(Closed) Have you recently bought a home with no down payment?

posted 7 years ago in Home
Post # 32
Member
1285 posts
Bumble bee

Would be wise to put a down payment on a house. You want that PMI to go down as quickly as you can.  Plus, you need money for closing costs (sometimes, depends on the situation and if the seller will pay for the closing costs)and all those other fees involved in closing, home inspections, radon testing…etc.  Takes money to buy a house.  

But after buying several homes and buying homes just to flip (cash for those), it’s good to put down a good amount for a down payment.  

Post # 33
Member
4304 posts
Honey bee
  • Wedding: November 1999

View original reply
@Jess1483  That is comforting, because I held a job for 10 years, and then went back to grad school.  I was worried about my job history although I am doing an internship and hope to be working through my last semester.  I understand wanting to look at bank statements, but some were saying they were going back years and I was like :O GEEZ.  I heard the inspections were rough, but that is also a VA thing.  Overall, I am excited that I get to use it.  Because between moving across the country, helping our families, grad school + me not working, we have not saved the kind of money we wanted for a downpayment.  So, thanks for the comforting info 🙂

Post # 34
Member
1470 posts
Bumble bee
  • Wedding: August 2011

View original reply
@deetroitwhat  I went and read some of the comments, and it’s actually good to read, because if you do run into some issues, if you comment there, they seem to get on top of it! So there’s that 😉

Post # 35
Member
7309 posts
Busy Beekeeper
  • Wedding: October 2011 - Bed & Breakfast

@Jbunny  

I think there is a difference between using a government program because it’s available and needing a government program just to make the deal work. If you have a comfortable amount chilling in the bank (your down payment + your closing costs + 6 months worth of all living expenses) and you choose to take advantage of an assistance program, then go for it. But if you cannot afford to buy a house without that assistance program, then you are not financially ready for the risks and responsibilities that come with being a homeowner. Only you know which category you fall into.

I will say that in our first year of home ownership we dealth with a burst pipe at 11pm on a Friday, needed an emergency locksmith after we accidentally locked ourselves out, replaced a water heater, and replaced an HVAC system. These were all absolutely necessary, could not be avoided expenses to the tune of $8500. And that number does not include all of the things one may want in a house like new paint, carpets, furniture, lamps, etc. It all adds up very quickly. A smart homeowner is one who always maintains a very healthy emergency fund, and is in the habit of saving and planning for whatever may be on the horizon. The act of saving for a downpayment is very good practice for all of the saving and planning you will have to do as a home owner. I know it takes a lot of patience sometimes, but it is worth it.

Post # 36
Member
4304 posts
Honey bee
  • Wedding: November 1999

View original reply
@lovekiss  That is a vastly close-minded statement. Assistance exists for a reason. Not ever person who doesn’t have fat stacks sitting in the bank is too irresponsible for homeownership. 

Post # 39
Member
4846 posts
Honey bee
  • Wedding: August 2013

That’s not even legal here. Also here you must put your DP on yourself, it can’t be from a loan or paid by someone else. You have to prove you have the income to pay it off. 

 

Post # 41
Member
7309 posts
Busy Beekeeper
  • Wedding: October 2011 - Bed & Breakfast

View original reply
@Jbunny  It is not close-minded in the least bit. If someone cannot manage to save for a down payment, how will that same person manage to save for a new hot water heater, new roof, burst pipe emergency, increase in property taxes and fees, etc.? I’ll give you a hint…. they won’t. Not because they are “bad” people or anything. it’s because they either do not have the necessary income or the necessary financial skills (or both) to be a saver.

I’ve seen people use 0 down loans because they NEEDED one to close the deal. These same people were SOL when it came time to tackle major upkeep and ended up going into even more debt to handle those projects (or the projects did not get done and their beloved homes fell into serious disrepair). I’ve also seen people who choose a 0 down loan even though they could afford a 3.5-5% (or more) down payment. They chose it because it was the right loan for them, and since they were already in the habit of saving they were able to comfortably handle major repairs. I am not saying that one group of people are somehow morally or intellectually superior to the other. But I am saying that one group constantly lives on the brink of financial disaster (which has caught up with a few of them already) and the other group can rest easily because they have the financial cushion necessary to handle the bumps and bruises of life. I would strongly advise people not to live on the brink of financial disaster. It’s not a good quality of life, and it really makes no sense to choose that life simply because of a desire to own a home.

View original reply
@Jbunny  We are not discussing social welfare here. If you NEED food, then please, by all means, use social welfare to obtain food. Goodness knows that when I was 18 and a single parent, I NEEDED social welfare to pay for childcare so that I could work and put myself through college. Not having a degree or a job simply was not an option. But no one NEEDS to own a home. Home ownership is a choice.  And when you (general, not personal use of this term) can choose to rent or own, then it is incumbent upon you to choose wisely and not get in over your head.

Practicing long term discipline to save for a down payment is very good because it gets you in the habit of saving as much as possible, and that is a habit that is essential when you take on the financial risks associated with home ownership. I know how much it sucks to be patient. Mr. LK and I had been saving for more than a decade before buying our current home. From the time Teen LK was born until now, I went from working minimum wage to earning more that 100k a year. I worked for it, I used public assistance for daycare to make myself better and give DS and I a future, I saved, and now I’ve achieved my goal. It is possible, but it doesn’t happen quickly. And even with achieving that goal, we still limited our search to homes that we could afford on only 1 of our salaries, just to be safe in case we ever encountered a job loss. Limiting ourselves to that price meant that we were in the market looking for 18 months. We had the darn money, and we STILL had to be patient because we live in such a HCOL area. I’m not saying the savings game is fun, but I am saying that it is necessary.

The topic ‘Have you recently bought a home with no down payment?’ is closed to new replies.

Find Amazing Vendors