Post-College Home Ownership

First, if you do not yet know the HUGE ADVANTAGES of having homeownership over renting right now, check out my previous article on “The Huge Advantages of Having Homeownership Over Renting”. I would really recommend a home to be your first big purchase (even before a new car or that beautiful rolex or gucci purse you’ve been eye’ing)

After I told a very smart, post-college friend of mine (we’ll call her V) that I work for an FHA-approved mortgage lender, she jokingly asked me, So what, I can buy a house now with 5000 dollars in the bank? Hook me up, Dan! I know that seems silly since the idea of homeownership can be quite overwhelming for a college student with school debt in the way, but if you’re reading this, V, you will be surprised to know, Yes, it’s possible!

While I wouldn’t recommend it right away (see this article here on “How Much House Can You Afford”), it is possible to buy a home with 5000. Here’s why:

1. The Federal Housing Administration (FHA) has what are called FHA insured loans. These loans only require a 3.5 percent down payment. There are additional closing costs (that can be waived, as I will explain later), but if you really think about it, 3.5% is not that much money at all. This incentive is trying to help non-homeowners (with the right credit and income) finally dive into the housing market in order to reverse the recent oversupply of housing.

How much homeloan can I get with 5000 dollars through the FHA (example):

(.035) x (FHA loanORhome value) = (V’s down payment)
(.035) x (FHA loanORhome value) = $5,000
→ $5,000/(.035) = $143,000
……………………….. so, while definitely not the playboy mansion, considering today’s home values, you could find yourself moving into a very nice home Or you can always use this formula and save more money till you’re ready to buy that dream home

Note: Also keep in mind, your loan qualifications also rest heavily on your income, reserve assets, the interest rate, and your current liabilities. Obviously, it will be hard to get a loan if you can’t pay for it
2nd Note: There are limits to the max loan values based on county. Scroll to the bottom to find a link to look up FHA mortgage limits.

2. Here’s $8000, to help you out. Another part of the stimulus package came from President Barack Obama. Signed into law in mid-February, qualified first-time homebuyers can get a tax credit worth up to $8,000. While this doesn’t help you pay for that original 3.5% down, it can help with utilities, taxes and insurance, your first few monthly payments, and yes, the closing costs (usually 3-4000 dollars even with FHA)!  The best part is that you don’t ever haev to pay it back.

Note: The credit only applies to those who buy a home on or after Jan. 1 and before Dec. 1, 2009.
2nd Note: If you buy in 2009, you will get your $8,0000 with your tax return in 2010.

3. Usually, loan officers are encouraged not to sell on “rate” since doing so makes you a slave to the market. A real mortgage professional understands that the benefit and savings of every loan is what should really be important to the client, not the rate. Despite that, though, rates actually are at an all time low right now. All you really need to know is that the government bought a bunch of mortgage-related products from Fannie Mae and Freddie Mac and that’s kept the interest rates incredibly low relative to the 90s and th 80s and probably the future as well. Rates are definitely on the rise though, and with inflation, one should expect those rates to rise before the year is over. Low rates make those monthly payments on the home VERY attractive.

So V, yeah, ideally, all non-homeowners ought to buy homes right now. While the government programs available now are definitely helping people get into these homes, in the future, these government controls are going to have a backlash of inflation a lot sooner than you may think. My advice, don’t buy a home you can’t afford (as house values may still be dropping in the future) and continue to save money and invest wisely.

All the best,

Mr. Dan Pham

Shameless Blogvertisement For Buyers:

If you’re interested in getting prequalified, preapproved, or finding out more about whether you qualify for these programs (and even more money-saving programs and professional advice that my clients have access to), go ahead… email me at dpham@mmcdcorp.com or call at (925) 7710-8900 ext 160.

Disclaimer:
All of the information I’ve provided here is for free and not for profit and should not be considered professional financial advice; these are my opinions and selected articles I’ve found interesting.

references:
$8000 First Time Home Buyer Tax Credit: http://www.usnews.com/blogs/the-home-front/2009/05/29/the-8000-first-time-home-buyer-tax-credit-program-expands-5-things-to-know.html
FHA Mortgage Limits: https://entp.hud.gov/idapp/html/hicostlook.cfm

A common misconception is that the FHA is the actual lender. This is wrong. The FHA only creates these programs, it is the FHA-direct lenders like myself who are the ones who can give you access to these programs. Reference this article, and I’ll give you a good deal!

pros, more professional mobility, more interesting, potential for salary raise in june (when id actually start needing money for student loans)

cons, may make me broke before then, would take on part time job as waiter as only source of income, may have less time for fun

apr 13 – 2009

Today was great, because I was able to fill the open territory in Billings, Montana. I certainly hope they do a goodjob with the leads, it’s always a strange feeling to imagine my company is so “inefficient” in so many sectors of marketing ourselves despite our large web presence in the advertising sphere— and then putting our success into the hands of people we can’t track – aye >_<. I guess that’s the nature of the internet though, everyone’s an entrepreneur. I wish more people would realize the value added though and help me out

Also took a phone interview today around lunch time for a San Francisco-based Marketing and PR firm’s unpaid internship. They suggested possibly part-time. They will give me a call on Wednesday to see about an interview. I feel kind of weird about all of it though, part of me thinks I should let my management know I am considering an occupation change; however, what if I don’t end up taking it? It’d be silly to say I’m leaving and then not…

Alex was also pretty emo today. Apparently his entire division is up for review tomorrow, and the division hasn’t been doing so hot. He is worried about getting canned. I don’t think he will be, as hes a hard worker, but I guess it’s not really my call.

