Not saying it's easy, but it's not close to "not reasonably doable". I'm not trying to toot my own horn, because I was able to live with my parents rent free for a while (travelled constantly and was never home). So I know my situation wasn't normal. But I was able to save up for an engagement ring (damn near a year's rent) and 20% down on a decent starter home in two years. I lived like I was still in college. Never spent too much on anything (besides the ring). I had a house by 26.

And to whoever said find out what the bank will lend you and divide by half, you are pretty spot on. They will give you ridiculous amounts of money if you have decent credit. Be very careful with that.

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Posted by GFunk

Denham Springs

Member since Feb 2011

14966 posts

Posted on 4/17/15 at 10:15 am to KG6

quote:
KG6

quote:
And to whoever said find out what the bank will lend you and divide by half, you are pretty spot on. They will give you ridiculous amounts of money if you have decent credit. Be very careful with that.

I wanted to touch on this and point out that it's completely out of touch with today's lending realities. The days of No Income/No Asset (NINA or Ninja) Loans are gone. SISA's (Stated Income/Stated Asset) are much more stringent now as well. You cannot simply obtain an approval letter by having your Tri-Merge pulled anymore.

Any lender worth their salt-broker side or institutional/banker-is going to verify income and at least inquire about assets along with a tri-merge in today's lending climate.

This post was edited on 4/17/15 at 10:16 am

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Posted by BoogaBear

Member since Jul 2013

5561 posts

Posted on 4/17/15 at 10:20 am to GFunk

quote:
GFunk

So much truth.

Our first home we had a reported income of around 40-50k and got approved for 125k and no more.

It doesn't work the way it used to.

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Posted by Jcorye1

Tom Brady = GoAT

Member since Dec 2007

71392 posts

Posted on 4/17/15 at 10:37 am to Tigerfan56

quote:
I don't want to rely on rent obviously, because anything could happen even though we're very serious, but at the same time I also realize in the unlikely event we do suddenly split, it wouldn't be hard to rent out to another friend.

Most people don't think like that.

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Posted by KG6

Member since Aug 2009

10920 posts

Posted on 4/17/15 at 11:40 am to GFunk

I bought a house in December. Total household income of 120k. They were willing to lend me over 500k. And this is in Houston where property taxes add a HUGE portion to your monthly statement with escrow. Also, this approval was WITHOUT me having to sell my previous home. They were going to let me keep a 175k house and buy a 500k+ house.

I don't think it's as relaxed as it used to be (not sure as I wasn't buying houses at that time), but they are still willing to lend money to the point where people can get in trouble.

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Posted by Jabstep

Member since Jul 2014

2130 posts

Posted on 4/17/15 at 7:04 pm to BoogaBear

How hard did you shop for rates? Some of the local banks will work with you on the PMI. Its a worthless $100 or more you are just throwing away each month. If you do an amortization table, you will see how much money in interest you are costing yourself by not applying that extra $100 to your note or, as many here would say, investing.

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Posted by makersmark1

earth

Member since Oct 2011

15810 posts

Posted on 4/17/15 at 7:20 pm to Tigerfan56

No need to be in a hurry to buy.

Renting is not that bad and it gives you flexibility to move if a better professional opportunity arises.

Realtors and mortgage originators will tell you to buy what they can approve. I would buy a house that meets your needs.

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Posted by TJG210

New Orleans

Member since Aug 2006

28340 posts

Posted on 4/18/15 at 2:37 am to makersmark1

Why does anyone pay pmi? Much easier just to get a second loan to cover the remaining money to get you to 20%. Plus you can deduct the interest....not sure you can Deduct pmi.

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