Home Financing Question...

[kkeen15]

Hi all! In about five months FI and I''ll be moving to Ohio after living and working abroad for a year, and I want to buy or build (modular) a home to be ready to move into a month or so before I get home.

Here''s my problem: financing. We''ve got more than enough for a down payment, and we''ve had our jobs for quite a while. Our credit is excellent. I''m worried, however, that because we''re abroad and our employers are Korean, that we won''t be able to get (quality) financing due to proof of employment. We aren''t given pay stubs (my boss sucks, don''t ask), but we could show on our Korean bank account that every month, XXXX dollars are deposited. Could that be enough proof of employment?

Anybody have experience buying property from abroad, or even from across the country, not being present for any stage of the transaction? I''d appreciate any advice! Thanks, Kristin

 

[lindsal]

Kristin, my first advice to you would be to find an excellent real estate broker from an established company in the county you will plan on living in when you reach Ohio.

Use this broker to a) find out if it is even possible to complete the transaction without being present, some municiaplities do not allow this any more; b) secure a list of mortgage brokers that are reputable and have proven track records on dealing with financing for foriegn investors (b/c basically at that time, it is what you will be.), c) use the broker to explore the market to develop a true sense of what kind of $$ you are talking about for a house that suits your needs.

Good luck, it looks like you'll have quite a task in front of you.

 

[Todd07]

couple of thoughts.


Have you done your credit check


Have you opened a bank account in your new home town




Can you get a US family member to co-sign a loan? This might be a solution to pull out in case of rejection.

 

[Todd07]

Hi Kristin, One more thought to share.

You are obviously a bit adventerous/risk taker

I personally lived abroad for 9 yrs (Seoul, HK, Philippines). When buying property though, why take extra risk? Personally, I'd find a 1-2 month rental unit and buy when my feet are local.
- You're making a huge financial commit. What if the other parties are not as reliable as you thought or what if you have a bit of bad luck on the deal. You are not local to represent your interests and can't really trust someone you just hired to fully protect your interests.
- After spending a month in OH, you may change your mind on the neighborhood or type of house you want.
- After 1-2 weeks in OH, you will have many contacts for info/support that you don't have when in Korea.

Spend the extra for short term housing before you sign up for the 30yr mortgage

 

[marriahlyn]

My dh is a loan originator and I'm sure you can probably get a loan. DH's company doesn't do this but my MIL is VP of a bank that takes no doc applications. This is usually for the self-employed who don't get pay stubs. Basically you have to have great credit (scores above 700) to be able to do this but your bank accounts should be good proof.

 

[kkeen15]

Thanks, everybody, for your answers and advice! Its helpful to hear from anybody back in the States, b/c here we mostly have Korean friends who don't have a clue what we're talking about regarding houses, loans, etc...

lindsal--We'll definitely find a realtor in the next month or so. We've lived in central Ohio our entire lives(minus one year for Korea and one year for Florida), and our families and friends live there, so I'm confident we'll be able to easily do that. Thanks for the advice as far as questions we should consider. The primary question is a) can it even be done if we're not present?!?

Ricardo--I've gotten an informal credit check. I'm not sure what kind it was, but when I opened an account with my credit union at my last job in Columbus, I got a free one, and my credit was about 720. That was before my student loan payments kicked in. So I would think it should be better now, considering I've made payments for about a year.

I've already got two bank accounts in Columbus, and one here in Korea. Also, there's always the possibility that somebody will co-sign for us, as a last resort.

I know what you mean about not taking such a risk. This is our position: IF we go with a modular home, I am very confident that we can complete the transaction and have our home built within a month of our return to Ohio. However, IF we go with an existing home, we would like to have a relationship with our realtor, have spoken with several banks and mortgage brokers, and have some tours lined up for the week we return. So I wouldn't buy an existing home without being present.

Marriahlyn, after reading what you said and checking out eloan.com I'm sure we can get financing on our own, w/o a co-signor.

 

[kkeen15]

New question: anybody have any remarks on the investment value of a modular home vs. a gorgeous 100-yr-old home (that we would buy cheap and fix up), same price, both in the same neighborhood (which consists of mostly gorgeous 100 year old homes)? The neighborhood is "up-and-coming", meaning mostly young professionals and older, long-standing residents live there currently. Also, its in the Columbus city school system.

My major worry about a modular home is that it wouldn't be as good an investment as an older home. Here's my reasoning: an older home would be brick, beautiful on the outside, have higher quality parts inside such as wood floors, etc. A new home in the same price range wouldn't have these things...but it would have AC and better insulation

What do you think???

 

[Todd07]

Ignore my earlier comments about risk since Columbus is your home w/ friends and family. Great credit score, which should stay high as long as you make your student loan payments on time.




A good local RE agent is your best source of info but I'd go with the beautiful 100yr old home that needs some TLC. This assumes you have the time and $ needed to improve it. My feeling is that a new modular home will be full priced by the developer and there is little oppty to invest and improve the value.




Also, what does your heart say you'd rather live in.