buying a house at 19, opinions?

[zinfamous]

This:

Originally posted by: zerocool84
You want to buy a house with your gf and you're 19.........yea that relationship won't last long and you're ganna get screwed. Happy trails!!!

is directly related to this:

Originally posted by: ed21x
being bogged down with a house for the next 10+ years isn't something i would want to risk at 19.

 

[Baked]

Dooo it! I wanna see you fail and post about it on ATOT.

 

[zinfamous]

Originally posted by: Koharski
I already have 2 bongs I don't need anymore.

LOL
:beer:

Especially since I rarely smoke pot since highschool. Drinking age is 19 in canada no need for a fake id!

[/quote]



wait...you mean like, since less than a year?

 

[Koharski]

I graduated at 16, put up a grade + extra credit courses ftw

thanks for the reality check guys, you're right I most certainly couldn't get the loan.

and I lied I smoke pot every day.

 

[AccruedExpenditure]

Do not buy house w/ girlfriend. Buy house on your own. Allow girlfriend to pay you rent but make sure its known its your house. Period. Dot. End.

 

[imported_Imp]

Originally posted by: Xanis

Originally posted by: Koharski
Thanks for the tips guys, although I don't think being in a relationship is an excuse to can the whole idea i've definately got some more stuff to think on.

I've rented in this town since I was 16, and believe me rent is expensive here. The cheapest i've ever had for a room was 375$ a month canadian, that didn't include utilities and I only got the rate because the renter was a good friend of my dad. I've looked through the classified ads in the paper and in the last 4 months there have been 3 rooms go up for rent on the same street all between 450-600$ (although the rooms on the higher end were fully furnished and brand new homes).

anyway I think you are right about not being eligible for the loan i'm probably screwed on this front anyway.

the city is nelson, bc by the way

LOLWUT

$375 CAD (~$302 USD) is CHEAP. Do you know what the average rent is around CC Philadelphia for a very small, very shitty, studio apartment? Roughly $500-600 USD per month, not including utilities. I moved a good distance south of CC, I'm splitting rent with a roommate, and rent is $700/month per person, utilities included.

Come to Toron'a in Canada. About $900 gets you a horseshit basement you enter through a 2 feet wide alley.

Ya, 19 and no legal contract with significant other is nono. You can get married at that age, but the divorce will only break you heart, not your check book for the next 10 years.

 

[rudder]

Do you have enough money to pay for the house without renters? Or do you have cash available to buy a water heater and get it installed if it breaks?

 

[speg]

Sounds like a good idea. Only think I would do differently is rent out the basement as well and not live there at all. More income for you, you won't have to live in a small area with your GF (not that it'd be a bad thing - but you're only 19...)

 

[destrekor]

Originally posted by: joesmoke

Originally posted by: ja1484

"100% financing" is a euphemism for "buying shit with money I don't have" which is a euphemism for "going into debt" which is a euphemism for "everything that made this country go economically wrong since the Reagan administration", which is a euphemism for "Lesbian, mollusk-fetish, scat porno".

:Q

sweet jesus I've been looking at 100% financing all wrong! I now have far more appreciation for the fine art of 100% financing.

 

[ric0chet06]

delete the GF since there's a 99% chance that you're going to break up, then think about it

 

[xanis]

Originally posted by: ric0chet06
delete the GF since there's a 99% chance that you're going to break up, then think about it

"Delete" the girlfriend? :laugh:

 

[SagaLore]

Originally posted by: Koharski
cliffs:

I am 19, I want to purchase a house on 100% financing from my girlfriends grandmother. The house is directly across from the college, I have 4 rooms I can rent out for 500$ a month each. Renters are pretty much garunteed for 10 months out of the year.

Don't co-sign. If something happens to the house, or you, the grandma will become financially responsible, and she could lose everything. If you broke up with you girlfriend at some point, you'd still have to deal with her because of the house.

You need to inquire at a bank/lender and see if you qualify for a house on your own. There are a lot of good FHA loans available right now. If you can get the house on your own, then do it - but - I don't recommend anything big. The smaller the better. Taking care of a house is a LOT of work. Depending on where you live, I'd even recommend a condo rather than a house, to cut down on maintenance.

 

[SagaLore]

Originally posted by: SSSnail
I stopped reading after "My girlfriend and I..."

You should have kept going, there is a "her grandma" part too.

 

[Born2bwire]

Originally posted by: beat mania
You should get someone from YOUR side of the family to cosign. A smaller chance of getting screwed.

Anyway, good job for at least trying to invest your money at 19 instead of blowing it on booze/drugs/girls/xbox.

It doesn't seem like he's investing any money in this at all. He's getting 100% financing, he's putting no money into this. If he wants to invest he can start simple, like getting a money market account, CD's, something that would be commensurate with his low income.

 

[dyn2nvu]

What's your FICO score?

 

[Cdubneeddeal]

I would say it's a good idea. Would be a good investment since you're so young. However, I'd be concerned about banking on the hope that you'll always have renters.

 

[zerocool84]

Originally posted by: dyn2nvu
What's your FICO score?

He's only 19 and only source of credit is a card he's had for about a year. He wouldn't even get approved if he tried.

I really hope he does do this though and posts about how he screwed up after it all goes downhill.

 

[wiredspider]

Is this some kinda joke? grandma must already be senile to agree to cosign...

 

[Muadib]

Originally posted by: arkcom

My plan was to buy the house, rent out the 4 bedrooms upstairs and share the small suite with my girlfriend. 4 bedrooms at 500$ a pop is 2 grand a month.

Ok, but is this legal for the house? If it isn't, then you can't count it as income when you go for the mortgage.

Why wouldn't it be legal? Bigger problem is that rent that you WILL be making on a house doesn't count for anything. The only way to work that out is have g'ma loan the money and refinance in a year or two.

Which brings me to my next point, why not buy this on a land contract or lease with option to buy. Both will give you an out if things go south with the GF.

What I meant by not legal, is that the house sounds like it's a one family. If that's the case, then technically he's not supposed to be renting it out, so the bank won't count any rental money as income. You repeated that fact, but didn't give a reason as to why.

 

[alkemyst]

Originally posted by: ja1484

Originally posted by: alkemyst

Originally posted by: ja1484

"100% financing" is a euphemism for "buying shit with money I don't have" which is a euphemism for "going into debt" which is a euphemism for "everything that made this country go economically wrong since the Reagan administration".

100% financing was fine for those that intended to pay their bills. The problem was giving 100% financing to those with low to less than 600 scores and also doing such loans entering a rapidly declining market.

Details...

Not sure what you are looking for. Not everyone given 100% or even the 103% financing has defaulted. When it was offered if you did have a substantial downpayment, the stock market was paying A LOT more than the interest costs on average.

However, they gave these loans based on NINA, NISA, SINA, SISA (No, Stated,Income,Assets) to people that were W2 income and simple checking/savings account types. These types of loans were designed for those whose lives pretty much demonstrate their ability to repay a debt.

They created people putting in apps like the 24 year old dude we got that claimed he made about $10k per month at applebees. We told him we needed W2's and he got his loan elsewhere.

Now those with no juice into the home and now looking at a home worth up to 70% less than what they paid are asking themselves some pretty serious ethics questions.

Do I just walk away or do I hope for a rebound? Many had no intentions on living in these homes, they just wanted the flip. If they had 20% of their own money in it they may not do so. I personally think 3-5% will not keep a people from walking, but I don't think we are going to be in this situation again for at least another 15 years.

 

[Chryso]

It sounds good to me. You really have nothing to lose. A worst case scenario is that if you break up with your girlfriend you will have lived rent free for the time up until then.