Yes. You read right. Wasn't.
We did not get the house. And we will not be purchasing a home for another year. Instead, we will be moving out of our current apartment, and moving into another apartment (one that is better all around- if you are moving to DE, I do not, in any way, recommend Cavalier Country Club Apartments, for a host of reasons!).
What happened? Simple enough, HUD and FHA changed the rules on July 15th. They did it with no notice, and because of the changes, Brian doesn't qualify for FHA anymore. Simply put, he's a 1099 tax form employee, and you have to have been a W2 tax form employee for at least a year.
It's heartwrenching. It's maddening. We had gone through with closing and the inspection, and the mortgage broker waited almost 2 weeks to tell us- something that really got under our skin. Needless to say, we won't be using him in the future. He cost us a ton of money that we wouldn't have had to put out if he had informed us as soon as he knew and understood the rule change. Our wonderful realtor, Lauren, contacted another broker on our behalf, and that one tried and tried to get us through. But when FHA says no, it's a no. The Kicker, with a capital K? The house we were going to end up in was the second house that we looked at in the whole process, back in May. If we had done it then, we would have sneaked in right before the rule change.
Am I mad? Absolutely. I wonder how the government (HUD) and FHA can expect the housing market to be on the upclimb if they keep pulling the funding needed? What's the use in offering the tax credit? I have heard in the rumor mill several things: one, that HUD and the government will most likely be offering another tax credit next year, and most likely in a larger amount. I have also heard through the grapevine that because FHA/HUD put these regulation and rule changes into effect, it will more than likely put us into another 2 or 3 housing slumps; if you thought this was bad, nope. It will get worse from here.
So maybe this is a good thing. Maybe this is God's way of saying, good things come to those who wait. Not that patience was ever one of my virtues. But who knows. Maybe we will end up in a little larger house, that needs a little less work, for the same price or less that we were going to offer. Maybe we will be able to afford a little more, since hopefully by that point I will have had surgery and be able to work, providing more income. I am trying, really I am, to keep a bright outlook. It's not easy, but I am trying.
So we started the look for another apartment. We sure as heck aren't staying here. We found a couple more places that are nicer. They cost more, but what are you going to do? I guess that's the tradeoff. The biggest disappointment for me, besides the not being allowed to choose wall colors and decorate and all, is that Brian had promised me we would get a dog once we moved- a Yorkie, because I want one so desperately. Unfortunately, the complex we will probably move to does not allow dogs. So once more, I am left to wait. Brian said at the latest, it will be my wedding gift.
Please try to understand, that while I am trying to look on the bright side, it's hard. Really hard. Besides the disappointment in a dog, there's so much more. I was looking forward to creating a home with Brian- somewhere we would start a family together. And now, instead of investing the money of mortgage payments back into our future, we are throwing it away in rent, and it's a lot of money that we are throwing away. That makes it very bitter to swallow. VERY bitter.
I know God has a plan, and I have to trust Him. I realize this is a test, and that He will NEVER give me more than I can handle. But just once, it would be nice to be given a break and "win" every so often.
Showing posts with label FHA. Show all posts
Showing posts with label FHA. Show all posts
Tuesday, August 11, 2009
Monday, July 27, 2009
So Many Blessings!
SOOO much has happened since the last time I posted! I have been away, in NOLA with our church's youth (more about that in the next post), so I haven't had time to post until now, but boy, do I have exciting news for everyone!
WE FOUND OUR HOUSE! It's a 3 br/1 ba in Elsmere (the safe part), an end unit townhome. It needs some work, but out of all the ones we have seen, this one is by far the best in move in ready condition. The 3rd bedroom is basically a large closet, but it would work for a nursery for our first child :) It has a nice size yard, a basement, kitchen, dining room, and living room. It has a covered back deck on the back.
More than likely, with our tax credit money, we will redo the kitchen and bathroom. The kitchen is just too small for me to cook in (I can't wait!), so we will probably get rid of the wall dividing the kitchen and dining room, and instead do a country eat-in kitchen. This way, it will open it up, and it will provide for more counter and cabinet space. The bathroom right now is completely purple. Tub, toilet, sink, and tile- all shades of lavender. Brian and I aren't too fond of the colors, so we decided we will probably take some space from the bedroom next to it. That way, we can add some space to the bathroom and closet space to the bedroom- it will make it a tad smaller, but it's an okay size now, so it should be fine. Add a pocket door for the bathroom, and boom- all better!
