To buy or to wait

posted 3 years ago in Home
  • poll: Should we rent an apartment, go with my folks offer or buy a home?
    Rent another apartment : (30 votes)
    63 %
    Rent from my parents : (5 votes)
    10 %
    Buy a home : (13 votes)
    27 %
  • Post # 3
    Member
    3344 posts
    Sugar bee
    • Wedding: April 2013 - Rhode Island

    This is where you lost me: “They are paying for our wedding so they don’t have money for a down payment.”

    Umm…then how can they get another property?  It sounds like they can’t.  Plus, when does your friend want you out?  Even if your parents had the money now, they probably couldn’t find a place and close on it fast enough for you to move into before your friend kicks you out.

    You said you don’t have a lot of money saved up or a high income, and you don’t know what the future will bring with your FI’s school/job.  It sounds like your situation calls for flexibility, so I think an apartment is the best route to take.

    Post # 4
    Member
    10384 posts
    Sugar Beekeeper
    • Wedding: September 2010

    I seriously doubt they will be able to buy without money down. Since they own multiple properties, it is unlikely they will be eligible for the low down payment programs. I think you guys may need to either rent a place on your own or buy if you think the high cost low down payment loans are worth it.

    Post # 6
    Member
    10384 posts
    Sugar Beekeeper
    • Wedding: September 2010

    @MrsM914:  When you buy, you also need 3-6% for closing costs and usually 6 months of mortgage payments in an untouched account that the bank verifies in addition to the down payment. You may still be eligible for a conventional with 5% down if you have amazing credit or possibly an FHA (but that loan has a ton more fees).

    Post # 7
    Member
    40 posts
    Newbee
    • Wedding: May 2013

    I would definitely rent something that you can afford, it may not be your dream place or have all the amenities you would like, but based on your description of your current situation and need to get out of your current condo, you may not have much room to be super picky. 

     

    There are lots of ways to make a rental feel home-y, and you may need to get creative with space and storage options, but renting will give you optimal flexibility – both financially and with moving options when FI graduates. FYI we have a $100,000 mortgage on our rental property, and we put 25% down…. Our payments are around $630/month but that does not include homeowners insurance or taxes…. So even with a $100,000 budget, you will be settling on a home, and you may have higher payments then youre shooting for. We also got a really good interest rate… Just my 2 cents!

     

    Post # 10
    Member
    2466 posts
    Buzzing bee
    • Wedding: October 2012

    Your situation is similar to our situation in some ways.  We’re renting an apartment now but they just upped by $200-ish lol.  They’re nuts.  Anyways, we’re in talks to rent from my husband’s parents who are buying a new house closer to his dad’s work.  They want to hold onto the current house and us renting would obviously make things easier…..but stuff is still kinda up in the air with the new house.  Stuff keeps getting pushed back so we’re not 100% positive it’ll work out.  My suggestion is talk to the parents who you’d be renting from but start looking.  If they don’t have something for you to move into immediately I think your best bet is to rent from an apartment complex or something.  May be crowded but crowded is better than homeless and I’m sorry you’re in this situation =( not knowing where you’re going to live sucks.  Just wanted to let you know you’re not alone in the ‘where the heck do I go next’ stage of life lol!

    Post # 11
    Member
    3570 posts
    Sugar bee
    • Wedding: September 2011

    I would just rent another apartment or condo.

    ETA: if your parents could buy a rental property, which I don’t think they can, you would not be able to get into it for a few months anyway.  DH and I bought a condo in May, but wouldn’t be moving in until 9/1.  It’s a long process.

    Post # 12
    Member
    2115 posts
    Buzzing bee
    • Wedding: October 2013

    None of the above: look for a private owner renting out something they already own… townhouse for rent maybe?

    Post # 13
    Member
    994 posts
    Busy bee
    • Wedding: June 2012

    @MrsM914:  Be very careful assuming you qualify for an FHA. DH and I fully qualified for FHA, but the house we are buying did not..guess why..the landscaping in the front yard..

     

     

     

    I’m not kidding and we were in a big time crunch to close so we had to go conventional. 

     

     

     

    Unless your willing to fix up a property before you actually own it, don’t assume FHA will be your path just bc you qualify. Just a word of caution we’re closing in a few days so I know how frustrating it can be and we had no idea that could happen so I just wanted to warn you if you go the buy route, which is what I voted for…be aware FHA may or may not work for you. 

     

     

     

    Good luck

     

     

     

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