Please forgive my ignorance, I’m trying to read up on housing trusts but I would love to hear from people who are more educated. Thanks in advance
So I recently moved to Vermont and I am looking to purchase a home. My credit is near 800, zero debt, take home $2,800 monthly from a federal job after paying healthcare and retirement. No kids, have money for a down payment, closing costs and unforeseen repairs. I’m looking to spend about $125-200,000, on average my mortgage, property taxes and homeowners insurance would be $800-1,100.
One of my coworkers was telling me she wanted to buy a home through a housing trust, as long as you met income requirements and had money for closing cost they would help get you in a home at a very affordable price. Thing is to my understanding you don’t own the whole out right, the coop owns about a third of it if you decide to sell you have to sell it within the cooperative.
I’m guessing that have to be some downsides because it sounds like a good deal. Yes you don’t own the whole property but you can get into a nicer home this way. It would allow me to get into a newer home, a home closer to the main population centers, a home with more land or some combination which would be nice.
I’m wondering are there tax implications or are you losing money doing all the repairs and upkeep on a home you don’t fully own. How about worrying but when you do decide to sell the trust values your home less than the free market work or you have difficulty selling because the house has appreciated enough that lower income people don’t qualify?
See I would like to rent a couple rooms for at least a few years to help me further build up retirement savings and possibly pay down the mortgage so I could pull equity quickly and purchase a rental property.
Submitted August 25, 2019 at 07:59PM by Corey307 https://ift.tt/2Zej6df
