Trying to buy a 1st house while still in school
 

Their is a house in my parents neighborhood that has been vacent four about two years. A freind of mine who ended up buying another house checked on the house two years ago. It was an older lady who inhearted it from her father. She said that it had been in the family a long time and that it needed lots of work. I took a look and it is something that I could fix with my labor and my dad's advice. I drove by the house yesterday, and the grass what nearly up to my shoulder, and their was a sign from the city stating that they needed to mow their lawn or else they would be fined.

This freind incoured me to contact the owner and see if she would be willing to let the house go at this point. I'm thinking that the sooner I get into a house the better off I will be. Would I want to consider a land sales contract for this property? This is a house that would have a house payment that would be cheaper then rent. Any advice for a first time home buyer? Thanks Nick.

Ok first carefull with a land contract. You may get good terms but often the terms can be really really really bad. If my memory serves me in some areas they are illegal. Consult an attorny that is familer with this area before signing anything. Get an attorny, you need an attorny. Another downside with a land contract is you only will have equitable title to the property. Ie its only slightly better then renting.

If you are over the age of 18 you can buy a house. Why not check out the terms for a traditional mortgage? Like a 30 year fixed?

Talk to your parants and sit down with a mortgage broker, maybe they can help you in one way or another. Ie with money or maybe as co signers. Are your parants in a position to buy it and you can deal with the loan through them?

Another option would be owner financing, which can be similer to a land contract, depending on terms.

Getting money for residential homes is pretty easy. A pretty darn close to 100% no income loan is possible.

If you don't mind how much is the house in queston? Are you in a position to put anything down? If you can put 10%-20% down you may get slightly better terms, but this is where a mortgage broker can help you.

I'm not sure about the price of the house, I'm thinking I might be able to get it it for around the $40,000-$50,000 range. I found that someone has bronken into it at one point and thier is a buch of wine bottles in inside. (I did not enter the house, I just looked through the windows) With this, I'm a little worried about what else I might find. This seems like it might be a good entry into the otherwise expensive houseing market, but I wan't to make sure that I'm not buying some house liability.

Get as much information as you can before you contact the owner. Find out of the property taxes are currently paid up and if there are and code violation fines pending on the property. It's all public record, and a very good form of leverage when making an offer. Above all else, if you do buy the house, hire a real estate attorney. Keep us posted, there are many people on the forum with real estate experience that will be willing to help you. Good luck.

You will need:

Title search
Appraisal
Termite inspection

Buy it with cash advances on credit cards or with a loan from your family. Refinance immediately with an HEL - fixed interest, no fees. Use the HEL (not HELOC) to pay off your bridge financing. Skip the real estate agent and go straight to title agency. Do your homework first. This is the broad idea, the devil is in the details. Do your homework.

In addition to the termite inspection, get a property inspetion from a qualified inspector. It might cost you $3-500 depending on the size of the house and rates in your area, but you'll know exactly what you're getting into. Make sure your inspector has liability insurance so if they miss something that costs you money down the road you can be compensated.

Also, given where you live (I'm assuming western OR if not Eugene), I would be wary of buying in the summer because this sounds like a house that would be filled with mold. You might want to inspect it before it gets dry, i.e. ASAP if you are seriously considering it.

Buying a moldy house would be a disaster.

Yes, I agree about the mold problem. The mold can be a real liability due to removal and disposal issues.

Amen!
 

Get the PPI just as if you were buying an MB! At least they can tell you whether the major mechanical systems work. There's a good chance they don't in a house that has been vacant for several years. Just like with a car, the purchase price can end up being one of the least expensive parts of home ownership.

Sounds like it needs a lot of work. What are similer houses in the area going for?

Go to town hall and pull the property data, its all public records.

You need to look at the entire picture first before making a move. Also you may want to consult with a real estate agent in your area, they will help you get all your ducks in a row. The small service fee an agent will charge is money well spent compared to making a mistake.

For $50k if you have good credit, I don't see why you couldn't get a mortgage from a regular lender. Don't try to get creative with the financing on your first deal, especialy in this case I really don't see a reason to.

Before you say that Hat, make sure you ask some questions like; How is your credit? How much do you have in reserve? Do you have landlord experience? and much much more.

and what happens when somehting goes wrong and you make late/no payments to your credit card? They can call in the whole amount. A loan shark might give you better terms than credit card companies.

The devil is in paying very high interest rates from the minute you get a cash advance on a credit card. There is no grace period. A hel usually has closing costs and fees like a regular mortgage and higher interest rates.

If the house has serious problems, mold, termites, etc. you won't be able to get a conventional mortgage. Owner financing, land contract and a lot of your sweat will be in the works. I did this when I was younger, and it's a great way to build smarts and assets. Buying a crappy house in a good neighborhood is key.