I have never owned a house but I want to buy my Mom a condo. She found one for about $50k that she likes. It's in our hometown zip code, close to family and newly renovated. (We are from the south in a LCOL.)
I guess getting a mortgage for this little is possible, but this would be considered an investment property because I'm not living there and buying for someone else. (Which is higher interest.) Also, I would have to go through the hassle of paper work, down-payment, closing costs, etc. My job is a contract that renews every year and I think that would be a hassle to prove my stability. I am also worried how this will affect my chances of buying my own home to live in (in the distant future) and I want to qualify for first time home owner benefits for my first "real" house.
My grandparents can put about $10-$20k towards the condo. I really don't see the point in going through hassle of a mortgage for $30k when I can make a cash offer.
I make $115k/yr and I have taken out a personal loan before and was planning on using the same lender since it was a quick experience and I liked their customer service.
I know the personal loan route will be extra interest but it would be a 5 year loan. Also, as an investment property, I can't get a traditional mortgage anyway and rates will be higher than usual home loans. Wouldn't the pros be more than the cons? Would the interest balance itself offset with not worrying about closing costs, etc.?
In addition to this, we want to buy it quickly. A cash offer could do that for us.
Any advice is appreciated, thanks!
Submitted May 18, 2021 at 07:48AM by djrainbowpixie https://ift.tt/3w6G2Ho
