Am I crazy to think I can afford a house?
![[Post New]](/jforum/templates/default/images/icon_minipost_new.gif){kind=icon}
Anonymous
| All we have is 40k to put down as a deposit. We can afford a monthly mortgage of $1500 a month. Is it unreasonable to think of buying a house in the Bethesda, Cleveland park or any Nw dc neighborhoods. I am new to the country so have very little knowledge as to how all this works. Any helpful advice you can give me will be so very appreciated. TIA! |
Anonymous
| I don't think you have enough of a down payment to buy in the neighborhoods you are mentioning. |
Anonymous
| Yes, it is unreasonable. |
Anonymous
| You might be able to afford a condo with a price around $200,000 but I don't think you'll find one in the mentioned locales. |
Anonymous
|
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 |
Anonymous
| Thank you for the responses! Any suggestions on where I could look. |
Anonymous
| Why don't you talk to a lender and they will be able to tell you the amount of mortgage you can afford. However, you will likely have to look at other areas. The ones you mentioned are very expensive. |
Anonymous
|
A monthly payment of $1500 on a 30 year mortgage could cover a loan of about $250,000 or so (estimating since the exact interest rate, escrow payment, etc are unknown.)
Combined with your $40k, that's not going to buy a house in the areas mentioned. |
Anonymous
| OP are you looking for a house, townhouse, condo? |
Anonymous
|
Let's start with the easy questions.
1. Where to you work? 2. Your post states "we"...I'll assume there is a DH. Where does he work? 3. Do you have children? 4. Are they school age? 5. Will you need childcare? |
Anonymous
| You cant afford a one-bedroom in any of those areas. |
Anonymous
| Both Dh and I work in NW DC. We have one child, a toddler. I do not need childcare. As far as a townhouse etc, we will take what we can get. I am also only familiar with these areas but will move anywhere (except VA) as long as its safe. |
Anonymous
Are you open to private school for for you child when they reach K or are you looking at public school? |
Anonymous
| I would suggest renting but that will be considerably more than 1500/month... maybe buying in silver spring/takoma park?? |
Anonymous
| Don't forget to make sure you have enough $ for home maintenance and repair! |