my advice is to not take advice from Vdubchaos lol. he's clueless and stuck in the past.
in theory, if you make $10k/month take home and put 0% down on a house, and your mortgage is $1k/mo ... you can clearly afford it.
again, his advice in regards to "you must put 20% down or you can't afford the house" is stuck in the stoneage and too black/white.
his 20% argument is stupid too in saying that you will always have that money.
people who bought houses for $500k with $100k down and $400k in mortgage, that ended up having to sell them for $200k after the bubble burst were still upside down on their houses after.
Right, but you still need an affiliation (VA, many Military credit unions or lenders, private credit union, FHA, etc) to back you. These are the few exceptions.
Regular Joe without an affiliation has few choices besides PMI.
Lender paid PMI is the same as PMI; it's just in the form of a higher interest rate.
The lenders pays it for you. It might be a better deal if you don't plan on keeping the loan a long time.
nope. they are just an amazing credit union. the interest rates were the same as any other banks at the time we bought our house.
true about having some kind of affiliation though. but it's still not a "special" loan. it's the traditional loan just with no pmi. it's not caked in anywhere.
And one can also save 20% in NO Time if they make that much money and are financially responsble with it.
There is a GOOD reason 20% down was a RULE before our government deregulated.........which lead to collapse.......
Remember, at the front line of all of that was DEREGULATION and enabling banks to do whatever. Without deregulation, none of the housing crisis would've ever happened.
Now that I think about it. We all know military is struggling to get people into service so they are targeting minorities....and we already know military is now filled with minorities as well.
So it would make sense they would give them subprime loans.....
And some people like you are actually convinced that it's ok too.
The funnies part is that you don't even know.
:biggrin:
It's special alright, as special as you.
the "funnies" part is you are on my nuts hard on these forum.
the truth of the matter is you have absolutely no clue about any of it and don't know the terms of the loan that i have (or any other that navy fed gives out) yet you continue to talk as you do.
the only thing that is clear from your post history is that you don't make much money nor ever have, so you don't even have experience with a lot of disposable income, so you really don't know what it is like to be able to do things "outside the box" (such as buying a home with less than 20% down). you choose to live frugal as hell and penny pinch and talk yourself into feeling good about it, which is fine. but not everyone wants to live like a homeless person like you do.
we all know you make up excuses as to why you live like the croods. if it makes you feel better about yourself, then more power to you.
you clearly don't have a clue what "being able to afford something" means.
Well young grasshopper, now that all the financial sorts have got their fap on, I would remind you of the "Real" in real estate. The vast majority of problems, opportunities and, options come from what you can see, touch and, change in home ownership. You cant live in a financial instrument. If you have any questions regarding those, feel free to ask.
You don't, but if you are saving (not spending), access is a none issue. The money is still there (in equity) and YOURS.
Access to that money will be available after you sell the house anyways. And if you save it up front, well, when you sell the house and you are upside down you are blowing those savings anyways. NO DIFFERENCE
Besides, you are already "financially responsible" and saving on regular basis anyways right? To replenish your savings is no big deal.
And let's be real here, any savings you might have will be blown to BS things anyways....furniture...unexpected repairs etc.
That's because you weren't ready to buy a house NOR were you financially responsible and have good financial habits to save for a proper down payment to BEGIN with.
Here we are, 7+ years after the housing economy crashed because people weren't financially responsible, didn't put down enough money and got into shitty loans.....and people are still recommending buying a house with shitty loans and no financial responsibility.
Expected. I didn't expect people to change.
Yes it's HARD to save 20%, yes it's hard to buy a house. IT'S SUPPOSE TO BE. Stop buying into an illusion that everything is easy.....you will have 1 million people selling you that illusion......but time comes where the reality kicks in, and all of those people have already disappeared with YOUR money. While you are ON YOUR OWN.
My advice, keep renting (go cheap) and save till you can just buy. I'm done (own house) bought my house at 48, yea it was a long haul and yes, money wasted, but the houses i looked at in my 20's are not what I want now. And again yes, I could have sold and changed houses later. BUT, my reasoning, all my friends who bought in the 20's all still owe, some have changed etc.. all are living for a house not living.. Not a single one owns the house yet, some have refinanced and got even deeper. I must admit my housing market it going to be much less then yours (and my wages too). If i was making what you do i would have done it in 10 years, not 30.. sad thing is. I won my house and pay way more now then I did when I rented.. yes i own it.. but its quite a change.
It's pretty tough to land a loan without 20% down. The days of drug dealer loans are gone, you have to prove income and they generally want you to have some skin in the game.
80/20 stated income negative amortization loans were a god send for people without the ability to repay them, but the entire edifice was built on insane appreciation and a level of myopic ignorance that we may never see again.
Some folks might still be able to get a zero down loan, but it's certainly not the norm anymore.
Agreed. The bad loans were issued to people who simply couldn't afford them (interest only, etc). Putting down less than 20% has nothing to do with being able to afford a loan.
We had no problems with a few lenders offering what we wanted with 5-10% down.
Agreed. The bad loans were issued to people who simply couldn't afford them (interest only, etc). Putting down less than 20% has nothing to do with being able to afford a loan.
20% puts the bank in a low risk position.
Congratulations.
Surprised to hear you went FHA with the PMI. Did you run the numbers to see what the cost impact will be after about 5 years?
Nice with the low down payment. I put 40% down and paid my own closing costs. Did get the loan at 3.75% and plan on paying the whole thing off in 15 years instead of the agreed 30.
My closing wasn't nearly as painful as I thought it was going to be. Was an extremely smooth process and my lawyer explained everything in a clear concise manner. Only cost me $400 for him.