Q&A: Buying Townhouse vs Renting an Apartment?

Posted on May 18, 2024 in FHA Information

Question by JohnPau2010: Does lenders every give home loans with ZERO closing costs ?
1) Are there any banks which can give home loans without charging us any fees, order abortion etc ?

2)They are already making 3 times our loan price at the end of the 30 years, treatment why do they still take the other fees ? (originating, about it closing….etc)
Then they should give us an option if you stay with the same bank for “x” years we will refund the closing costs

Best answer:

Answer by Ryan M
1) Nope
2) Because if you refi with someone else OR if you pay off the loan early, then they don’t make all that money.

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Question by Renaisannce Man: What are some ways to get closing cost assistance when purchasing a home? I can accept up to 6% from seller.?
I have been approved for an FHA loan. I can come up with the 3% that I have to put down. I have found the ideal home and I have been thinking about making an offer. It is very affordable for me as far as making the monthly mortgage payments but I don’t have the estimated 5K it’s going to cost to settle at this time. I know I can accept gift money…anyone have any other suggestions that could make this work? I do have a real estate agent.

Best answer:

Answer by mister_galager
Make the offer and in the offer ask that the seller pay all closing costs.

It’s a buyers market, information pills and if the home has been on the market for a while, the seller may accept it.

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Question by Lady War: What is the best way to start the home buying process for first time buyers with little or no credit?
I live in GA and I am looking for a home in Douglasville. How do I start the loan approval process?

Best answer:

Answer by Christopher B
Contact a reputable mortgage brokerage. They can run your credit once, viagra and then bounce it off a number of different lenders to see what you would qualify for.

If you have no credit – then you need to get a secured credit card. Spend no more then 20% of the credit amount each month, prescription and then pay it off at the end of the month. Apply for a couple if you can get them – but keep them at no more than 20% of your credit limit, and pay them off at the end of the month.

Know better? Leave your own answer in the comments!
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Question by JoelL: Buying Townhouse vs Renting an Apartment?
I need some advice on real estate and I wanted to know peoples opinion and if this makes sense.

I currently rent in northern west NJ, there 20 minutes from PA, order and my monthly rent is $ 1170 which includes all utilities, buy off street parking, summer pool, and any maintenance issues within the unit.

I currently cannot move further west into NJ nor to PA because of work and family constraints. I have very good credit and I already qualify for a USDA Loan and an FHA loan at 3.25% for 30 yrs. I am planning on staying in my area for another 3 years top before I move back east towards Jersey city, NJ where I grew up.

My lease is up and my question is should I invest in a townhouse around my area knowing I will only be living in it for at most 3 years before I start to move on east towards where my family lives and real estate is more expensive? I just started my career and as time goes by I should be able to earn a little more. I do not plan to make any profit off the townhouse I purchase now. My main focus is not to make a profit, but to buy now low and probably sell at the same price down the road and dump the property back into the market when I’m done and ready to move on. So in other words I’m not looking to make profit, but to break-even with my living expenses.

Will mortgage, utilities, and ownership responsibility be more than just renting and not worth it? I would probably purchase a townhouse at $ 110,000 for a monthly of $ 945 plus $ 250 association fee and then utilities and other unknown (to me) owner’s responsibilities expenses. Thanks!

Best answer:

Answer by Kate
well think of it this way:
right now you pay $ 14, 040 to live in your rented property. let’s say you buy a town house valued at $ 200,000 you put 10% down (20,000) which makes your monthly payment aprox. $ 780 or $ 9360 for the year. when you’re paying sewer and hydro, average bill is probably going to be $ 300 every other month or $ 1800 a year, and then property tax, let’s say $ 2400 (based on 1.2% tax rate) then you’re looking at $ 15,960 a year. the only difference will be that you will get your money back if you sell after wards. If it were me and I had the down payment, I’d buy the town house.

What do you think? Answer below!

One Comment

  1. buying for 3yrs is a waste off your money – simple.

    buy ONLY if u can stay 5 plus yrs.

    u have forgotten Multitude of taxes, utilities are higher than u think,
    empty house syndrome, higher insurance rates.
    ooh lay offs , closures, sell offs make buying short term lousy.
    months on the market , low sales price.

    be smart rent and save cash for later.