The Trump Blog

Could this work or not?

There are sites out there for getting a housing GRANT- could you get a grant,
Buy one property, and then use that property as leverage to buy a second?

The second could be rented, and then you would have the tax advantages of owning two.

Could this help people who could not otherwise qualify for a home loan for house #1?


Lets try it with someone WITH crap for credit!
http://www.freegrantkit.net/housing.htm

If we could figure out a system to get those people with CRAP for credit homes, then put them into second properties, for income, we could secure the payments and stabilize the housing market.

Since there are more people with CRAP credit, the possibilities are endless if we could develop the system. Package and put real estate people in their place!
I got this idea when I called about a house located at 2402 w mulberry in Phoenix AZ
The realtor was terrible and was a little ****- if I did not have a lender she said, I could never get the house!
Is there a way to prove them wrong?
LETS bypass the real estate people willing to let those houses GO TO auction!

SCREW THIS! LETS get some people into houses!
(with the condition that they buy a second for investment)
Get out of the WAY **** I want that HOUSE!

SOURCE: http://en.wikipedia.org/wiki/Lenders_mortgage_insurance
The annual cost of PMI varies and is expressed in terms of the total loan value in most cases, depending on the loan term, loan type, proportion of the total home value that is financed, the coverage amount, and the frequency of premium payments (monthly, annual, or single). The PMI may be payable up front, or it may be capitalized onto the loan in the case of single premium product. This type of insurance is usually only required if the downpayment is less than 20% of the sales price or appraised value (in other words, if the loan-to-value ratio (LTV) is 80% or more). Once the principal is reduced to 80% of value, the PMI is often no longer required. This can occur via the principal being paid down, via home value appreciation, or both. In the case of lender-paid MI, the term of the policy can vary based upon the type of coverage provide (either primary insurance, or some sort of pool insurance policy). Borrowers typically have no knowledge of any lender-paid MI, in fact most "No MI Required" loans actually have lender-paid MI, which is funded through a higher interest rate that the borrower pays.
Sometimes lenders will require that LMI be paid for a fixed period (for example, 2 or 3 years), even if the principal reaches 80% sooner than that. Legally, there is no obligation to allow the cancellation of MI until the loan has amortized to a 78% LTV ratio (based on the original purchase price). The cancellation request must come from the Servicer of the mortgage to the PMI company who issued the insurance. Often the Servicer will require a new appraisal to determine the LTV. The cost of mortgage insurance varies considerably based on several factors which include: loan amount, LTV, occupancy (primary, second home, investment property), documentation provided at loan origination, and most of all, credit score.
If a borrower has less than the 20% downpayment needed to avoid a mortgage insurance requirement, they might be able to make use of a second mortgage (sometimes referred to as a "piggy-back loan") to make up the difference.[2] Two popular versions of this lending technique are the so-called 80/10/10 and 80/15/5 arrangements. Both involve obtaining a primary mortgage for 80% LTV. An 80/10/10 program uses a 10% LTV second mortgage with a 10% downpayment, and an 80/15/5 program uses a 15% LTV second mortgage with a 5% downpayment. Other combinations of second mortgage and downpayment amounts might also be available. One advantage of using these arrangements is that under United States tax law, mortgage interest payments may be deductible on the borrower's income taxes, whereas mortgage insurance premiums were not until 2007. In some situations, the all-in cost of borrowing may be cheaper using a piggy-back than by going with a single loan that includes borrower-paid or lender-paid MI.
[edit] LMI/PMI tax deduction
Mortgage insurance became tax-deductible in 2007 in the USA.[3] For some homeowners, the new law made it cheaper to get mortgage insurance than to get a 'piggyback' loan. The MI tax deductibility provision passed in 2006 provides for an itemized deduction for the cost of private mortgage insurance for homeowners earning up to $109,000 annually.[3]
The original law was extended in 2007 to provide for a three-year deduction, effective for mortgage contracts issued after December 31, 2006 and before January 1, 2010. It does not apply to mortgage insurance contracts that were in existence prior to passage of the legislation.[3]

It is good to know there are some great tax advantages to owning a second home. A lot Europeans and Russians own second homes in Dubai, UAE, and Americans are just starting to take notice of this modern metropolis. Dubai provides a beach- front tourist destination with over 6 million visitors a year. My company provides the <a href="http://www.DubaiMarketGuide.com">Dubai Real Estate Market Guide</a> for anyone interested in the real estate opportunities in Dubai. I wonder, though, if the tax deductions still apply if the second home is located internationally?

Jon with DubaiMarketGuide.com

@ "about to erase..."

The bond programs that help homebuyers still have qualifying guidelines. You usually have to have a certain target income level and be eligible for either FHA or Conventional financing.

What the majority of them do is take a "silent 2nd lien" which is forgivable once you have adhered to those guidelines for the time period specified. They often require you to occupy the property for a period of 3-5 years and not own any other real estate. If anyone knows of other stipulations, please comment.

Brett

@member1789924

Jon,

It does not matter where the second home is located. In fact, it could be floating in international waters and still count as long as the other criteria are met.

Brett Carman