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When you bought your 1st house....

How much money did you put down?
Any tips for someone who is starting to think about buying their first home?

-Ive posted before. but me & dh are 27yo. with 1 DD we have always lived with my mom (she wants us here-long story!) but I cannot take it anymore & its getting to me & I want out ASAP! We are saving, but its happening realllllllyyyy slowly. I feel like it will take us 5 years to save up a good $10-20k DP... So what is something decent? what should we be looking at saving wise?...
Its a very scary thought- especially since i dont have my families (emotional) support. and cant turn to them for LEGIT advice . Just speaking of moving out makes everyone look at us negatively for "leaving" my mom! :(
-We really are not wanting to get into rentals. Why rent when we can buy. (In tx renting & mortgage can be about the same price. or better)

 
Anonymous

Asked by Anonymous at 10:14 PM on Mar. 9, 2011 in Money & Work

This question is closed.
Answers (9)
  • Here is one idea that maybe helpful. One option is to pursue what’s called an “Owner Financing” solution. This is way also might work, especially if u have so so credit, or really no credit yet . You may want to look at a Lease-Option with owner financing, as this is the safest bet for both owner and buyer. This is one way you can easily buy house no down this economy. Here are a few examples why ths could be a good solution...
    1. When u r entering in the lease-option agreement with an owner, you are allowed the live in the home as if you actually own it. It’s practically “your home.”

    2. You sign an agreement with the owner of the property in which you rent the home for a period of time (usually a year or two) and as soon as you qualify for a home loan within the agreed time period, you buy the house at the originally negotiated price. You are basically “leasing” the home with an option to “buy” it.
    Michigan-Mom74

    Answer by Michigan-Mom74 at 1:23 AM on Mar. 10, 2011

  • This is actually a great arrangement since the owner overlooks your so so credit and you get a few years to fix it up and prove to the banks you will make a good loan candidate. You get to enjoy the following benefits: No dealing with landlords. You can treat the home as yours, meaning you can make whatever renovations you wish. As the home appreciates in value, you get to “cash in” on that increased equity when you buy the house. This is because you buy the house for the original negotiated price. Since house prices tend to increase with time, your house will likely be worth more than when you first “leased it.” Buy the house at the lowered price and all the equity is yours. You are essentially locking in the tomorrow’s market price today.The biggest advantage here is that you can get this deal signed with bad credit or even no credit. This is what me and my DH had to do, and we just closed, and the house is ours.
    Michigan-Mom74

    Answer by Michigan-Mom74 at 1:28 AM on Mar. 10, 2011

  • you can get an FHA loan if your a first time buyer & only need to put down 3.5%
    pinkcicle709

    Answer by pinkcicle709 at 12:06 AM on Mar. 10, 2011

  • It really depends on your credit and what you are looking to buy. When I got my first house we only paid closing costs which was about $1500. Of course my credit didn't suck then and the housing market was awesome, lenders were giving loans away. Now I would think you would need more to put down, maybe $5000 or so depending on your credit. I am not sure though.
    kmath

    Answer by kmath at 10:17 PM on Mar. 9, 2011

  • IF your credit is spotless - you can get away with 5% otherwise you need 10% or more of the purchase price for a down payment.
    twinsplus2more

    Answer by twinsplus2more at 10:19 PM on Mar. 9, 2011

  • We put down 40%
    rkoloms

    Answer by rkoloms at 5:52 AM on Mar. 10, 2011

  • We bought our first house long before the housing market crashed. We were only 20 years old and the house we bought was a $95,000 fixer. We put down 3% and the city paid in 2% for a first time buyer program to bring people into the city.
    JulieJacobKyle

    Answer by JulieJacobKyle at 10:28 PM on Mar. 9, 2011

  • rkoloms-- that is awesome!!!
    Wish we could do that.. but im not living here for another 5-6yrs to save that kind of money.
    Anonymous

    Comment by Anonymous (original poster) at 5:57 PM on Mar. 10, 2011

  • We put down 20% on our first house which was the equivalent of about $21,000. We bought a small ranch because we didn't want high house payments, and with the 20% down we were able to live comfortably and save a lot to put toward our second house 5 years later.
    SherriPie

    Answer by SherriPie at 8:37 PM on Mar. 10, 2011

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