Down-payment | Imamother

Fave

Mon, Oct 18 2021, 11:11 pm

amother [ Watermelon ] wrote:

What?? This seems very fishy and sinister. Please due very diligent and thorough research before putting down money.

This is very common. It’s called “buying on paper”. Obviously OP needs to make sure that the developers are legit and have a lawyer review the contract before she signs on.

amother

Mon, Oct 18 2021, 11:13 pm

Fave wrote:

This is very common. It’s called “buying on paper”. Obviously OP needs to make sure that the developers are legit and have a lawyer review the contract before she signs on.

Yes, being signed with lawyer and dayan.

amother

Watermelon

Mon, Oct 18 2021, 11:13 pm

Fave wrote:

This is very common. It’s called “buying on paper”. Obviously OP needs to make sure that the developers are legit and have a lawyer review the contract before she signs on.

Many many many people have lost their entire life savings and borrowed money from buying on paper. Buying on paper 2-3 years in advance is a real big risk. It's a gamble. Especially when the money you put down is borrowed money.

Einikel

Mon, Oct 18 2021, 11:26 pm

amother [ Snow ] wrote:

Sounds like Bp

More like Williamsburg actually.

amother

Candycane

Tue, Oct 19 2021, 12:01 am

The problem I’m seeing is that you won’t have any reduction in overhead (rent) for atleast 2 years. And you’ll be owing ppl money.

How are you going to manage paying rent and payment plan of the loans? You need to find someone that can lend and only need the money back in a while, then it gets really hard to commit to that in advance.

I know you don’t have the option to save slowly because the market is rough but where is the money going to come from?

amother

Indigo

Tue, Oct 19 2021, 12:06 am

amother [ Watermelon ] wrote:

If the money is borrowed she has no risk, just the people who lent the money have risk.

OP what about a construction loan?

amother

Tue, Oct 19 2021, 12:31 am

amother [ Indigo ] wrote:

If the money is borrowed she has no risk, just the people who lent the money have risk.

OP what about a construction loan?

What's that?

amother

Tue, Oct 19 2021, 12:32 am

amother [ Candycane ] wrote:

We bh have a plan for that, just not the time to save up.

lamplighter

Tue, Oct 19 2021, 1:32 pm

There aren't any secrets.
Speak to a mortgage broker, they will tell you your options. 3.5% is a minimum for PMI mortgage.
Then speak to anyone you know who may be willing to help, present them with a written agreement and payback plan and daven.

amother

Powderblue

Tue, Oct 19 2021, 1:50 pm

We borrowed $80,000 from family members to help cover our down payment in BP. A couple of years ago. We'be been penny pinching since then & bh we're almost finished repaying.

amother

Azalea

Tue, Oct 19 2021, 1:54 pm

I recently spoke to a mortgage broker about BP and was told I would have to put down 20 percent as down payment which is a huge sum. Is this incorrect?

amother

Copper

Tue, Oct 19 2021, 2:28 pm

We recently bought a summer home on paper. At the time of signing contract we needed to put down a deposit. Only upon closing 2 years later can we get a mortgage. Until then it is not yours and you cannot mortgage it in any way. A construction loan would be for the builder to take.

Are you going into contract now or actual closing?

shabbatiscoming

Tue, Oct 19 2021, 2:37 pm

Is buying on paper not done so much in america? Here in Israel, everyone and their brother do this as it is cheaper.
We did this 7 years ago. We signed, with a lawyer, a mortgage broker helped us through everything, and we had to put certain amounts down during the building of the development and then at the end we were able to get a mortgage. And we moved in about 2 years after they started building.
Its not fishy and its not sneeky. Its a different way of buying property. Thats all.