We will repaint (obviously!), and we will be ripping up the carpet and refinishing the walnut hardwood floors that are throughout the house (sqee! I can't wait for hardwood floors!), and we will be installing new appliances throughout, since the ones there are original and look antique!
Brian and I are blessed in the fact that Brian has many, many hands on skills that will save us much money in the long run- his carpentry skills, along with all his other construction knowledge, will come in very handy! This way, we can start building equity in the house, but we don't have to put out much moola to do it- just a little (okay, a LOT) of elbow grease. We don't plan on staying here forever, but as a starter home, it's a great little house. It honestly made since to do this- our monthly payments will be around the same, if not less, as rent for the apartment. This way, we aren't throwing it down the drain.
We had the house inspection today- there are some things that need to be fixed, the big ones being the brick facade and the roof. Brian has the ability to do everything except the roof, and quite frankly, it's so much money that we just can't afford that expense right now. When we closed on the house, we told the current owners (it's an estate sale) that we would not nickel and dime them for every little wrong. The roof, though, is too major of an issue, and considering that there is a little bit of water damage inside/upstairs in the bedrooms (nothing active, and nothing that is concerning right now), it needs to be taken care of, and fast.
I have not heard about surgery...yet. We were told by the end of July, which being there's only a few more days left, hopefully we will hear something positive soon!
WE FOUND OUR HOUSE! It's a 3 br/1 ba in Elsmere (the safe part), an end unit townhome. It needs some work, but out of all the ones we have seen, this one is by far the best in move in ready condition. The 3rd bedroom is basically a large closet, but it would work for a nursery for our first child :) It has a nice size yard, a basement, kitchen, dining room, and living room. It has a covered back deck on the back.
More than likely, with our tax credit money, we will redo the kitchen and bathroom. The kitchen is just too small for me to cook in (I can't wait!), so we will probably get rid of the wall dividing the kitchen and dining room, and instead do a country eat-in kitchen. This way, it will open it up, and it will provide for more counter and cabinet space. The bathroom right now is completely purple. Tub, toilet, sink, and tile- all shades of lavender. Brian and I aren't too fond of the colors, so we decided we will probably take some space from the bedroom next to it. That way, we can add some space to the bathroom and closet space to the bedroom- it will make it a tad smaller, but it's an okay size now, so it should be fine. Add a pocket door for the bathroom, and boom- all better!
We will repaint (obviously!), and we will be ripping up the carpet and refinishing the walnut hardwood floors that are throughout the house (sqee! I can't wait for hardwood floors!), and we will be installing new appliances throughout, since the ones there are original and look antique!
Brian and I are blessed in the fact that Brian has many, many hands on skills that will save us much money in the long run- his carpentry skills, along with all his other construction knowledge, will come in very handy! This way, we can start building equity in the house, but we don't have to put out much moola to do it- just a little (okay, a LOT) of elbow grease. We don't plan on staying here forever, but as a starter home, it's a great little house. It honestly made since to do this- our monthly payments will be around the same, if not less, as rent for the apartment. This way, we aren't throwing it down the drain.
We had the house inspection today- there are some things that need to be fixed, the big ones being the brick facade and the roof. Brian has the ability to do everything except the roof, and quite frankly, it's so much money that we just can't afford that expense right now. When we closed on the house, we told the current owners (it's an estate sale) that we would not nickel and dime them for every little wrong. The roof, though, is too major of an issue, and considering that there is a little bit of water damage inside/upstairs in the bedrooms (nothing active, and nothing that is concerning right now), it needs to be taken care of, and fast.
I have not heard about surgery...yet. We were told by the end of July, which being there's only a few more days left, hopefully we will hear something positive soon!
Tuesday, July 14, 2009
another :(
We lost the other house, 2 Winston Place. I am trying not to get down on myself, and trying to stay optimistic about it all. The realization that we are so young and already trying to buy our first home, when most of my friends or acquaintances our age are either renting or living at home. Not saying those are bad, but when the national age for first time home buyers is 32, we are doing pretty well.
