Beginer Question - Need advice - Posted by Justin
Posted by Justin on September 08, 2003 at 22:00:21:
Hello. I’m 23 and currently own and live in a town house. Through some nosing around I learned that the property next door to me is owned by an individual out of state. The property is becoming a little run down. I contacted the owner to see if she was interested in selling. She seems to be a pretty motivated seller. The townhouse will appraise to about $210,000. She doesn’t really know what the property is worth. She’s owned if for 10 years and has never raised the rent! She is collecting $735 per side. Average rates in the area are about $850. Tennants have been there for 7 and 10 years.
Anyhow, I told her I am interested in purchasing and she immediately shot me a price of $185,000. I hope to settle on about $180,000. My question is about the financing. The current owner is not interested in offering financing. I’m looking at getting conventional financing. Will I need to come up with 20 % of the purchase price? or just get the loan amount down to 80% of the appraised value? Its a difference of $36,000 down vs. $12,000 down.
Will the bank be interested in lending on this property? I have good credit but currently owe $199,000 on a $220,000 property. I’m basically just trying to explore my financing options of how I can make this happen.
I’d be happy to hear any responces. Thanks.