All Posts Tagged With: "cash"
Should The FHA Insure Luxury Condo Loans?
Last week Senator Charles Schumer (D-NY) announced an effort to increase the size of FHA builder loan guarantees for new housing units in major cities. Now Bloomberg News is reporting that FHA loans are being used to finance the acquisition of luxury apartments in New York.
“The Federal Housing Administration agreed in March to insure mortgages [...]
What’s A Foreclosure Purchase Mortgage?
In the world of real estate and foreclosures there’s a financial creature called a “purchase money mortgage.” This is the financing used to acquire a home rather than money to refinance the property or add improvements.
At first it might seem that a purchase money mortgage was the same as any other financing but that’s not [...]
How To Read The HUD-1
Starting January 1st, 2010, all real estate transactions will be settled using a new HUD-1. The HUD-1 is a standardized form which allows real estate buyers and sellers to clearly understand the costs of their transaction.
The original HUD-1 was developed as a by-product of the Real Estate Settlement and Procedures Act of 1974 — or, [...]
If I pay cash for everything can I have good credit?
Question: I’ve recently graduated from college, pay cash for everything, have no credit cards and live at home. How do I establish credit since I ultimately want to buy a house?
Answer: In the usual case mortgage lenders might measure your credit standing by looking at utility bills, car payments, savings and rental information. However, your [...]
Does It Make Sense To Buy Real Estate For Cash?
Probably the best answer works like this: Is there a better place to put your money? Is there an alternative investment that will produce like returns with equal risk? Is it simply more comfortable as a matter of personal preference to pay cash?
The decision to pay cash or not pay cash includes both economic considerations [...]
What’s A Cash-Back Transaction?
It is sometimes claimed that it’s possible to buy a home and receive both the house a substantial amount of cash at closing.
For example, a home will be “sold” for $100,000. The deal will be financing with a 95 percent loan-to-value mortgage. However, the seller will provide a $15,000 certificate of deposit to the [...]
Can I Buy A House With Mattress Money?
Mattress money — cash not deposited in banks and other repositories — has long bothered lenders. They wonder where the money comes from, and if it was obtained illegally.
Traditionally, lenders have refused to accept mattress money from home buyers. However, Freddie Mac has said that in some cases it would allow buyers to use cash [...]
What’s Real Estate “Equity?”
In general terms, equity is the difference between the fair market value of your property and all debt it secures. A more conservative view defines equity as the fair market value of your property less debt and marketing costs.
Example: If you have a home worth $600,000 and a $225,000 mortgage, the equity is $375,000.
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Is Too Much Cash A Real Estate Problem?
It’s difficult to imagine that mounds of cash might be a problem, but in some circles a surplus of coins is raising a concern: What to do with real estate dollars now that the housing market in some areas is slowing.
In a rising market the strategy is easy: Use leverage and get as much [...]
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