Am I crazy to think I can afford a house?

[Anonymous]

Anonymous wrote:The general rule of thumb is to put down 20%. But that doesn't include closing costs so you have to either have more then your $40K or put down less.

You've selected some of the most desirable neighborhoods in the DC area. Since they are desirable, the costs of housing is also higher. Your budget won't get you very far if at all in Bethesda, Cleveland park or any Nw dc neighborhoods

bahahaha 20% what is this 1983? No you can put down 3% and it more depends on income and debt nothing with down payment.

[Anonymous]

I think you're priced out of NW DC. Depending upon how you feel about schools, you may find other areas of the district available in your range. But I'm pretty sure they're the sketchy areas at best.

Why are you against VA? You're priced out of close in Mont. County. You could look at Wheaton or SS as the PP mentioned. The other place I would look would be PG County.

[Anonymous]

Anonymous wrote:

Anonymous wrote:The general rule of thumb is to put down 20%. But that doesn't include closing costs so you have to either have more then your $40K or put down less.

You've selected some of the most desirable neighborhoods in the DC area. Since they are desirable, the costs of housing is also higher. Your budget won't get you very far if at all in Bethesda, Cleveland park or any Nw dc neighborhoods

bahahaha 20% what is this 1983? No you can put down 3% and it more depends on income and debt nothing with down payment.

to add we put down less than that on 900k

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The general rule of thumb is to put down 20%. But that doesn't include closing costs so you have to either have more then your $40K or put down less.

You've selected some of the most desirable neighborhoods in the DC area. Since they are desirable, the costs of housing is also higher. Your budget won't get you very far if at all in Bethesda, Cleveland park or any Nw dc neighborhoods

bahahaha 20% what is this 1983? No you can put down 3% and it more depends on income and debt nothing with down payment.

to add we put down less than that on 900k

Pimmit Hills?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The general rule of thumb is to put down 20%. But that doesn't include closing costs so you have to either have more then your $40K or put down less.

You've selected some of the most desirable neighborhoods in the DC area. Since they are desirable, the costs of housing is also higher. Your budget won't get you very far if at all in Bethesda, Cleveland park or any Nw dc neighborhoods

bahahaha 20% what is this 1983? No you can put down 3% and it more depends on income and debt nothing with down payment.

to add we put down less than that on 900k

Pimmit Hills?

haha no

[Anonymous]

^^ Ha Ha +1. are you serious?!

[Anonymous]

What about Takoma/Takoma Park? There are some pretty nice condos not far from the Metro, where a huge development will be going in soon. I would think this would increase property values in the coming years too. The Takoma Education Campus is growing in popularity and getting good reviews from parents, too.

http://www.redfin.com/DC/Washington/7054-Eastern-Ave-NW-20012/unit-202/home/40298615

[Anonymous]

Anonymous wrote:What about Takoma/Takoma Park? There are some pretty nice condos not far from the Metro, where a huge development will be going in soon. I would think this would increase property values in the coming years too. The Takoma Education Campus is growing in popularity and getting good reviews from parents, too.

http://www.redfin.com/DC/Washington/7054-Eastern-Ave-NW-20012/unit-202/home/40298615

+1, although knowing the rents in the area I'm still not sure they could afford a TH there, maybe a condo. I saw a TH listed for 300k recently but over a mile from the metro, so closer than that would only be higher.

[Anonymous]

Mclean Gardens, Ordway Gardens, lots of condos up and down Connecticut Ave. in Cleveland Park, Van Ness. Don't give up, find something in the location you want.

[Anonymous]

If you are buying in DC and you make less than $70,000 combined, check into DC's First Time Home Buyers Lower Income Home Ownership Tax Abatement program. You can be exempt from recordation tax and possibly transfer tax at closing, and you can skip paying property taxes for five years.

[Anonymous]

you could do an FHA loan and do 3.5% down using 40k and get a 500k home.

or NASA FCU 100% no DP no PMI

https://www.nasafcu.com/mortgagecenter/

High Loan to Value Mortgage – Limited-Time Special Offer!
For a limited time, NASA FCU is offering a mortgage option not readily available through other lenders. This is a unique loan that does not require mortgage insurance, and is available for new primary residence purchases or refinances of a current primary residence, in Maryland, Virginia or the District of Columbia (DC).*

Our High Loan to Value Mortgage features:

Up to 100% financing for a primary residence purchase up to $650,000 (95% financing from $650,001 up to $850,000)
Up to 95% cash out refinancing on a primary residence up to $650,000 (90% cash out from $650,001 up to $850,000)
Financing available for primary residences in MD, VA & DC
No mortgage insurance required
*This offer is limited to well-qualified applicants. Some restrictions may apply. Offer is valid for primary residence only. Speak with a NASA FCU First Mortgage Loan Specialist for loan details and rates.

No PMI Mortgage

[Anonymous]

Anonymous wrote:

Anonymous wrote:What about Takoma/Takoma Park? There are some pretty nice condos not far from the Metro, where a huge development will be going in soon. I would think this would increase property values in the coming years too. The Takoma Education Campus is growing in popularity and getting good reviews from parents, too.

http://www.redfin.com/DC/Washington/7054-Eastern-Ave-NW-20012/unit-202/home/40298615

+1, although knowing the rents in the area I'm still not sure they could afford a TH there, maybe a condo. I saw a TH listed for 300k recently but over a mile from the metro, so closer than that would only be higher.

The link was to a condo for $180K. With a $40K downpayment OP could avoid PMI and have a mortgage even with the HOA dues within her $1500 budget. And be steps to the Metro, cute shops, the Takoma Park farmer's market, etc. Pretty good deal if you ask me.

[Anonymous]

Anonymous wrote:you could do an FHA loan and do 3.5% down using 40k and get a 500k home.

or NASA FCU 100% no DP no PMI

https://www.nasafcu.com/mortgagecenter/

High Loan to Value Mortgage – Limited-Time Special Offer!
For a limited time, NASA FCU is offering a mortgage option not readily available through other lenders. This is a unique loan that does not require mortgage insurance, and is available for new primary residence purchases or refinances of a current primary residence, in Maryland, Virginia or the District of Columbia (DC).*

Our High Loan to Value Mortgage features:

Up to 100% financing for a primary residence purchase up to $650,000 (95% financing from $650,001 up to $850,000)
Up to 95% cash out refinancing on a primary residence up to $650,000 (90% cash out from $650,001 up to $850,000)
Financing available for primary residences in MD, VA & DC
No mortgage insurance required
*This offer is limited to well-qualified applicants. Some restrictions may apply. Offer is valid for primary residence only. Speak with a NASA FCU First Mortgage Loan Specialist for loan details and rates.

No PMI Mortgage

You missed the part where OP said she could afford a $1500 payment. No way she is getting that deal for a $1500 payment. Stop trying to counsel her to buy more than she can afford.

[Anonymous]

Maybe op needs to analyze if she could afford more by taking the mortgage deduction into consideration. The bank will tell you what the max monthly you can afford is.

Doing 20% down is very foolish when rates are low

[Anonymous]

Down payment is not as important as income and credit score. But those neighborhoods can be difficult to find something you like.