My apartment building has been forclosed on and is now bank owned. They are selling the apartments for what seems like pennies in comparison to their original sale price (upper 300Ks). I think it is too good a deal to pass up, but I know nothing about purchasing a property or the costs involved in regards to closing costs, insurance, mortgage rates, etc…so I don’t know if I can afford it. here is what I know:
I make $ 33K/yr before taxes, plus another $ 2-$ 3K in freelance work.
I have a very good credit score (but not excellent).
Price of apartment: $ 130K
The city is helping qualified buyers with a $ 50k loan that is 100% forgivable over time (which means I won’t have to pay it off as long as I don’t sell it for 20 years). This means I only have to borrow about $ 80K from the bank, so my mortgage payment should be based on this loan amount.
Finally, homeowner’s association costs are about $ 300/month.
My question is: What can I expect my monthly payment to be for mortgage, insurance, taxes and HOA fees combined?
Should I do this???
P.S. The building itself is only 2 yrs old and in excellent condition. I’ve been living there for 1 1/2 years with no problems. Again, the mortgage loan itself would be for about $ 80K. Oh, and they are throwing in tile throughout the apartment included in the purchase price, so I feel like it’s a really good deal I just want to know how much I should expect to pay per month…