I just have to keep my head in the game, and realize this is the housing market- and not invest my heart so much in each house that fits our needs. I know the right one will come along, and when it does, it will be the one that Brian and I make into a home together. It will be the one where we have our own Christmas Tree and BBQs, where we have family over and start a family. And when I think about those special moments that are to come, waiting a little longer doesn't seem so bad.
I just have to keep my head in the game, and realize this is the housing market- and not invest my heart so much in each house that fits our needs. I know the right one will come along, and when it does, it will be the one that Brian and I make into a home together. It will be the one where we have our own Christmas Tree and BBQs, where we have family over and start a family. And when I think about those special moments that are to come, waiting a little longer doesn't seem so bad.
Thursday, July 2, 2009
Among other things...
If you don't know by now, Brian and I are in the process of trying to buy a house. Right now, we are renting an apartment, and after some distinctly unpleasant happenings, we looked at each other and said the same thing- this is ridiculous. With what we are paying for rent, we could be in a small house of our own, building equity and making a home. One of the biggest peeves that Brian has struggled with this entire time in the apartment is since he is not the owner, he cannot fix or update anything here. With him being very hands on, and very handy to boot, not being able to paint and spruce up, fix and make more efficient has driven him nuts. If we are in a house of our own, not only can we put the money into making that home better, it will help build equity along the way as well. Right now, we are throwing it all away. So, about 2 months ago, we started looking at houses.
First off, let me explain something. If you haven't read below, please do, and take note of my medical situation. For us, the decision was made for me to live with Brian instead of my mom because of my medical situation. It's certainly not ideal, but Brian is better equipped to take off work if needed for a medical procedure, or if something goes wrong and I am bed bound. My mom is a home infusion nurse, and while she is obviously devoted to her family, that devotion includes working a job that takes many hours, with not much leeway. Me living with Brian, who is better able to care for me all around, works best in this pitifully crappy situation. Like I said, not ideal, and not what I wanted to be doing ("living in sin", as some would say), but right now, my health has to take precedent.
So we begin the search for the house that we would make a home. First off, let me say that our realtor is AWESOME. Yes, all caps AWESOME. Lauren Hill, of Remax of Wilmington. I cannot recommend her enough. When Brian and I had that initial conversation, it was put upon my shoulders to contact Patrick, our pastor, and see what, if anything, he could recommend. He told us that Lauren, who is a member at our church, is a realtor and that she helped him get into 2 houses, sell the first one, and helped his mom sell her house and move as well. Since we know her through the church, I felt comfortable pairing up with her. And it has not been a mistake. She really has steered us in the right direction, flat out telling us where she wouldn't take us or sell us because the neighborhood or surrounding area was bad. She has given us her honest opinion, telling us we didn't want this house or that one because the construction was known to be shoddy, even if the area was okay. She even went so far as to take us to a not so good section of town to show us what we were "missing" (we didn't even get out of the car, it was that scary!). When we have found something we like, she insists that Mark (Brian's dad) and either my mom or dad come and approve the house- make sure there are no unforeseen issues that might get us in trouble down the road. Lauren Hill, of Remax of Wilmington. Remember that name, because I will always recommend her to anyone that asks. She's amazing, simply wonderful.
Okay, enough about the realtor (we love you, Lauren!). Unfortunately, being young 20-somethings, we don't have much saved or make enough for a huge house. We were pre approved for low amount, but we are determined to make it work. Mark taught Brian and his brother, Alan, carpentry and wood working as a skill very early on, and they all are huge into it as a hobby. My dad has many skills as well. Right now, that's our saving grace, sweat equity. We may not have much money, but when you can install appliances, finish hardwood floors, section off and finish the basement, and add other amenities that may not cost much to buy but cost a chunk to install and fix, you have an upper hand in all this. Even though the houses that we are looking at may not be in the best condition, a little elbow grease, some paint, and sweat go a looooong way.
