PMI" that you are referring to because it came out better than regular PMI or a 10% piggy back due to our investment horizon. I cannot recall where the crossover was but it was definitely not within our horizon (7ish years).

edit: went with a 30yr fixed...fwiw

edit2: of course the crossovers on these PMI and 2nd mortgage options are going to change significantly if you plan on making extra payments...which doesn't look to be optimal based on the economic direction.

Also, now seems to be a great time for purchasing/negotiating w/ all the panic. Another plus...a mortgage is a fairly decent hedge against inflation if we head that route. But then again, I've heard of some pretty good arguments either way w/ regards to the inflation/deflation debate.
Reply With Quote
  #14  
Old 11-30-2007, 05:51 PM
prohornblower prohornblower is offline
Senior Member
 
Join Date: Dec 2005
Location: learning the hockey-stop.
Posts: 8,016
Default Re: Looking for some general advice about buying my first house.

[ QUOTE ]
how hard is it to get a mortgage if your occupation is a professional gambler.

[/ QUOTE ]

Try manual underwriting. A "manually underwritten" mortgage. I've heard these are good for salesmen or whomever has a low, or nonexistent base salary.
Reply With Quote
  #15  
Old 11-30-2007, 06:50 PM
DoubleDealDecker DoubleDealDecker is offline
Member
 
Join Date: Jan 2005
Posts: 94
Default Re: Looking for some general advice about buying my first house.

Do not do it!
Reread previous sentence.
We are at the end of a huge housing bubble and things are going to get real ugly. There will be blood in the streets. Interest rates will go down because the Fed has no choice. Auto sales are getting crummy.
This is no disrespect to Detroit. If you can deal with the cold
it can be a great place. However, if you continue to pay $300 a month rent for the next year, you should be able to purchase what most people consider a mansion for the price of what you are thinking about paying for a townhouse today.
Housing will come back, American autos will come back, interest rates will rise, Detroit will come back, but not within the next year.
If you are worried about a bank loan... don't... there will be plenty of desperate owners willing to finance.
Also, if you wait and purchase a tired, but still serviceable mansion a year from now it will be a great place
to put excess, unwanted cash.
Kash is King, keep your powder dry.
Reply With Quote
  #16  
Old 11-30-2007, 06:54 PM
DoubleDealDecker DoubleDealDecker is offline
Member
 
Join Date: Jan 2005
Posts: 94
Default Re: Looking for some general advice about buying my first house.

ps everything I just said goes for real estate for the rest of
the U.S. except for the mansion stuff.
Reply With Quote
  #17  
Old 12-01-2007, 12:07 AM
spex x spex x is offline
Senior Member
 
Join Date: Jun 2005
Location: who dares wins
Posts: 569
Default Re: Looking for some general advice about buying my first house.

[ QUOTE ]
Do not do it!
Reread previous sentence.
We are at the end of a huge housing bubble and things are going to get real ugly. There will be blood in the streets. Interest rates will go down because the Fed has no choice. Auto sales are getting crummy.
This is no disrespect to Detroit. If you can deal with the cold
it can be a great place. However, if you continue to pay $300 a month rent for the next year, you should be able to purchase what most people consider a mansion for the price of what you are thinking about paying for a townhouse today.
Housing will come back, American autos will come back, interest rates will rise, Detroit will come back, but not within the next year.
If you are worried about a bank loan... don't... there will be plenty of desperate owners willing to finance.
Also, if you wait and purchase a tired, but still serviceable mansion a year from now it will be a great place
to put excess, unwanted cash.
Kash is King, keep your powder dry.

[/ QUOTE ]

I'd recommend that you take this advice with a wheel barrow full of salt.
Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump


All times are GMT -4. The time now is 08:37 AM.


Powered by vBulletin® Version 3.8.11
Copyright ©2000 - 2021, vBulletin Solutions Inc.