I was wondering if i can buy a home at around 55K if i am currently unemployed but i have the capital to down at least 20%. Other than that, i have excellent credit, over 700. Anyone out there who is willing to steer me in the right direction, please do help.

They just passed a Federal law that for residential lending you can no longer fund stated income loans.

What you need is someone who owns the house outright who can finance the note for you with making a downpayment.Then refinance and pay them off in a few years after you have a job again.You could just make extra payments and pay off the note when due in a few years.

Thank you for your insightful response. With what you've just described, will that method be feasible in a short-sale situation? And excuse my ignorance, but are you suggesting that the best way is to have someone else (not the seller) buy the house using my money to down the house then i pay what the seller is already paying on its mortgage? Again, excuse my ignorance as i am befuddled by what you are suggesting.

Just as Super said ..your best bet is to find someone that is selling a home that they own outright with no mortgage. They can then be the bank for your purchase.

A short sale situation will not work in your case due to the seller having a mortgage on the property. And since it is a short sale, the seller owes more than the property is worth.A short sale would be a waste of your time.

With about 20% down you can should be able to find a seller that is willing to do owner finance.I have in the past found properties that did not qualify for FHA/VA financing, motivated sellers of these types of properties would be a good target for you. These properties will most likely need a little work so do your homework on repairs needed and purchase price so that after repairs you are not upsidedown.

Good Luck!

The other options you have available to you are either using a hard-money lender, or what I would favor is structuring a lease-option.

Lease-options give you a huge potential upside if property values increase, but limit your risk if they don't.

If you do not have the money to pay for it, I would suggest that you really think twice about making that purchase. Always consider the worst case scenarios and how you can adjust for them. If you do not find a job in the next year or two then you might miss enough payments to lose the house and your down-payment along with it. Could you just rent until you get another job?

Yeah, I agree with Kristi always consider the worst scenario, what if you wasn't able to get a job and you have to pay the existing balance for your home. Buying home with out enough money is hard unless you are qualify for a home loan that would be helpful.

I am so tire of hearing about this. Yes, all of us already know if you have bad credit - you are screwed.live with in your means,life will be simpler and you will be much happier!bayut.com

I would not spend alot of time looking for an owner to finance you though. Super and Oli gave some good advice, but ask yourself--if you owned a home outright would you owner finance to someone with no job, whether or not they put down 20%? How are the monthly payments going to be made?

In my opinion if you really want a house that you call your own, concentrate on getting 12 months uninterupted work history under your belt. Then with your exceptional credit large downpayment you will be able to buy from a much larger pool of homes--and you will be more likely to be able to make the payments. I know getting a job is tough in this market, but if you can do it, you are 12 months away form being a high quality buyer in my opinion.

The owner finance and what people will be willing to do will vary by state.If the owners that are selling are not looking at that they are very ignorant.

When doing owner finance you have to know your state's foreclosure laws and time lines.This is crucial as unlike with a renter it could take much longer to get them out.The buyers could also file BK locking up the property for awhile.

When you look at buying notes from banks at a discount you always look at if I had to take the property back what will the cost and time be to get there?

This falls into another category as well in that if you were lining up a private investor to give you the cash to buy the property and they hold the note. In these situations the investor will only fund properties you buy dirt cheap especially in a sliding market. This way if you don't perform they can foreclose and dump the property quick and recoup their money.

If the investor loaned close to value then after non-payments,penalties,foreclosure costs,and a dipping market they would take a loss.

I think you are better renting for now or the lease option or a lease purchase.Not having a job is too risky but maybe you find someone willing to do it.

You are unemployed but do you have a legal source of income? If you have a pension or a trust fund that pays you a regular source of income you may be able to get financing...

that's very frustrated matter. If you are unemployed its not possible bank or other person give you any loan so if you wantto need just some urgent loan then find a job.

Its amazing that someone who is unemployed, no income at all, can buy a house. Or should even be thinking about buying one.This is really foolish and forgive my bluntness. Seems we are an instant gratification society. When we want something, we want it now. I have known people who made a nearly daily search for a job ad are still unemployed a year later. It does happen.

That was my thought-- You haven't given us all the information. As you can see, many assume you have no income because you have no "job". However, you have 20% to put down and a 700 credit score so you must be paying your bills and have $$ to spare. "Income" and "job" are 2 different things. Legal income can be verified.

Open your mind. Do not just think like that If you have some property and you want to sale it then get it listed it by The Company not agent.The Agent works for a Company,and company pays commission to the agent for selling.


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