Crap, I’m addicted to this fun & cute little flash game

http://stickabee.mybrute.com/
Anyone heard of this?

Click on the link and take ten seconds to create a “brute” to challenge mine, Stickabee.A fun and silly little game that can help kill a few minutes. Or more, depending on how addicted you can get to crazy flash games.  Lol

But yeah, go challenge my brute. Now. Now!

inside

war doesn’t leave me alone
when i leave the office
and drive into the sun burning up

there are old men and men in suits
looking at me and i want to fight
i am the inside of my work

i think of her and it feels a little better
that is reason enough

Never take it personally

I called a woman today, and I had exactly what she wanted
A row of velvet eggs with life inside
And the armrest chair lifted me into the air
Cries the felt-tipped mirror.

I wanted to grab her through the phone
thank you / thank you
you are what I wanted too.

no work is easy.

the most rewarding

is from within.

take each fear down,

and place it below your feet.

Mystery

The other day, I went “up the mountain,” an expression which has been in my family for the past ten years. What it is is ching ming , an annual Chinese tradition that memorializes the dead. You burn ghost money, bow, pray, etc etc. My grandfather died 10 years ago, and while certainly I see po po (grandmother) choose to re-face the sadness of losing her husband every year, the immediately weight of death has long been replaced by acceptance and respect for gung gung‘s  (grandfather’s) life. My grandfather was buried in Mountain View Cemetary in Oakland, CA, which is why we call it going up the mountain (it’s sorta up a mountain). Ching ming is one of the rare times I get to see nearly all of my extended family, and afterwards, we usually get lunch in Alameda at this pretty good dimsum place to catch up.

One uncle I don’t see too often is Uncle Oscar. He’s the only Mexican relative I have and he also happens to be a Jehovah’s Witness. This means he doesn’t often celebrate birthdays or Christmas or anything really for that matter. He was there the other day though and he is actually a pretty funny guy. He has been an electrician for most of his life, married my Aunt, and has 4 kids.

I know this is a pretty long intro to the story, but I guess this sentence will do just as well as any other transition sentence:

Over ha gao and siu mai Uncle Oscar was explaining why one should have more than one kid:

“You gotta have more than one kid, because if you don’t you’re taking mystery out of your life. With just one kid, you can come home and find something’s broken, but then, you know exactly who it is. But if there’s two kids, then you aren’t sure, it’s a mystery.”

He laughed for a second here, and then continued:

“Yeah, there are things in my house that have broken and I still don’t know for the life of me who did it. I’d come home and have three kids in front of me with blank faces. ‘Okay, kids. Who did it…’ I’d be met with three identical faces of innocence. I’d always laugh to myself seeing them just  a few minutes before whispering to each other, ‘Shhh dont tell; dont tell!’”

I guess it was best not knowing anyway?

yellow-on-yellow racism, i has it.

i hate cemetaries and i hate chinese boys and even some chinese girls
i think cemetaries would be a great place to pick up those
cute high school asian girls, i wanna holla, is that weird?
maybe it’s the vicinity of death. life in the face of it?
i am coughing from the ashes of the trashcan full of ghostmoney
that that guy is burning right next to us; fuck you old man, move your shit.
i want to kick his trashcan over so his entire family
catches on fire and screams just like in the movies.
i’d throw them off the ledge, i’d kick over their family’s tombstone.

sometimes i wonder at my rage, where is this anger coming from?

Trainings nearly done

Chris and Adam kept up their training today, and we did a lot of roleplay to prepare for the calls we’re going to be making. It was a very tiring day. Took a nap when I got home but I’m still pretty tired. I might have allergies as well… anyway I  really really need to draw a diagram of the sales and service process for myself. As a graphical learner,  it’ll help me to feel more comfortable with the program tomorrow. I also need to clean my room. Ugh, this blog is turning out to be quite whiny haha. Heres a poem since one of my life goals is to write a poem everyday:

Commitment

Young and with the cool summer breeze in our faces,
It is easy to hold your tiny hand and find that we float,
Two ducks, the only two
In the lake.

But sometimes, natural storms may push
Me, away from you;
And in a panic, I try to hide behind
The simple duck life of floating.
Drifting.

The only difference between floating and
Drifting is
Contentment.
Were I not to miss
The feeling of you in my hand,
And if the lake did not feel vast
And empty without you,
I would consider floating,
But these things are home
And I feel marooned.

For this reason, I am glad to be a man,
Able to build a boat to weather the storms
And prevent the drifting of our hearts.

Build this ship with me, my matey
I will plie the oars
and we can set sail for the storm,
The point is
We float on.

I am sorry it took so long for me to commit but it is good we have set the sails. I am glad to have you here.

underpressure,heartattack

8-5, I heft the weight, and even the overhead shade feels
heavy
when the sun crack down,

sore from the burden, the sunkin wreck is that i lift
iron
against the grain, while my arteries are shot to pieces

chest fills with sand, and only at the seemingly
last exhale,

one thought stops
to deflate:

over the slope
, i siesta
next to her feather seabed
and kid -  nap
stow’way dreams
of she.