I thought we were in a recession? Huh!

[Grandpa Shooter]

Found a property in Maine we really liked the looks of.  Spent a lot of time researching the area, hunted down maps of the area, along with photo imagery via satellite.  Really looked good!  Sent a message to the listing Realtor requesting info on who they used for finance and what the terms would likely be.

Got back an email saying that it would require 25% down and could only be financed for a max of 10 years at a MINIMUM interest rate of 8.125% depending on credit history PLUS 1% for out of state buyers.

WHAT THE H....  At the peak of the boom credit was never that expensive around here.  Anyone on here, including Brad in Tx, got any insight into this stupidity?  I can't believe it.

Mumble, Mumble.........

[S. Williamson]

Stop hating America and pay the incredibly high rate. 

The rest of us are depending on you to personally re-stimulate the economy.







 

[charby]

Find a different finance company

[Headless Thompson Gunner]

No kidding.  Going rate for a 30 year mortgage is about 5% these days.  8%, 10 year max, and 25% down is entirely unreasonable.

[RocketMan]

It sounds to me that those Maine folks don't want any Arizona types moving up that way.  Are Maine folks picky that way?

[Grandpa Shooter]

It sounds to me that those Maine folks don't want any Arizona types moving up that way.  Are Maine folks picky that way?

They were friendly about taking our money while on vacation.  I will check into it, but won't buy at that rate.  That is damn near usury in my book.

[AZRedhawk44]

They don't sound like they like "sandbirds" very much.

Get your loan down here, then go up there with pre-approval.  They're milking your lack of familiarity.

ETA:  Or if you have to get the loan processed in-state, then get it originated with some bank in a big town, like Portland.

[Northwoods]

Yeah, they're just trying to jack you.  Unless the home is an old trailer there's no chance that that would be a reasonable market competitive rate.  Chances are the realtor gets a kickback from some sub-prime lender that has managed to avoid going under yet and that is who she got the quote from.

Assuming you have reasonably good credit, can put at least 10% down, and there's nothing wonky about the property pushing into an unusual class of properties from the bank's perspective I'd think that a 15-30 year note with no points or origination fees in the 5-6% range should be very doable.

[Balog]

I know that for myself, VA loans are a good option. Better rates, no mortgage insurance, and no down payment needed. But some of that is from having a high disability rating, I believe.

[PTK]

Do yourself a favor and look at Montana's real estate. Similar climate to Maine (I've lived both places, now) but with realistic housing prices. There are 15 acre undeveloped properties for $5k to start; and that's only 20 miles NW of town. Further out, $40k will get you 40-60 acres and a house - IF you don't mind being way out of town. I plan to build up what I have here in Bozeman and then leave in the next five years to get further out into nowhere.

There's a whole lot of nowhere, here.

Downsides: unless you have a skill, you're not going to make a living wage without an act of God. An employee at a store told me a phrase that has stuck with me, describing how he tries to make ends meet but loves the state itself... "Montana: it's poverty with a view." 



(But if you DO move to Maine, go to Yummies near the Kittery Trading Post. Amazing chocolates, there - if your wife likes chocolate, give them a try)

[Leatherneck]

That sounds like an owner-financer trying to buck up his retirement, GS.

TC

[Tallpine]

Further out, $40k will get you 40-60 acres and a house - IF you don't mind being way out of town.

I don't think you've been seriously shopping in Montana 

We are in the eastern part of the state (pine hills, no mountains or streams).  The 80 acre place next door to us with 1 bedroom log cabin and unfinished basement sold for about $225K.

We are way out - at least in terms of commuting distance (& time, considering the roads).

[wmenorr67]

Just signed a 30yr VA mortgage, zero down, on $100,000 at 5.25 percent. I have no disability rating yet.

[PTK]

I don't think you've been seriously shopping in Montana 

We are in the eastern part of the state (pine hills, no mountains or streams).  The 80 acre place next door to us with 1 bedroom log cabin and unfinished basement sold for about $225K.

We are way out - at least in terms of commuting distance (& time, considering the roads).

None of these are listed online, from what I can tell - we looked at properties in Manhattan, outside of Ennis, in a sort of shady part of Belgrade, etc. There are indeed properties (let's not count Butte!) for $40k that include 40+ acres and a small house.

If we DO count Butte... I think we both know how cheap a house can be in there - the whole damn town is a Superfund site. I found a brick house there for $26.5k, about 2k sq.ft., on 1/4 acre. When I started backing off, they said they could go to $22k. 


