how on earth can we save a down payment?

[Anonymous]

Is there anyone with children, that works full time, that bought a home in this area without employer or family support, that didn't leverage previously owned property, or can into some unexpected money?

I can't seem to save more than $125 month and we will never make it to $60,000-$80,000 that way yet we make about $10,000 to much a year to qualify for any home buyer assistance programs.

We kept getting scooped on homes because they pick the cash deposit over our FHA situation....and at the moment we are renting and have given up.

Advice is appreciated.

[Anonymous]

Yes. We lived VERY simply for about three years. We did NOT eat out. We brought lunch to work. DH had previous construction experience and in the sprng and summer worked construction on weekends. I picked up extra work for the holiday season.

We lived in a studio. We did not go to the movies, we did not travel, we did not have cable, we did not have smart phones, when relatives wanted to give us gifts for holidays or occasions we asked for gift cards to Trader Joes or Netflix months or giftcards to Old Navy for DD or Target. We REALLY scrimped. We went to people's homes minimally because reciprocating was beyond difficult at our house.

We kept going because seeing our savings grow and grow spurred us forward. It was hard, but "suffering" (in our first world way) was totally worth it and I think it's in the category of having made us a stronger couple since it didn't kill us.

[Anonymous]

Anonymous wrote:Yes. We lived VERY simply for about three years. We did NOT eat out. We brought lunch to work. DH had previous construction experience and in the sprng and summer worked construction on weekends. I picked up extra work for the holiday season.

We lived in a studio. We did not go to the movies, we did not travel, we did not have cable, we did not have smart phones, when relatives wanted to give us gifts for holidays or occasions we asked for gift cards to Trader Joes or Netflix months or giftcards to Old Navy for DD or Target. We REALLY scrimped. We went to people's homes minimally because reciprocating was beyond difficult at our house.

We kept going because seeing our savings grow and grow spurred us forward. It was hard, but "suffering" (in our first world way) was totally worth it and I think it's in the category of having made us a stronger couple since it didn't kill us.

You had kids in a studio?

[Anonymous]

First home took me till age 37 to save up required down payment (1994). Also had to pay off school loans, car, CCs, etc., before I could qualify, but once I was "in," was able to roll over to better homes over the next 20 years.

I think purchasing your own property is more important than a college education (I have an advanced degree) - at least in this area.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Yes. We lived VERY simply for about three years. We did NOT eat out. We brought lunch to work. DH had previous construction experience and in the sprng and summer worked construction on weekends. I picked up extra work for the holiday season.

We lived in a studio. We did not go to the movies, we did not travel, we did not have cable, we did not have smart phones, when relatives wanted to give us gifts for holidays or occasions we asked for gift cards to Trader Joes or Netflix months or giftcards to Old Navy for DD or Target. We REALLY scrimped. We went to people's homes minimally because reciprocating was beyond difficult at our house.

We kept going because seeing our savings grow and grow spurred us forward. It was hard, but "suffering" (in our first world way) was totally worth it and I think it's in the category of having made us a stronger couple since it didn't kill us.

You had kids in a studio?

Yep.

[Anonymous]

Anonymous wrote:Is there anyone with children, that works full time, that bought a home in this area without employer or family support, that didn't leverage previously owned property, or can into some unexpected money?

I can't seem to save more than $125 month and we will never make it to $60,000-$80,000 that way yet we make about $10,000 to much a year to qualify for any home buyer assistance programs.

We kept getting scooped on homes because they pick the cash deposit over our FHA situation....and at the moment we are renting and have given up.

Advice is appreciated.

Have you done a budget?

[Anonymous]

Sorry, it's hard. We saved significantly before we had kids and we bought the house that we wanted to raise kids in. It would have been much harder to save enough after kids. But this is part of why we didn't have kids until 9 years after we got married.

But some good ideas. I work a full-time job, but I have a second job that I work weekly that gives me about $3000 per year. Before kids, that money went to the house fund. Now, after kids, some of that money goes to a splurge of a monthly housecleaning service that helps keep us from being completely exhausted and the rest goes into a fund for when our 9 year old car dies (I'm hoping it will make it to 15 years, and it seems to be in great shape now, so possible). Picking up a part-time job, even if only seasonal is a good idea to help create a house fund.

[Anonymous]

Anonymous wrote:First home took me till age 37 to save up required down payment (1994). Also had to pay off school loans, car, CCs, etc., before I could qualify, but once I was "in," was able to roll over to better homes over the next 20 years.

I think purchasing your own property is more important than a college education (I have an advanced degree) - at least in this area.

How so? I don't get this. Renting isn't evil; I hate that attitude.

[Anonymous]

We put 5% down, not $60k-$80k. And we took a TSP loan and a Roth IRA withdrawal to pay the down payment, fees, closing costs, etc.

No family help. Lots of student loans (two lawyers). Our PITI payment is the same as what we were paying to rent.

[Anonymous]

We had to leave DC. The cost of housing/down payment would have put our lives on hold. We didn't want to wait to have kids.

[Anonymous]

What trade-offs are you willing to make? I know a few people who freelance / have a 2nd job for a few hours a week.

People who lived in "starter" homes / townhouses.

[Anonymous]

You can get a conventional pretty easily with only 10% down if your credit is good. I recommend that over FHA. The PMI on FHA is ridiculous over the life of the loan and conventional will be more appealing to sellers and qualify you for more houses.

In addition, we bought a tiny two bedroom relatively close in (but on a nice big lot where most of the other houses have been expanded and with a finished basement). Our payment now is affordable and we hope that in time we will be able to save up to expand. If not, we have a great location and still much more space than we did renting in the city.

You are going to have to make compromises when you purchase, but it is doable. Figure out what compromises you can live with and go for it.

[Anonymous]

Tell us what you spend and we'll tell you how to save.

Hint: if you have a smartphone, a car payment or have ever bought coffee, walk away now, cause you're not actually serious about saving,

[Anonymous]

Anonymous wrote:

Anonymous wrote:First home took me till age 37 to save up required down payment (1994). Also had to pay off school loans, car, CCs, etc., before I could qualify, but once I was "in," was able to roll over to better homes over the next 20 years.

I think purchasing your own property is more important than a college education (I have an advanced degree) - at least in this area.

How so? I don't get this. Renting isn't evil; I hate that attitude.

not PP but it is so because with college degree it will still take you forever to actually own home. i prioritize leaving my kids property over college education. and we a two phd-s family.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:First home took me till age 37 to save up required down payment (1994). Also had to pay off school loans, car, CCs, etc., before I could qualify, but once I was "in," was able to roll over to better homes over the next 20 years.

I think purchasing your own property is more important than a college education (I have an advanced degree) - at least in this area.

How so? I don't get this. Renting isn't evil; I hate that attitude.

not PP but it is so because with college degree it will still take you forever to actually own home. i prioritize leaving my kids property over college education. and we a two phd-s family.

Please forgive me if I'm being dense here. But in this area it's difficult (not impossible, but difficult unless you learn some in-demand vocational trade) to get a good job without a college degree. If I didn't have a college degree I'd be in even less of a position to purchase property.