If we're going to borrow money from our parents for a down payment . . .

[Anonymous]

How about this statement:

If the only way anyone can afford to buy a house is to borrow money from mommy and daddy for a down payment, then clearly the market is over-priced.

Such instabilities cant last. That money will evaporate when the market becomes stable again. This is not a sustainable.

[Anonymous]

I don't understand the people who keep claiming that the market is overpriced because a person, or a set of persons, can't afford it. If the demand is still there to support the price, regardless of whether the purchaser receives help from family, it is likely not overpriced. Many of my friends who have bought nice houses in the city have gotten help from family. These are not subprime loans, these are wealthy families sharing assets. Maybe you don't like that some people's families are wealthy enough to do this, but it has absolutely nothing to do with the real estate market - it has to do with family wealth.

[Anonymous]

Well, we can afford a monthly payment on a house, but since we already own a townhouse and have a kid in daycare, we don't have a TON of money to put aside for a down payment without the sale of our current home (and we have no idea what that will net, but it likely will be less than 20% for a single family). Waiting another couple years though could increase our payments due to interest rates. But, lots of people aren't willing to accept a home sale contingency, so we're seeing almost nothing but investors buying properties and then turning around and renting them. We feel like families in starter homes (townhomes and condos) are really stuck in the middle, and I know I'm not the only person out there with this problem.

My family has offered help in the interim if we just can't pass up a house and have to jump before our current townhome sells. We've been offered every type of mortgage program available, including zero down, but we aren't sure of the costs of refinancing after the fact.

Ugh, this market is so ridiculously frustrating. We don't get massive bonuses that help to build up savings quickly, we're trying to do the right thing saving for retirement and what not. We haven't been able to stash away much extra cash after our current mortgage payment, plus daycare, plus retirement out of pocket, etc. etc. We are pretty disciplined in terms of money - it isn't like we waste money.

I'm not the OP - I'm just throwing it out there so that people who aren't currently in the middle of the housing market know what is going on.

[Anonymous]

Anonymous wrote:

Anonymous wrote:
Also wanted to add that if people had not been dishonest and took downpayment money from others, house prices would have not gotten out of control. The bubble would have been identified earlier, smaller in size, and easier to fix.

How is accepting a down payment being dishonest? Banks have gift letter forms for a reason. Some of you are just mad because you didn't have anyone to help you. "Well I had to do this so you should too!!" Get over it and be glad you were in the position to not need the assistance.

Also, accepting a gift doesn't mean you can't afford a house. In many cases, mortgages are less than the rent people are paying so they'll be able to have a little cushion in order to save more money.

Don't try to act like people getting help with a down payment is new because it's not. My parents had help when they bought their first house- they paid it back, but still they had help.

Agree. The person who is spouting out about dishonestly has an axe to grind with someone is making huge leaps in judgement because of it. It sounds like OP is buying well within their means and not simply borrowing because they want a bigger and better house. This was my exact situation years ago - we figured out in the long run it would be much more financially sound to bring a little more money to the table than do what we simply got approved for, and we were right. And we are not underwater in our home, in debt, or living beyond our means.