Can we buy this house?

Question

My husband and I are looking into a house that we want to buy. My husband has the only income right now because I am a full time student. We have hardly any debt, good credit and we have co-borrowers. We qualify for first time home buyers. The problem is we have two kids and bills so we have absolutely NO money to put down. We love the house we want to buy and it is selling at 99,000. We can only afford payments of up to $700 a month. So should we do it or should we just rent until I get my job?

Answer 1

Paying rent is like throwing money away. Buy the house. talk to the mortgage brokers and they will help you out with this one. You may have to offer more then the buyer wants to get a mortgage that will help you with all of the closing costs, points, etc that come into play. DO NOT GET A VARIABLE LOAN make it a fixed loan and try to go for the 15 year option. I know several brokers that could assist you, depending on where your located.
I have set my options to accept e-mail if you want to contact me.

Answer 2

Being a "first time home buyer." I can give you some advice.
First. The way the housing market is today, A down payment
is required, if not read the "fine print" very carefully.
Get a 30 year, fixed rate, with no penalty for paying off early.
When buying a home. Factor in "one weeks" take home pay
only, for your monthly payments on your mortgage. Like you
say, you have other bills to pay.
So. Paying the bills, car payments, grocery's, entertainment.
Hollidays, birthdays, etc. Plus saving for medical expences
not covered by insurance. And remember vacations.
You say, you can only afford $700 a month. The mortgage
lenders will always tell you, you "qualify for more." But that
is what got everybody else in trouble "right now."
So. Stick to your budget, even if you have to find another.
There are plenty to choose from. And don't let them tell you.
You better buy now, they are selling fast, and it will be gone
tommorrow. Just tell them back, and say, "So will I."
And when you do buy a home. Never, Never, Never take out
a home equity loan on the home you have "no equity" in.
If you put money down on a home, when you buy it. All that
money is gone already, because for the first several years.
Your are paying off the interest "first." Then the rest goes to
pay off the "principal." That is another mistake homebuyers
make. I know. My son is now living back with us. <}:-})

Answer 3

Short answer, no ! The reason I say no is simply because your husband is working while you're attending school and the event of a long term illness to your husband, who'll pay the payments while he recovers !

The other reason I'd give is you state that the two of you could only afford around $700 per month ! Well that tells me that anything beyond $700 would be a stretch to cover so be smart, keep renting until you finish school find a job and then only then after you've been in the work place for 2 or more years would I consider buying a house !

Good luck !

Answer 4

A regular 30 year mortgage with a 30 year fixed rate of 7% would get you payments (mortgage only) of $658.55. You will, however, also have to pay PMI since you do not have any money to put down. On one of our mortgages for $120,000.00 PMI was just under $100/month. So figure $758.00 for your monthly payment. Insurance also has to be added to this amount.
Is $700 the most you can afford for your princ and interest or your total monthly payment?
There are things you need to factor in to be able to make a sound decision.
How long before you graduate?
Can you ramp up your savings?
Can you cut your expenses?
If you have less than 2 years to go until graduation I would continue renting, save more and cut your spending.
During the next year or two there will be a glut of homes from which to choose.
SAVE SAVE SAVE!! You really want to avoid paying PMI.
Some great resources are David Bach and the finance section in Yahoo. Find out what your "Latte factor" is and let that info work for you!

Answer 5

I am sorry but the answer is no. Before I answer your question, if you look at the rent to own ratio, it is more in favor of renting than any time since 1950. That means you are not missing anything if you rent for two years.

Do yourself a favor and live the next two years as if you bought the house. Save whatever money you would be spending on the mortgage, taxes, insurance, utilities, renovations, etc. (minus your current rent because you would not be paying rent if you owned). Two years from now you will be able to know with confidence if you can afford "that much" house. In addition, you will have savings which will allow you to not only put money down but decorate it in a fashion you will like.

I know you really want this house but let your bank account tell you the answer in two years instead of me sitting on my couch while watching the Yankees.

Answer 6

You may not qualify for a mortgage at this time. The mortgage requirements has been tightened due to the recent mortgage crisis. Lenders aren't in a position to take the risk. What I suggest is you finish school and find a job. If necessary, ask family to "gift" you money for downpayment when you are ready. You would will still qualify for "first time buyers money", but having some of your own down, is more palatable to a lender than none.

Answer 7

Here is a way you may be able to buy this home, If either of you are prior military try and get a VA loan. This if you are able to get it you wont have to put a down payment on the home. Ask the current homeowners that they pay all closing costs. As stated in several answers above talk with the realitors, they will assist in any questions theat you have and help you on any items you may have a question that you may have good luck

Answer 8

Here is a link for mortgage calculators.

http://www.google.com/search?hl=en&q=mortgage+calculators

My spread sheet indicates that a 30 year mortgage on 100% loan would run around $727 for interest and principal alone. Insurance and taxes would be in addition to that amount.

Lending institutions and banks like to see that all loan payments, whether they are car, appliances, or mortgages, do not exceed 35% to 40% of your monthly income.

Right now it looks like you can't afford the property, but since I don't know your exact situation, I could be incorrect.

Good Luck.

Answer 9

"to construct a house or a lodge, the participant could desire to very own all residences in a coloration team. progression could desire to be uniform for the period of a monopoly, such that a 2d homestead won't be in a position to be geared up on one aspects in a monopoly till the others have one homestead." I have been provided that from Wikipedia. I even have performed this interest when you consider that i replaced right into a sprint youngster, and that i've got performed diverse techniques with diverse people. especially circumstances we performed like your mom is describing. different circumstances we'd purchase regardless of we could locate the money for, yet you won't be in a position to place a 2d homestead on a aspects except all the different residences have one homestead already on it (like Wikipedia says). wish this facilitates.

Answer 10

no ...you need money down now...after the latest sub-prime lending scams.....................mortgage companies are getting very picky about who is buying now