Buying vs. Renting Using FHA Loan & $8,000 First time Buyer Credit
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Buying vs. Renting Using FHA Loan & $8,000 First time Buyer Credit

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How To Save Money & build Wealth; Buying A Home Using The $8,000 First Time Buyer's Credit and an FHA Loan

How To Save Money & build Wealth; Buying A Home Using The $8,000 First Time Buyer's Credit and an FHA Loan

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Buying vs. Renting Using FHA Loan & $8,000 First time Buyer Credit Buying vs. Renting Using FHA Loan & $8,000 First time Buyer Credit Presentation Transcript

  • Stop Paying Your Landlord Buying vs. Renting How To Buy A Home Using an FHA Loan and The $8,000 First Time Buyer’s Tax Credit To Save Money and Build Personal Wealth
  • Stop Paying Your Landlord Steve Wagner – MBA, CIPS Real Estate Investment Consultant [email_address]
    • REMAX Action
      • 1600 – 16th Street
      • Oak Brook, IL 60523
  • Buying vs. Renting
    • If you are paying approximately $1500/month in rent, you could own a 2 or 3 bedroom home instead and you will actually save money and build equity
  • Buying vs. Renting
    • If you are paying approximately $1500/month in rent, you could own a 2 or 3 bedroom home instead and you will actually save money and build equity
    • This presentation will show you how you can buy a home using a FHA Loan, Seller Closing Credits, and the $8,000 First Time Home Buyer Tax Credit to buy a home for approximately $200,000 with little or no money down.
    • These are good quality homes which will allow you to stop paying rent, build equity and you can do it in an affordable way.
  • Buying vs. Renting
    • In order to implement this plan, you will need to understand your financial situation completely. I can help you do this.
  • Buying vs. Renting
    • In order to implement this plan, you will need to understand your financial situation completely. I can help you do this.
    • We need to understand your current credit situation. This is not just a credit score, it includes your whole credit report. You are entitled to get this information for free 3 times a year. Ask me how.
    • We need to understand your income and employment status.
    • We need to understand your sources of capital for an investment. There are sources you may not have considered.
  • Buying vs. Renting
    • If you are paying approximately $1500/month in rent, you could own a 2 or 3 bedroom home instead and you will actually save money and build equity
  • Buying vs. Renting
    • If you are paying approximately $1500/month in rent, you could own a 2 or 3 bedroom home instead and you will actually save money and build equity
    • Comparison:
      • Rental Cost - $1,500 plus utilities
      • PIITI * = $1,465 plus utilities
      • After Tax Cost of Owning = $997 **
    • * Principal, Mortgage Interest, Mortgage Insurance, Interest, Taxes, Insurance
    • ** Assumes 20% Tax Rate
  • Cash Needed To Buy- Example
    • Cash Required To Buy $200,000 Home Using FHA Loan; Seller Funding Closing Costs and Tax Credit Bridge Loan
    Purchase Price $200,000 Downpayment -$7,000 Loan Required $193,000 50% of Mortgage Insurance Premium $3,317 Loan Including 50% of Mortgage Insurance Premium $196,317 Closing Costs (up to 6% paid by seller) -$2,571 Upfront MIP -$3,317 Uses of Cash Downpayment -$7,000 MIP Upfront -$3,317 Total Cash Out -$10,317 Sources of Cash Adjustments At Close & Seller Closing Costs Paid $5,000 Tax Credit Bridge Loan $6,500 Net Cash Required -$1,500
  • Buying vs. Renting - Example
    • Comparison:
      • Rental Cost - $1,500 plus utilities
      • PIITI * = $1,465 plus utilities
      • After Tax Cost of Owning = $997 **
    • * Principal, Mortgage Interest, Mortgage Insurance, Interest, Taxes, Insurance
    • ** Assumes 20% Tax Rate
    With a qualifying FHA Loan and a Tax Credit Bridge Loan This Can Be Done With Little or No Money Down
  • FHA Loans - Buying a Home using a FHA Loan
    • Minimal Down Payment and Closing Costs.
    • Downpayment less than 3.5% of Sales Price
    • 100% Financing options available*
    • Gift for downpayment and closing costs allowed.
    • FHA regulated closing costs.
    • Seller can credit up to 6% of sales price towards buyer’s costs.
    • Easier Credit Qualifying Guidelines such as:
    • Minimum FICO credit score of 620.
    • FHA will allow a home purchase two years after a Bankruptcy .
    • FHA will allow a home purchase  three years after a Foreclosure . 
    • Easier Debt Ratio & Job Requirement Guidelines such as:
    • Higher Debt Ratio's than other home loan programs.
    • Less than two years on the job is allowed.
    • Self-Employed individuals o.k.
  • Buying vs. Renting - Example
    • Assumptions:
      • $65,000 household income
      • FHA Loan with 3.5% down payment
      • 30 year fixed rate mortgage at 5.25%
      • $200,000 purchase price
      • $7,000 down payment bridge loan (repaid
      • with $8,000 first time buyer’s tax credit)
  • Buying vs. Renting
    • If you want to me to help you develop and implement a plan to achieve home ownership, register on my web page and I will contact you right away.
    • As a real estate investor in 3 countries over 25 years, I can personally attest that affordable investment in real estate is a great way to build wealth.
    • With an MBA in Finance, I can help you thoroughly understand what you can afford and how to go about investing.
    • This is not a get rich quick scheme. It requires discipline and good sense, but it does work.
  • Buying vs. Renting – You Can Do This
    • If you are paying approximately $1500/month in rent, you could own a 2 or 3 bedroom home instead and you will actually save money and build equity
    • I will only work with you if you are serious about implementing this strategy.
    • If we choose to work together, I will give you my total loyalty and commitment. I will expect the same from you.
  • For More Information
    • Contact: Steve Wagner – MBA, CIPS
    • www.TransferToChicago.com
    • [email_address]
    • 630-433-6646
    • REMAX Action
      • 1600 – 16 th Street
      • Oak Brook, IL 60523