Need Advice Buy Cash v Mortgage (real estate, HOA fees, condo)

[k9boo]

Hello,
I need a little advice from all you smart people out there. I have about $24K cash in the bank. I found a condo I like for $20K in Ft Myers. Do I buy it cash or try to get a mortgage? My credit scores are 580 and 599? Can anyone offer any advice.. This will be my first time purchasing a house. The first mortgage company I called would not do a loan under $30K and said that because I do not use credit cards anymore it is hurting me. Thanks for your help

[coastal chic]

You will most likely not be able to get a mortgage for several reasons. 1) Your credit score. 2) The low cost of the condo. 3) It's a condo.

Cash is king. Good luck and enjoy your new home!

[nhkev]

personally I would use cash but if you're worried that because it will leave you with only a little buffer than maybe ask the seller if they will do a Private mortgage for something like 15,000 for a 5 yr period. at a reasonable rate for both of you say... like 6%

[Hialeah_Rules]

how far do 24k go in Ft Myers?

[hiknapster]

Yeah. I'd love to know where it is located.

[nhkev]

make sure it's not a time share with say 1/4 ownership

[coastal chic]

And be sure you know how the condo association's finances look, and the overall condition of ALL buildings in the complex. If serious repairs are in the near future (new roofs, repipes, etc) you could be in for a big assessment. Not trying to scare you, but educate yourself extensively before getting into something that looks great from the outside, but will be much different a year down the road.

Also, wanted to add that banks are being so cautious today, they won't even talk to you unless your credit score is 700+.

[Jkgourmet]

Originally Posted by coastal chic

And be sure you know how the condo association's finances look, and the overall condition of ALL buildings in the complex. If serious repairs are in the near future (new roofs, repipes, etc) you could be in for a big assessment. Not trying to scare you, but educate yourself extensively before getting into something that looks great from the outside, but will be much different a year down the road.

excellent advice. I'd go one step further and make a professional inspection a contingency of my purchase offer (paid for by the buyer).

Also, wanted to add that banks are being so cautious today, they won't even talk to you unless your credit score is 700+.

unless Florida is substantially different than other states (including equally real estate damaged AZ, TX and NV, i would respectfully disagree. If one has what USED to be a standard 10% down payment, a 650-660 credit score will easily get you a loan. 20% down will get some lenders interested with a credit score as low as 630-640. This assumes that the seller, buyer, and lender can all agree on an appraised value of the property.

[nhkev]

I don't know how much I believe the Lenders aren't lending reports.... I was approved for a mortgage in less than 5 minutes , my parents bought a house in New Hampshire with a mortgage no problem, both my brothers just recently refinanced (one doesn't have the best of credit). The banks are saying lending numbers are down due to demand... the amount of applications are down, but the percent of approved applications are in line with historical percentages.... they just aren't giving away money to people that are undeserving of it.

[CCRESI]

I would pay cash, then get a credit card to build credit.
Make sure you will have enough funds for closing, and after closing for taxes, INS and hoa fees if applicable. In other words, make sure you don't deplete your funds by purchasing and then you are condo poor.

It's silly to get a mortgage if you don't need one.