posted on Jan, 28 2012 @ 01:20 AM
Originally posted by Destinyone
Use a Credit Union to get your loan instead of a bank. Credit Unions are owned by the members. Check around to find out the best ones in your area.
Before I answer the OP I'll point this out: Credit Unions are not by default better than banks. Whether you use a Broker, a Bank or a Credit Union
the loans are ALL .. I repeat ALL FHA loans are secured by the Federal Government through Freddie Mac. All of them.
Credit Unions also sell their mortgages just like banks and brokers do .. because Freddie owns the liability the mortgage is a commodity to be traded
.. a credit union gains nothing by sitting on a 97% LTV FHA loan .. they WILL sell it.
To the OP:
When you buy a house you cannot sell the house for 3 years unless you're willing to pay a 30+% Federal Tax on personal income gains by selling the
property. If you reside as a main residence for 3 years there is no tax penalty.. that being said, when looking at a house value you have to place
the time you'd expect to sell to a minimum of 3 years .. likely the housing market will begin ticking up by then, but who knows?
Real Estate investments are long term holdings (like Gold) and if you're planning on having a family, my advice would be to find a nice home in a nice
area, buy it and live in it for as long as you can. Also if you have the money for the love of God get a 15year note .. NOT a 30 year note. You
usually pay a few hundred more a month but save hundreds of thousands in interest charges.
Consider this: 90% of American wealth is held in the in their homes equity. If you only rent you don't generate equity so unless you have personal
savings you're worth nothing.
And don't worry about the Dollar "collapse" .. that's an impossibility. Even with a currency transition valuations are only altered not erased .. and
if you know anything about the rules of monetization you'll know that a currency "collapse" within our system is impossible outside of a "controlled
demolition" if you will. And in any case it won't be in our life time.
PS: Don't listen to the "I'm a tenant because I pay taxes" bs .. rent = no equity. Own = equity. Vast majority of your wealth years down the road
will be equity. Thus this is why people who rent are worth far less than people who own. It all comes down to your personal market which you need to
research .. is the market near a bottom mark or is there more to fall? The lower you get in the more you'll be worth a few years from now. USA
average since the 1950's has been home prices double about ever 12 years (or a 100% gain in equity), 2008 being the first time in a long long time
there was a continuous decline .. believe me I know I have about -30k in equity (under water) but that won't last forever.
edit on 1/28/2012 by
Rockpuck because: (no reason given)
edit on 1/28/2012 by Rockpuck because: (no reason given)