We started the search, and I think right now, we have seen 50+ houses. Some are in total disrepair, some are in not that great sections of town, some are just a little too small. So we trudge on. The other downside? Because the amount of money we are approved for is low, most of the houses we have looked at have been either short sales (where the sellers owe more to the bank than they will ever get at market for the house, which means the bank has to approve the sale) or are foreclosures (where the bank owns the property). This makes the process extra strenuous because we can't just go in and sign the agreement, inspect, settle, and move in. No, we have to take that extra step through the bank, which is what holds up most sales and takes forever- because of the housing market and the economy, and since most of these sellers bought when the market was grossly inflated, there are stacks and stacks and stacks of these agreements waiting for approval. I am not kidding- clerks are hired just to clear this paperwork. This process can add up to 3 MONTHS to the entire ordeal. Whoa.
Finally, the topper to the whole thing is that since we are first time home buyers, we are going for that $8,000 tax credit- the biggest reason we are looking now, instead of waiting a little bit. Which adds a bit of a time crunch to the whole thing- the paperwork for that has to be submitted by December 1st, and to do that, Lauren wants us in a house by Halloween. Count backwards 3 months, and yes, that puts you right about...NOW. Just a smidgen pressed for time. On top of all of that, we are doing FHA as first time home buyers. Not a bad thing, as it often offers lower interest rates and required settlement help, but it does mean special home inspections and weird criteria to meet- no dirt on the walls, things like that. Odd, but we take it as it comes, and hope for the best.
Right now, we have found 2 that we really like. First one is a 2 br/1 ba in good condition. It's got a family room and a living room, plus the dining room and a huge laundry room. No basement, no garage, but a good sized lot. It's in a great area, and the interior is in good condition. We put the bid in oh, 6 weeks ago, but it's a short sale, and with 3 other offers on the house, could take a while- and with that many bids, we may not have that good of a chance of getting it. Plus, Mark raised some concerns of termites- there is already damage on the back of the house, and since it's a slab house, he is worried about the condition underneath. The good part is there is room for improvement/additions, if we wanted to, and in more ways than one. There are some other FHA requirements that have them worried as well, so we decided to go out looking for more houses, hoping to find another one.
The second one is also a short sale. It's a 2 br/1 ba as well, but it's got an already finished attic, a double sided basement, a sun room, and a deck. It's also got a shed out back. The kitchen is sooo much bigger! Because of where the bathroom is located, we could easily add another bathroom upstairs in the finished attic, and have a master suite. The possibility exists that we could finish off half the basement, since it's a dry basement. If we do that, we can also add a bathroom downstairs as well. It needs some work- it's got hardwood floors throughout that need to be taken care of, the kitchen floor needs to be completely redone, all the carpet over the wood needs to be ripped up (cat pee...eww), it needs paint throughout, some windows and the slider need to be replaced, the sub floor in the attic needs to be redone, and on top of that all, there is still stuff left over from the sellers, and all that has to be hauled out and away. The good thing with this one is it is in much better shape structurally, and once fixed up, will definitely appreciate in value. It's in a little bit more iffy part of New Castle, but it's not bad at all, since the Catholic Church up the block has done some revitalization in the neighborhood, which has really turned it around (it wasn't bad to begin with, but it had started to slide 10 years ago when my older sister lived on the next street over. Since the church's efforts, it's really turned around). This one is definitely our top pick. And since we are the only bid on the house, and have been since it was re-listed (note the re- it's been on the market since around last October, and even then had only 1 offer!). We think they haven't had any offers because it's listed really high for the condition it's in- we put in at our highest, and apparently, the sellers are liking it and willing to take our offer, once a few things in the paperwork are changed. It's the bank approval that we have to worry about.
Of course, we now joke that we will find out about the house and my surgery at the same time, and it will happen when we are away in NOLA chaperoning the youth group for the National Youth Gathering. Then, Brian would have to do all the stuff to the house himself while I recuperate. Of course, we will take it either way, but having to work because I got the surgery I have been fighting for is something he will gladly and joyfully shoulder.
