In addition to the whole “going back to school” fun that I’m going to be starting in January… we’re also selling our house. Yup. We’re crazy people. To make a very long story short(er), there is a USDA loan program out there for families with “low” incomes. Right now, we’re way over the income limit, BUT when I go back to school full-time, we will qualify for it. Basically, this is a 100% financing loan with much lower payments that will be far more affordable for us when I’m in school and money is tight. The caveat with this loan is that your home has to be in a “rural” area. Lucky for us, five minutes down the road is considered to be rural, so we’d have lots of options for new homes in our area. There are lots of conditions and things involved, but that’s the general idea. I called the local USDA office to make sure we’d qualify once I’m back in school and we sell this house, and we will, so that means our house is going up on the market within the month.
We wanted to give it a while to sell since this market is awful abysmal less than favorable. We’ll be able to apply for the loan in January IF our house has sold by then. The tricky part is that since we bought our house with 100% financing and have refinanced twice, we have nearly nothing in equity. Which means unless we sell it for what we bought it for (highly doubtful) we’ll be in the hole. Which means we’ll have house debt to repay… which means we’re totally living with our parents for a few months after we sell to recoup whatever we lose. Yeah, not looking forward to it. Having our own space is not something I take for granted! BUT we know it’s the most responsible thing to do and that it’ll only be temporary.
We have so many little house projects to do before we can list, which we’re trying to get done in May since it’s house-buying season right now. Lots of painting, little repairs, prettying up, but we’re not going overboard since we’ll be essentially throwing whatever money we spend into black hole from which there’s no return. Our house is already way more updated than all of the others for sale in our neighborhood, but the selling prices are so low that it brings down the value of our house, regardless. That’s what’s so frustrating!
We’re hoping and praying that we have some good luck since things are still selling in our area in our price range. Oh, and to add another element of fun to this whole thing, we’re doing “For Sale By Owner.” I’m not super scared, since I have my real estate license, and we’re paying to put it up on the MLS and will still offer a 3% commission to the buyer’s agent. If we don’t have any luck in a couple months, we’ll hire an agent.
I’m dreading this whole process, especially with two little kids aka messer-uppers in the house, but I know that it’s going to be worth it in the long run to be in a house with lower payments and a better layout. Gosh, I hope this works! I’ll keep you guys updated on our progress/ process.