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Discussion Starter #1
K, yall. I'll be graduating from law & grad school in two weeks (holy crap! it's already been three years and a hundred-brazillion dollars!?). I have a job lined up and need to find myself some living quarters.

I've been looking at rentals and cant find any that look worth anywhere near the asking price (plus, there are maybe only 10 houses in the city for rent). Based on the for sale houses I've seen, I can probably spend way less per month and get a nicer place.

Kink: I have approximately 1 sht ton of debt---enough to buy a decent house, but it's all federal student loans for law school & grad school (no CC debt, car debt, etc). Given that + the fact that I'll be salaried at about $20k/yr over the mean household income and ~$30k above median household income for the town*, what do yall think about me qualifying for a USDA loan? I have no experience or knowledge re: USDA loans (or any other than student loans)


notes: it'll be me and me alone buying (no co-signer). i'll also buy only after living in the city for a year or so, that way I know the areas of town.

*info from factfinder2.census.gov
based on census info, I found that only about 6k of the nearly 15k people are in the labor force...kinda low.
 

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When you say USDA do you mean FHA ?
Usually FHA will loan to someone in your position but there are extra requirements to be met, not to mention the house you chose will have to meet certain criteria.
My advice would be to get in touch with your bank, or a realtor to find out your options.
 

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Discussion Starter #4
When you say USDA do you mean FHA ?
Usually FHA will loan to someone in your position but there are extra requirements to be met, not to mention the house you chose will have to meet certain criteria.
My advice would be to get in touch with your bank, or a realtor to find out your options.
Yeah. I definitely will talk to bank when I get close to buying, I'm just wondering about yall's experiences.


Also:
FHA or USDA - which is better for first time buyers


Fun/OT: I keep finding GORGEOUS old (turn of the last century) homes. I've always wanted to live in a 1900-1920 home, but _definitely_ not for my first house. haha
 

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Discussion Starter #5
Here's the main page for USDA loans. Links on the left of the page for income eligibility and property eligibility.

Welcome
based on all that, which I've looked at before, the entire damn town is eligible property, and I'll be making an amount that puts me at "qualified" for guaranteed, but not direct, funding. I spose all this just means I need to do it if I want to do it. *shrug*


(scary thought of getting a job and buying a house and being an honest to God adult. haha).
 

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based on all that, which I've looked at before, the entire damn town is eligible property, and I'll be making an amount that puts me at "qualified" for guaranteed, but not direct, funding. I spose all this just means I need to do it if I want to do it. *shrug*


(scary thought of getting a job and buying a house and being an honest to God adult. haha).
Yup, sounds like you are good to go! Guaranteed is the loan you want, direct is for low income and provides payment assistance.
 

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Discussion Starter #7
this all seems too good to be true; i'm skeptical. hmm.

we'll see.

all that said, maybe I can convince one of the sellers to rent the house to me for a few months before I decide whether I want to buy. that'd be a nice deal.
 

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Yeah, it makes it seam a lot more real when you actually have to save money to buy a house. You still need a couple grand for closing costs. Also, USDA usually runs out of money around October.

That would be a sweet deal, worth a shot!
 

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Discussion Starter #9
I figure I wont buy till next spring at the earliest; I need to learn the town before I decide where to live in it.

Thanks for the info.
 

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Never used them on the consumer side, but I'm a mortgage insurance analyst, and both usda and fha are a royal pain in the ass from my side of things.



"If loud pipes save lives, imagine what learning to ride that thing could do"

- www.pjsparts.com
 

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Never used them on the consumer side, but I'm a mortgage insurance analyst, and both usda and fha are a royal pain in the ass from my side of things.
why?
 

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I'm 22 and just bought a house by myself (no consigner). And have appox. 25k in car debt and cc debt. Which banks hate more then school loans. I work on commission, another ding against me. When it was all said and done my realtor said how easy the sale was... Just talk to a bank and get pre-approved, then go from there.
 

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Discussion Starter #13
outta curiosity, what interest rate did you get? that's really my big concern. well, that, and finding a decent roommate. it'll be damn-hard finding a decent roommate in a town of 15k people.
 

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outta curiosity, what interest rate did you get? that's really my big concern. well, that, and finding a decent roommate. it'll be damn-hard finding a decent roommate in a town of 15k people.
I'm building a new house with a USDA loan, my rate isn't locked yet but my good faith estimate was 3.5%. Income eligibility for USDA takes into account all people in the household. Make sure and don't "plan" to have a roommate when/if you're getting a loan.

Here is a good USDA loan calculator.

USDA Mortgage Loan and Closing Cost Calculator
 

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Since I am in mortgage insurance, I never see a loan until after it defaults and has already been foreclosed on or is about to be. But with USDA an FHA and VA, it seems as though there are always too many hands in the cookie jar and none of them talk to each other

"If loud pipes save lives, imagine what learning to ride that thing could do"

- www.pjsparts.com
 

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Discussion Starter #17
Are there not any nearby towns you could also live in? Might not want to limit yourself.
that is the nearby town...hahahahaha! (all the other nearby towns are even smaller blips on a map). A town of 100k people is nearby (60miles), but no way in hell am I gonna spend $900/mo in fuel just to get to work and back.

I'm building a new house with a USDA loan, my rate isn't locked yet but my good faith estimate was 3.5%. Income eligibility for USDA takes into account all people in the household. Make sure and don't "plan" to have a roommate when/if you're getting a loan.

Here is a good USDA loan calculator.

USDA Mortgage Loan and Closing Cost Calculator
yeah. when I do everything, it'll be me and only me for a while (me +2 dogs). I figure I'll get a roomie if I need one. I'd prefer to live alone (err...with a great woman, but that isn't in the cards, currently), but who knows





Generally speaking, I'm kinda having a hard time fathoming how people graduate w/epic debt, yet still manage to buy a home and pay off those loans. As I think about it more, I might try to pay less on my student loans now (not ideal), and bump the payment once I start making more. Further, and less understood, is how _FAMILIES_ can manage to live on $30k/yr. I don't take trips, I cook the vast majority of my meals from scratch, I dont live on credit (aside from loans, currently), I don't go to entertainment events, yet $55k/yr will be tight, I think. I spose, though, I take my gf out to nice ($80 date) places 1-2 times a month, I seem to do most the buying/cooking at the house, and I every so often buy a suit or something kinda fancy (suits & nice/proper items are sort of the required dress).

I guess I just need to show my importance, then bring in a ton a cash-filled clients, and double my take home $ ASAP.




Curious thought: I found some places for $150k that have back houses. I wonder whether it might be worth i to buy the property and rent out the backhouse/inlaw suite for 50% of the mortgage.
 

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rent for a year, so you know if the job and the town are what you want to make a long term commitment with.


when I was a first time buyer, I skipped out on the FHA. it wasn't the best deal.
 

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Discussion Starter #19
I dont have any concerns about the job. I am kinda wary about the town, so...yeah...
 

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Another reason I'm glad to be a Veteran. I just bought a house using the VA, close on May 24th. I paid nothing down and besides the 1k in earnest money, 250$ for the inspection and 400$ for the closing costs I'm way ahead of everyone else I know that's a home owner. I'm locked in at 2.25% for 30 years. Good luck with the house hunting, it can be a daunting task, I saw a lot of absolute toilets that looked great from the pictures but in person, wow.



Sent from my fingertips...
 
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