During all of this, Brian has been awesome. I know I say it a lot, but it really is true- he is my better half, and wants only the best for me. This entire time, when I am weeping and wailing about not having a job to contribute more to the search, Brian looks at me and says, "I just want you better. I don't want your money, I don't want your work- I just want you not in pain." You can tell he is so heartfelt about it. He keeps telling me that the long housebuying process is so painful for him, all because he just wants to give me a home, something we can build together. I know that I may not seem grateful at times, and yes, we do fight. But at the end of the day, when I am lying in bed in the dark, I am saying prayers of Thanksgiving to our Heavenly Father above for the wondrous gift He has seen fit to give me.
I am so humbled that God sent Brian into my life, and I will always and forever be in debt to my Lord and King, not only for sending Brian, but for the ultimate gift of love- His Son, Jesus. Wow, what a wonderfully amazing God I have! With every breath I take, I will praise Him. And with every thought I have, I will thank Him- for the love of my life, and all that I have, despite my circumstances. Jesus loves me, this I know...
First off, let me explain something. If you haven't read below, please do, and take note of my medical situation. For us, the decision was made for me to live with Brian instead of my mom because of my medical situation. It's certainly not ideal, but Brian is better equipped to take off work if needed for a medical procedure, or if something goes wrong and I am bed bound. My mom is a home infusion nurse, and while she is obviously devoted to her family, that devotion includes working a job that takes many hours, with not much leeway. Me living with Brian, who is better able to care for me all around, works best in this pitifully crappy situation. Like I said, not ideal, and not what I wanted to be doing ("living in sin", as some would say), but right now, my health has to take precedent.
So we begin the search for the house that we would make a home. First off, let me say that our realtor is AWESOME. Yes, all caps AWESOME. Lauren Hill, of Remax of Wilmington. I cannot recommend her enough. When Brian and I had that initial conversation, it was put upon my shoulders to contact Patrick, our pastor, and see what, if anything, he could recommend. He told us that Lauren, who is a member at our church, is a realtor and that she helped him get into 2 houses, sell the first one, and helped his mom sell her house and move as well. Since we know her through the church, I felt comfortable pairing up with her. And it has not been a mistake. She really has steered us in the right direction, flat out telling us where she wouldn't take us or sell us because the neighborhood or surrounding area was bad. She has given us her honest opinion, telling us we didn't want this house or that one because the construction was known to be shoddy, even if the area was okay. She even went so far as to take us to a not so good section of town to show us what we were "missing" (we didn't even get out of the car, it was that scary!). When we have found something we like, she insists that Mark (Brian's dad) and either my mom or dad come and approve the house- make sure there are no unforeseen issues that might get us in trouble down the road. Lauren Hill, of Remax of Wilmington. Remember that name, because I will always recommend her to anyone that asks. She's amazing, simply wonderful.
Okay, enough about the realtor (we love you, Lauren!). Unfortunately, being young 20-somethings, we don't have much saved or make enough for a huge house. We were pre approved for low amount, but we are determined to make it work. Mark taught Brian and his brother, Alan, carpentry and wood working as a skill very early on, and they all are huge into it as a hobby. My dad has many skills as well. Right now, that's our saving grace, sweat equity. We may not have much money, but when you can install appliances, finish hardwood floors, section off and finish the basement, and add other amenities that may not cost much to buy but cost a chunk to install and fix, you have an upper hand in all this. Even though the houses that we are looking at may not be in the best condition, a little elbow grease, some paint, and sweat go a looooong way.
We started the search, and I think right now, we have seen 50+ houses. Some are in total disrepair, some are in not that great sections of town, some are just a little too small. So we trudge on. The other downside? Because the amount of money we are approved for is low, most of the houses we have looked at have been either short sales (where the sellers owe more to the bank than they will ever get at market for the house, which means the bank has to approve the sale) or are foreclosures (where the bank owns the property). This makes the process extra strenuous because we can't just go in and sign the agreement, inspect, settle, and move in. No, we have to take that extra step through the bank, which is what holds up most sales and takes forever- because of the housing market and the economy, and since most of these sellers bought when the market was grossly inflated, there are stacks and stacks and stacks of these agreements waiting for approval. I am not kidding- clerks are hired just to clear this paperwork. This process can add up to 3 MONTHS to the entire ordeal. Whoa.
