(Closed) Want to buy a house but not much saved. Advice please!

posted 3 years ago in Home
Post # 2
Member
1705 posts
Bumble bee

If you’re struggling, I wouldn’t recommend a condo – they typically have monthly condo fees on top of your mortgage, and they can change the amount at any time. It’s never changed to less….

 

Post # 3
Member
237 posts
Helper bee
  • Wedding: May 2015

It depends on which state you live in, but a ton of states have first time home buyers incentives (you don’t have to have 20% – there are strings attached to this- some states have tax credits and a bunch of other stuff).  I would honestly just go talk to a bank or company that you might take a loan from and see if it’s even possible right now.

ETA: I also don’t recommend buying a condo.  The builder of a family members condo didn’t follow code, so each ‘household’ has to put out 100,000 in order for the building to come up to code… And it’s a new property.

Post # 4
Member
2318 posts
Buzzing bee

When i first looked into buying a home when I was 24 with no money down, I was rejected because of my credit score despite my ability to pay.  I would suggest making sure your credit score is above a 700, the higher the better. 

Post # 5
Member
6787 posts
Busy Beekeeper

I wouldn’t buy a house or condo until you have saved for both a down payment and have some savings set aside. Without at least 20% down you’ll be paying PMI plus homeowner’s insurance, property taxes and any HOA/COM fees on top of your mortgage payment. 

When you are renting and your dishwasher/hot water heater/ furnace dies or your roof leaks you call your landlord. When you are a homeowner it’s on you. These surprises can cost thousands and thousands of dollars and put a great deal of stress and pressure on your relationship. It’s not worth it if you aren’t prepared to handle it. 

Post # 6
Member
1352 posts
Bumble bee
  • Wedding: July 2017 - The Lodge at Little Seneca Creek

How much do you have saved right now? I bought a condo with about $15k (5% down payment, paying off the PMI, and closing costs). I lucked out and was able to find a nice, affordable condo for $160k in a really wealthy area. I pay about the same amount per month that I did for my old apartment (about $1260, including the $297 condo association fees). Condo fees have only gone up a couple of bucks a year (unlike apartments often going up $100+ each year). Fiance lives with me now, and it’s a perfect amount of space for the two of us and our cat.

Post # 8
Member
8162 posts
Bumble Beekeeper

mrsdrake :  what have you done to save so far? Owning is often more expensive once you account for maintenance and repairs so if you are struggling to save now owning will be stressful

Post # 10
Member
2019 posts
Buzzing bee

mrsdrake :  just FYI- some condos mandate only certain contractors can work on parts of the property. You will still be on the line for things like your washing machine breaking, a leak causing you to replace lots of flooring (assuming your dad/uncle would ask you to pay for materials, just not labor), home owners insurance, etc. 

it is more costly to own versus rent, even if the mortgage equals rent. 

Post # 11
Member
8162 posts
Bumble Beekeeper

mrsdrake :  how much will you be able to save in that year? Do you follow a budget? Have you analyzed your spending to see where you might be able to make some cuts to help you save more? I personally like Personal Capital for tracking expenses but it works best for credit/debit users instead of cash (we use reward credit cards for everything and pay in full each month). I would still make sure you are able to save for emergencies – even with helpful family you may find you need to pay for materials unless you really know they will pay for a new water heater or roof. 

Post # 12
Member
6787 posts
Busy Beekeeper

mrsdrake :  If you are counting on family for maintenance and repairs don’t buy a condo. Your condo association can decide your building needs a new roof or windows or paving and they hire the contractors and assess all the owners. You typically don’t personally get to choose who does the work on your individual unit. A friend of mine got hit with a $6,000 assessment the year she bought her condo. Surprise! She was able to spread it out over a year or so, but still…

Post # 15
Member
9982 posts
Buzzing Beekeeper
  • Wedding: City, State

We ended up buying a house that was for sale by owner rather than going through a bank or realtor. You would of course need to read up on the process and you would also need to save up closing costs and a down payment.

As for relying on family for repairs, I see what you’re saying as my dad has been doing home remodels for my entire life and owns his own contracting businsss.However, keep in mind there WILL be things your family won’t know how to do/can’t do. For example, we found out we had massive gas leaks in our house after we bought it. My father has many talents but plumbing is not one of them and we had to hire a friend of his to come out and go all the way through our gas lines and find the links and replace the hot water heater. We had to have a brand new HVAC unit put in, a brand new roof, you see where I’m going here. 

ETA: From my understanding, in most places it’s a sellers market right now. Just because your friends spent so much a few years ago home prices have gone WAY up most places. To give you some numbers, I’m in Texas which has a great market and reasonable COL. Our house was $53k, that’s it! But we still ended up paying around $10k down and I think it was more around $12k. That’s not even counting what went into the aforementioned repairs on the house.

The topic ‘Want to buy a house but not much saved. Advice please!’ is closed to new replies.

Find Amazing Vendors