(Closed) you’re approved….ummm what?

posted 10 years ago in Home
Post # 32
Member
53 posts
Worker bee
  • Wedding: January 2011

If you are getting an FHA loan they will look at your student loans and factor that into your debt to income ratio if your deferrment is coming to an end.  I don’t start paying on mine for almost 2 years and they’re factore in to my debt to income ratio now.

Post # 33
Member
146 posts
Blushing bee
  • Wedding: August 2010

We just got approved for our mortgage this month through the State Credit Union.  It is 100% of the price of the home and has a few more perks, including an excellent interest rate.  We had a small down payment ready to put down (about 2%) but the bank actually recommended that we keep it in savings in case something came up at closing to inflate closing costs, or some other emergency.  I have student loans, but we both have great credit.  And we don’t have to have PMI since it is through the credit union.  

Our mortgage will end up being $20 more than our rent for our townhouse, and we were approved for a lot more than we are comfortable paying. 

Post # 34
Member
146 posts
Blushing bee
  • Wedding: August 2010

Oops- I forgot to add- I just graduated in May and have been employed with my job since graduation (9 months) and he recently switched jobs last July.  That didn’t affect our loan at all since we had both been with previous jobs for a least 3 years. 

Post # 35
Member
3871 posts
Honey bee
  • Wedding: November 1999

I’m definitely not in that boat. We have student loans, other debt and don’t have much in our savings.  That’s why we can’t afford to look or buy a home at this point. I would like to pay down our debt and have at least 10K in the bank plus  have at least 3% for the down payment. (I would prefer to put 10% down.)

Oh, and I’m in Seattle where it’s pretty pricey right now to own a home.  Yeah, I don’t mind renting an apartment for now… maybe upgrade to renting a home for the next couple years.

Post # 36
Member
4544 posts
Honey bee
  • Wedding: September 2010

View original reply
@snuggielove: We watched House Hunters, My first home last night and were shocked to see a couple put 0% down on a $439K condo that had bugs in it and was smaller than our apartment (I think the total square footage was like 1100 feet!) Yet, their mortage payment was 3x what we pay for our apartment/could get a nice house for here! Crazy!

Post # 37
Member
2423 posts
Buzzing bee
  • Wedding: October 2010

Something worth mentioning about Mortgage insurance…yes, you usually are required to pay it if you don’t have 20% down, but you are only required to pay it until your equity reaches 20%. So, for a lot of people, paying $50-100 per month for a number of years is still more financially feasible than saving $40,000 (20% of of a $200,000 house).

I know of only 2 people who came up with a 20% down payment on their own (not gifted, not from the sale of a previous house). Both people lived at home until they were 25 and socked away all their money, and then were able to write checks for $25,000+. That is great if you are able to do that, but for most people, even with a good salary regular bills preclude you from being able to save tens, or in some cases 100s of thousands of dollars.

Post # 38
Member
687 posts
Busy bee
  • Wedding: December 1969

There are also first-time homebuyer programs in many areas that help people clean up their credit and buy homes.

For us, it would be much cheaper to buy than to rent. The rent our city is double my dad’s mortgage, so we are considering that and trying to find a way to make it work.

Post # 39
Member
3761 posts
Honey bee
  • Wedding: May 2010

I’m just jumping in to share our story.

I bought our house last year.  We paid under $200 for a 3 bedroom 2,000 sq ft house built in 1985. 

When I applied, I qualified for a conventional loan with only 10% down.  I had to prove that less than half of my down payment came as a gift.   My fiance at the time gave me about 4% of that.  I also had to prove that although I had only worked full time for about 1.5 years, I had been in the same line of work for a total of three years or more.  Luckily I had a part time job when I was a student that qualified (it was in an office, not just flipping burgers or something). 

So I did qualify but it was close.  We did not want to take my husbands income into account because he is self employed. 

It can be done.  We lived with my IL’s for about 6 months to save on rent in order to save the money we needed.  We qualified for the first time home buyer tax credit so that gave us $8k to use for repairs and stuff. 

Post # 40
Member
661 posts
Busy bee
  • Wedding: June 2010 - The Mountain Terrace, Woodside, CA

I love hearing everyone’s different stories and advice! Please keep them coming, because we’ve only just started researching how to buy a home.