Finally, the topper to the whole thing is that since we are first time home buyers, we are going for that $8,000 tax credit- the biggest reason we are looking now, instead of waiting a little bit. Which adds a bit of a time crunch to the whole thing- the paperwork for that has to be submitted by December 1st, and to do that, Lauren wants us in a house by Halloween. Count backwards 3 months, and yes, that puts you right about...NOW. Just a smidgen pressed for time. On top of all of that, we are doing FHA as first time home buyers. Not a bad thing, as it often offers lower interest rates and required settlement help, but it does mean special home inspections and weird criteria to meet- no dirt on the walls, things like that. Odd, but we take it as it comes, and hope for the best.
Right now, we have found 2 that we really like. First one is a 2 br/1 ba in good condition. It's got a family room and a living room, plus the dining room and a huge laundry room. No basement, no garage, but a good sized lot. It's in a great area, and the interior is in good condition. We put the bid in oh, 6 weeks ago, but it's a short sale, and with 3 other offers on the house, could take a while- and with that many bids, we may not have that good of a chance of getting it. Plus, Mark raised some concerns of termites- there is already damage on the back of the house, and since it's a slab house, he is worried about the condition underneath. The good part is there is room for improvement/additions, if we wanted to, and in more ways than one. There are some other FHA requirements that have them worried as well, so we decided to go out looking for more houses, hoping to find another one.
The second one is also a short sale. It's a 2 br/1 ba as well, but it's got an already finished attic, a double sided basement, a sun room, and a deck. It's also got a shed out back. The kitchen is sooo much bigger! Because of where the bathroom is located, we could easily add another bathroom upstairs in the finished attic, and have a master suite. The possibility exists that we could finish off half the basement, since it's a dry basement. If we do that, we can also add a bathroom downstairs as well. It needs some work- it's got hardwood floors throughout that need to be taken care of, the kitchen floor needs to be completely redone, all the carpet over the wood needs to be ripped up (cat pee...eww), it needs paint throughout, some windows and the slider need to be replaced, the sub floor in the attic needs to be redone, and on top of that all, there is still stuff left over from the sellers, and all that has to be hauled out and away. The good thing with this one is it is in much better shape structurally, and once fixed up, will definitely appreciate in value. It's in a little bit more iffy part of New Castle, but it's not bad at all, since the Catholic Church up the block has done some revitalization in the neighborhood, which has really turned it around (it wasn't bad to begin with, but it had started to slide 10 years ago when my older sister lived on the next street over. Since the church's efforts, it's really turned around). This one is definitely our top pick. And since we are the only bid on the house, and have been since it was re-listed (note the re- it's been on the market since around last October, and even then had only 1 offer!). We think they haven't had any offers because it's listed really high for the condition it's in- we put in at our highest, and apparently, the sellers are liking it and willing to take our offer, once a few things in the paperwork are changed. It's the bank approval that we have to worry about.
Of course, we now joke that we will find out about the house and my surgery at the same time, and it will happen when we are away in NOLA chaperoning the youth group for the National Youth Gathering. Then, Brian would have to do all the stuff to the house himself while I recuperate. Of course, we will take it either way, but having to work because I got the surgery I have been fighting for is something he will gladly and joyfully shoulder.
During all of this, Brian has been awesome. I know I say it a lot, but it really is true- he is my better half, and wants only the best for me. This entire time, when I am weeping and wailing about not having a job to contribute more to the search, Brian looks at me and says, "I just want you better. I don't want your money, I don't want your work- I just want you not in pain." You can tell he is so heartfelt about it. He keeps telling me that the long housebuying process is so painful for him, all because he just wants to give me a home, something we can build together. I know that I may not seem grateful at times, and yes, we do fight. But at the end of the day, when I am lying in bed in the dark, I am saying prayers of Thanksgiving to our Heavenly Father above for the wondrous gift He has seen fit to give me.
I am so humbled that God sent Brian into my life, and I will always and forever be in debt to my Lord and King, not only for sending Brian, but for the ultimate gift of love- His Son, Jesus. Wow, what a wonderfully amazing God I have! With every breath I take, I will praise Him. And with every thought I have, I will thank Him- for the love of my life, and all that I have, despite my circumstances. Jesus loves me, this I know...
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