WHICH IS THE BEST BUY?

 
HOUSE A
TOWNHOUSE B
HOUSE C

Price

$ 36,000

$ 43,300

$ 43,900

Cash Needed
$ 7,500

$ 10,500

$ 8,893

1st loan

$ 28,500
$ 23,000
$ 23,150
Type
FHA
VA
FHA
Interest
10%
8.5%
8.5 %
2nd loan
$ 9,800
$ 11,857
Type
Seller Carryback
Home Improvement
Interest
11.5 %
$20.99 %
Payments

$ 293 PITI MIP
(principal, interest, taxes, insurance, mortgage insurance premium)

1st loan $ 213 PITI

2nd loan $ 97.04 PI

1st loan $ 244 PITI MIP

2nd loan $ 305 PI

Age
26 years
9 years
12 years
Advantages

House and Lot

  • Large fenced lot
  • Solidly built
  • R-2 zoning (permits 2nd unit)
  • Smallest and oldest house in the neighborhood

Neighborhood

  • Drainageway on one side
  • Close to school
  • Houses around it selling for $10,000 more

Financing

  • Low down payment
  • Assumable FHA loan

House and Lot

  • Neat and clean
  • Large kitchen
  • 3 BR, 1 3/4 baths
  • Access from alley

Neighborhood

  • High conformity
  • Located on cul-de-sac
  • Very close to work

Financing

  • Assumable 1st loan at low interest rate
  • Proposed carryback at reasonable rate

House and Lot

  • Large house
  • Large kitchen
  • Large fenced yard
  • 3 BR, 1 3/4 baths
  • Storage shed
  • Recently remodeled & upgraded

Neighborhood

  • High conformity
  • Close to work

Financing

  • Assumable 1st loan at low interest
  • Relatively low down payment
Disadvantages

House and Lot

  • Fix-up (needs work and cash outlay)
  • Small rooms, especially kitchen
  • 2 BR, 1 bath only

Neighborhood

  • 12 miles from work

Financing

  • High monthly payments for so small a house

House and Lot

  • Small lot

Neighborhood

Financing

  • Higher down payment
  • Possible stop date on 2nd loan
  • Monthly payments over $300

House and Lot

  • Roof will soon need replacing

Financing

  • High payments on 2nd loan
  • 2nd loan can't be assumed; buyers must reapply

Back