Now, I will indeed agree with you that SOME lots go for a lot more money. Doesn't mean they're worth it, though... 

[Tallpine]

The funny thing is that our county, which for a long time has been one of the poorest in the US (imagine a piece of remote West Virginia moved out west), has a brand new coal mine and an active R/E market.

I think a lot of rich folks are out here looking for bug-out locations, also  


But generally, western Montana is a lot more expensive that this side of the state.


But geeze!  Then maybe I should sell my place and move over there and be out of debt 

[Headless Thompson Gunner]

The problem of living in cheap parts of the country is that there isn't nearly as much money to be made there.  There aren't many businesses or professions that can be successfully decoupled from their location.

[Brad Johnson]

Got back an email saying that it would require 25% down and could only be financed for a max of 10 years at a MINIMUM interest rate of 8.125% depending on credit history PLUS 1% for out of state buyers.

WHAT THE H....  At the peak of the boom credit was never that expensive around here.  Anyone on here, including Brad in Tx, got any insight into this stupidity?  I can't believe it.

Mumble, Mumble.........

Sounds like they thought you were trying to get an owner-finance.  That, or it's a condo and requires condo financing.

As of this morning a fix 30 year FHA was going for 4.875% (four and seven eights) locally - 3.5% down, no points, no buydowns, and appx $800 in total origination/admin fees.

No kiddin, folks, if you need a mortgage on something, let me hook you up with one of our local lenders.  I had a kid last week that got six out-of-town quotes - three online, one out of Dallas, and one out of Austin.  Every single one of the local lenders I deal with beat the quotes he got.  They did it quoting their everday rates and fees, and without being aware they were competing against out-of-town quotes.  That's just the way they do business.  Plus, if they tell you it's going to be a certain way, you can hang your hat on it being right.

Brad

[Balog]

Brad: we have an offer in on a short sale, and if the bank accepts it we'll be shopping for a mortgage. Do your local boys do VA loans? We had been thinking of going through USAA, they've always taken care of us before.

[Brad Johnson]

Yes, they do.  USAA is pretty good, one of the better nationwide lenders.  My experience has been that our local folks can beat them.

Also, check out ALLl your mortgage options.  Don't go VA just because you're a vet.  More often than not a a conventional or FHA product will get you better terms.  VA's main benefit is the no-down-payment function.  Aside from that there's no real benefit as FHA insured will get you roughly the same debt-to-income ratio consideration.

Brad

[Gewehr98]

VA's main benefit is the no-down-payment function.

And a damned nice benefit it is, too! 

[Balog]

Brad: nothing down is a nice thing for us, and my understanding was that the VA acted as mortgage insurance, saving me from paying it? And at least from USAA, we got a better rate VA than concentional.

[Brad Johnson]

The correct term is VA Guaranteed.  It's the rough equivalent to FHA Insured.  If the lender makes the loan under their criteria it's guaranteed against default.

The only wrench in the works is it puts you out of the running for a fixer upper (functional, not cosmetic).  Part of the guarantee provision is the house must be in a certain state of repair and liveability.  If not, someone must escrow the funds necessary for the lender-required repairs (as determined during the appraisal) before the loan will be made and closed.  The condition requirements are concerned with the property being safely habitable, weathertight, and free of conditions that are conducive to further deteriorations (example: an active water leak or peeling exterior paint).  As long as you're looking for a nice, clean place, it's shouldn't pose you any problems.

There are also some recent (Feb 1) industry-wide changes of fed mortgage regs.  I'm not up to speed on how they will affect VA.  Check with a lender to get the scoop.

Brad

[Tallpine]

The problem of living in cheap parts of the country is that there isn't nearly as much money to be made there.  There aren't many businesses or professions that can be successfully decoupled from their location.

You can't make any money around here.  The only way that we have done so well so far is working at home (mostly) for out of state companies.  Bits and bytes are pretty easy to export. 

But then the bubble popped everywhere else, but this area stayed about even or even gained a little.  I still think a lot of folks with a little bit of wealth left are expatriating to this part of Montana 

[KD5NRH]

The problem of living in cheap parts of the country is that there isn't nearly as much money to be made there.  There aren't many businesses or professions that can be successfully decoupled from their location.

Given worldwide shipping and that there Internet thingy, there are a lot that can, but won't.

If you don't do walk-in business, then anywhere you can find workers and get equipment and raw material to is a viable site, but some companies insist on keeping themselves in certain areas.