Home Ownership Technique
This “Home Ownership Tech.” is a revision of my original 4 page document of 1983. Both the old version and especially this new one can pass as Gospel notes, because they are “good news” to anyone who is tired of paying rent. And I care about the well–being of my readers & want to share a valuable & practical method of owning their own home outright in about 10 years or so. (The original was a system to have the house paid for in 7 years which worked quite well but was more “cave man” & labor intense.)
Most folks expect to pay substantial rent, or even higher mortgage payments to secure decent housing. This H.O.T. offers a practical plan to beat the system. The last 40 years or so have produced lots of motor homes which now are usable but not as pretty. They are also selling at 5% or less of original cost. (We recently bought a 27' MH for $160, which had low miles but fixable rodent damage.) This H.O.T. uses an old motor home (or camp trailer) for 2 years to save rent money. If one can find a cheap place to park the coach, it’s much easier to save money. Maybe a friend or relative’s back yard? Gypsy style living is not impressive, but it is a necessary part of the plan. Saving a thousand $ or more a month is doable for couples who work. That amount in 2 years is $24,000. More determination equals more saved . . .
Now HUD constantly acquires new listings which are usually re-possessed homes from various sad circumstances of previous buyers. These homes are all sizes, and in all sections of town/city. Some need work, and some are in pretty good shape. They sell for 70 - 80% of market value to the top bidder. With a 20 – 30K down payment, and a full or 1% over list price, the bidder has a good chance of buying the house. And FHA offers subsidized interest rates. A few tips:
-- Know which realtor in your town/city specializes in HUD, and get the local/regional details.
-- Become pre-qualified w/FHA & HUD so there are minimum delays when you are ready to bid.
-- Keep track of all new listings as they are posted frequently.
-- The more cash down payment, the lower the monthly payment will be, $500. – 600. A month on a 15 year note is feasible for a nice home. AND paying an extra $200. Each month on the principle would shorten the payoff dramatically. 10 years is also feasible. (Of course, dealing with HUD may not work in all states, due to red tape & lending policies.)
Our personal experience 35 years ago with the H.O.T. involved buying mobile homes & restoring them for resale profit. We did a few, each bigger & more valuable. Then we cashed out of trailers & bought a regular house which was trashed by years of careless tenants. That "caveman" system was very profitable & we never had a regular mortgage. TODAY I'd have a decent $ saved & look for an older house that needed a cosmetic tune-up. And there are property owners that will carry the balance after a decent down. This system will have less red tape & may even offer a better price discount than HUD.
So let’s apply the H.O.T. to a higher level endeavor. Is there a technique to owning a "home" in the sky? Most folks want to have “security” in the next life but how do we attain it? As with a home in this world, a secure and decent place in the “sky” does not come automatically. We need a “technique.” I believe God’s plan of salvation is the only safe one:
A -- ADMIT “All have sinned and fall short of the glory of God,” Romans 3:23
B -- BELIEVE “Believe in the Lord Jesus, and you will be saved,” Acts 16:31
C -- CONNECT “Where two or three are gathered in my name, there am I in their midst” Matthew 18:20 We should be involved in a Christian church to show God we mean business.
See also link 9 “Serving God”. Choose Jesus, He is Alive.
Other interesting titles: www.gospelnotes.net -- index of series is link 1 * * F. J. Stone * *