But just like watching HGTV, you guys are making me sad….where we live, a 2,000 square foot 3 bedroom house in the suburbs goes for over $1 million (the house we currently rent would go for $1.2m-1.3m). And our rent is over $2500 a month.

Sad face. 20% down by the time I’m 40 maybe? Or we just need to move to one of the awesome housing markets you guys are buying in!

ETA: just like some of you in the pricier markets, the only people our age that we know who own homes or condos have gotten help from their families. So none of them had any advice for us either!

Post # 41
Member
750 posts
Busy bee
  • Wedding: June 2010

We’re going to purchase with an FHA loan. We’d contemplated saving the 20% but with interest rates rising it will actually end up costing us more in the end to wait till we have that much. We’re looking to spend $300K, which will buy us a tiny 3Br/2Ba in southern California. We’ve been saving since August and have $20K saved thus far, without any help from family. Our only debts are our student loans and my husband’s will be deferred for the next three years.

We’re working with a mortgage broker to get pre-approved (should know tomorrow) and we’ll start shopping then. Hopefully we’ll find a decent bank-owned property, short sale, or foreclosure that we can actually afford. We’d love to put 10% down but we wouldn’t be able to do that for another three or four months, so we may put a little less down.

Neither of us wants to jump in without fully understanding the ins and outs of the FHA loan, but we don’t want to miss out on these low interest rates.

Post # 42
Member
1480 posts
Bumble bee
  • Wedding: December 2010

My parents helped DH and I to get into the housing market. We didn’t ask them for help, and we weren’t even looking to buy a place yet (we’re both recent grads with student loans), but an amazing deal in the perfect location came up and my parents offered to lend us the down payment.

We were required to put 20% down for the apartment, which in Vancouver for a 2 bedroom is $XXX,XXX. It would have taken us years to save up that chunk of change on our own.

I watch those real estate shows like Property Virgins and House Hunters and I don’t know whether to laugh or cry. In some cities, we could own a nice big house for the price of the down payment on our little apartment. Then again, Vancouver is freaking awesome and I love my hometown. Sigh.

Post # 43
Member
1523 posts
Bumble bee
  • Wedding: September 2010

We bought our house in 2009 with an FHA loan. We put 3.5% down and even with our PMI payment each month we are spending almost exactly the same amount that we were on rent. Our loan is a 30 year fixed rate loan (no arms) and the PMI payment will go away when we hit 20% down on our house. 

Our parents did not help us buy our home. 

To qualify for our loan we had to pretty much give two years evidence of our financial records, taxes, student loans, pay from our jobs etc etc… We were approved for a lot of money, but we did not look at houses in that range. We wanted to be very very comfortable in our mortagage and not house poor. 

A few things about FHA loans:

-They are available anywhere in the country…they are government backed, so all 50 states. 

-Minimum down payment for an FHA loan is 3.5%

-It’s not a risky loan because it’s a 30 year mortgage with a fixed rate. The only time your mortgage amount will change is when your home insurance or taxes rise.

We love owning a home, but it’s a financial commitment every day of the year. We have a bill account and we automatically put more money than we need for bills in it every month to build up a nest egg. 

There is no landlord to run to when something goes wrong. Even when nothing is wrong there are things to be done in the house and in the yard…always!

We live in Ohio and our furnace died in December. It was 15 degrees outside. We lived without heat for 3 days and then had a new furnace and duct work put in the house…total cost $5,000! All I can tell you is that you find a way to make things work. For the furnace, the heating company offered us 6 months no interest financing and we got a $1500 rebate from the government for putting in an energy efficient system. We have committed to paying off the whole thing will be paid off in 6 months so no problem.

Post # 44
Member
26 posts
Newbee
  • Wedding: May 2011

So there’s hope for me yet.  When my Fiance graduates I’ll be going right in to school.  It seems like I’ll always be “wasting” money on rent trying to save up for a 20% down payment.  I could do 3.5% now so that makes me feel so much better than I won’t absolutely have to save up 20%.

Post # 45
Member
592 posts
Busy bee
  • Wedding: September 2013

What’s FHA?  I’m from Canada, so not too familiar with this typer of loan.

In Toronto, the pricing of houses are ridiculously $$$.  @bellagio …I can’t believe you can get a house for 50K in Arizona!!!  I wish that were the case in our city.

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