I have a few questions regarding the First Time Homebuyer Credit, if anyone, Dogfish?, could provide some feedback, it would be much appreciated (and if things work out...would land you some access to crunktastic steelhead fishing)

Situation:
-I have never owned my own home.
-I have to live in employee provided housing at my place of work.
-My neighbor wants to sell me and my soon to be fiance, his property; 7+ acres, with 1996 manu. home, original 70+yr old home, multiple outbuildings, and approx. 1,500 ft. of river frontage (both sides of the river).
-I can't due to work situation/requirements, live at the site, though it is only .2 miles from my current residence.

Would/could I still qualify? Could the home be rented out, if for say, half of mortgage rate.

Am looking at putting 20% down, with a 15 yr. mortgage.

Thanks much, PM if you'd rather...
Eric

http://www.federalhousingtaxcredit.com/faq1.php


Everything you could want to know regarding the credit Twitch...Cheers

Thanks summerrun,
I think thats the one I was looking at that made me optimistic, but looking at the IRS website, I think it says something about one of the conditions is that it is your primary residence. That's where the confusion came from...

Almost positive that it has to be primary residence Twitch. Traditional financing will be very hard to get on non-owner, manufactured home on acreage, mult houses on property etc...will owner carry a contract? Some of your smaller community type banks that portfolio their loans would be more receptive to this I would assume but assumptions are never the way to go regarding financing;)

See #11 on previous link, pretty clear it must be primary residence.

There is still some level of benefit under the First Time credit. I believe it isn't the full amt., but still a good benefit IIRC.

Best bet is to check with a local mortgage lender, as they would know
all the more intimate details of the requirements.

ISO

That's kinda what I was affraid of.

The manu. is basically a placeholder for a larger stick home down the road. The original home and all outbuildings, would be torn down in the near future (if I were to buy the property).

Owner doesn't really want to carry the contract...but didn't sound like it was totally out of the question.

Figured it would be a tough sell to the bank based off current status of the place...

Research the land value and offer based on that? That would require a larger down but smaller purchase price so might work, especially if you are intending to tear down outbuildings and remove manuf home. Could be appraisal issues as well but hard to say from 300 miles away.

I haven't wrote a mortgage loan in over three years so things could have changed but IMO your best bet is to convince the owner to carry a contract.

Seeing as the property has multiple out buildings, a manufactured home, and another 70+ year old home on it, you are going to run into problems obtaining financing. Add to the fact that this will not be a primary residence and I would assume that even most community banks would require you to put 30-40% equity into the deal (Dogfish?), if they would do it at all. In addition it has river frontage, which is a potential flood hazard. Another ding against the deal.

I don't want to discourage you though. Any potential buyer, be it owner occupied or not, is going to have a tough time financing this property. Think about what that does for second. That narrows the pool of available buyers, which in turn affects the overall value of the property itself. Chances are that the owner of the property is already fully aware of this fact. This gives you negotiating power. If the owner really wants to sell the property he would be best served by selling the property with owner carried financing. You should be able to refinance out of that contract after occupying the property (and possibly improving it by removing the MH) for two years and at that time pay the owner in full for the price of the original contract.

There are plenty of people out there (and here) who could help you and the owner come up with a mutually benficial owner carry contract.

Best of luck to you.

Check with a local community bank on financing. Which county are you in? I may have a banker to refer you to.

Thanks all for the replies.

Stinkingwaters, flood threats are non-issue. Home, and majority of property sit up 75 +/- feet above the river, on a bluff of sorts(well away from the edge, non slide hazard as well. River here only gets to around 6' at its highest winter flows)... hard to describe. May try to get some pics up if I get a chance.

Property owner has acknowledged the detractors of value associated with said misc. structures.

Dogfish, thanks, it is in Benton Co., Oregon.

By my ROUGH calculations, in a perfect world, financed as I mentioned above, using 6.35% for 15 years, I'm looking at a little over 100K in interest, on top of the asking price of $249K. Essentially, making the property as it sits at the moment, around $360K(obviously ommiting all fees, etc.). Assume I remove all structures, and build a modest 2600sq. ft. home at roughly another 100K, I'd be into it around $460K. Then the question becomes, when would the property be worth enough over that to be worth all this hassle, and what is the feasibilty of finding a buyer for this location...

KK, I'm thinking log home, wrap around porch, some kind of sweet fireplace to hang dead critters over... overlooking the river of course...(ok, so maybe not that cool, but I'd rather overestimate than undershoot it)


Now accepting donations... (oh, and I hooked 6 fish in 6 casts on my fly rod down there while I was scoping the place out!)

There are only a few lenders doing loans on manufactured homes, and FHA and VA will do them as they consider manufactured homes as low income housing. That being said, it would be a very difficult property to finance in good lending conditions and since you are considering going the non-owner
occupied route, that makes it virtually impossible. Course the more cash you
bring to the table, the easier it gets.

As mentioned a couple times, an owner contract would be the easiest way to proceed and my guess is that the owner knows this already as at some time he has probably financed it.

As for your $ per square foot calculation on the new house, that seems quite low to me too. Probably $75 per foot is more in line. I'm assuming you want plumbing, electrical including lights, switches and bulbs, and heat.

BTW, log homes aren't much easier to finance then manufactured homes either. M & T Bank is the largest financier of log homes in the country, if you choose that route. Good luck.

Have your fiance buy it.

Recipe for a train wreck.

+1,000

She'll end up with it and the money either way.

DBAppraiser nailed it.

Personally, if looking into buying any property with a Mobile Home on it, no matter what the condition, I'd want the cost of hauling the sucker away to be deducted from the appraised land value.

But that's just me. I'm kind of a dick like that.

Better double check the flood plain maps just to make sure its not in the flood zone. Just because it will never flood doesn't mean they won't try and make you have flood insurance. They backed off of it on my property after refusing to comply.