670 score, 16k, want to borrow 700k

[Anonymous]

Anonymous wrote:Honestly guys I think this is a troll post.

But if it's not, OP you don't NEED a 700k house. You could totally get by with a townhouse in the 400-500 range. But regardless, you don't have the money for it right now. Go move into a $2000 townhouse for now. You are worried about moving and losing half of your savings? What is going to happen when you buy and lose ALL of it?

Where? I am not a troll. I am very tired of , as other poster stated, setting 4500 on fire building nothing for my generational bank.

[Anonymous]

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Anonymous wrote:I am so confused here. How do you make that much income and have such a crappy credit score??
And why on earth are you looking to buy a house in the $700,000 range with so little savings?? Why aren’t you looking at least in the $500,000 range? There are plenty of nice houses for that much.

Where? Any place in that range I’ve found either is a tear down, a school that would require private school, or a crazy high (hoa ) condo.
I would like to keep my entire mortgage, taxes, and etc to under 4000 preferably in the 3300 range.

DP but honestly I think you should buy a condo. The condo market is not going insane like SFHs and you can’t afford down payment/closing costs on a SFH anyway. The HOA fees are annoying but you’re 2 years from being able to buy a SFH. Might as well build some equity.

Buying a condo to live in for just a couple of years is a terrible idea. The closing costs will more than eat up the small amount of equity OP is likely to accrue over that time period.

Double check your math. OP is currently setting $54k/yr on fire for rent. Merely not making money would be a huge win.

OP doesn’t have to spend that much on rent. They could move to a substantially cheaper apartment.

Even if OP downgraded to $30k/yr, or $60k/2 years, they aren’t going to lose $60k on condo transaction costs.

Go do the math on how much of those payments will go to equity in the first two years (especially given OP’s numbers), and then get back to us.

If OP buys a condo, incurs $20k in transaction costs to buy and sell, and sells at exactly purchase price in 2 years, that’s better than any rental deal. My math is all done.

How much equity are you assuming OP will accumulate during those two years? Have you factored in property taxes? Maintenance expenses? If the hot water heater dies during those two years, that’s OP’s cost to bear too. Condo fees?

You seriously--seriously--think it's going to cost more than $60k in taxes/maintenance/transaction costs to live in a condo for 2 years?

My hypo is based on 0 equity, simply not lighting rent money on fire anymore. And let's be real, a person who had been paying $4500 for rent isn't going to move into a $1500/mo place.

Op here. I would if I could find one with a good elementary school in a safe neighborhood ( no stray billets)

What is your commute?

[Anonymous]

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Anonymous wrote:A move to would like eat 1/2 of my 16k .

A local move should not cost $8,000.

Movers are 1k, deposit and first month rent looking at 5-6k and still pay current rent.

If you are worried about this, you definitely should not buy a house.

For a number of reasons a move to a purchased plac e( move only) will be less for me. Part of it being most of my furniture is literally (ikea) falling apart and if I knew I would not move again for 5 years or so I would not move it.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Honestly guys I think this is a troll post.

But if it's not, OP you don't NEED a 700k house. You could totally get by with a townhouse in the 400-500 range. But regardless, you don't have the money for it right now. Go move into a $2000 townhouse for now. You are worried about moving and losing half of your savings? What is going to happen when you buy and lose ALL of it?

Where? I am not a troll. I am very tired of , as other poster stated, setting 4500 on fire building nothing for my generational bank.

That is a good goal, but obviously something is way off if you've wrecked your credit and only saved 16K with such a high income. A house just seems like another impulse buy that you haven't really thought through.

[Anonymous]

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Anonymous wrote:I don't think you'll be able to borrow $700k with only $16k to put down. That $16k is only a bit over 2% of the amount you want to borrow. Most lenders want you to put down at least a 5% down payment. Zero-down mortgages do exist, but they require good credit.

Also, you really don't want to be cash-strapped and paycheck-to-paycheck after buying a house. Houses break and are expensive to fix.

Is there hope for you? Sure—for the future. You make good money, so you can save. Take a year or two to lower your expenses, save up for a larger down payment, and get your credit in better shape. Then you'll be in a better position to buy.

Even with two moves? Leave 4500k and leave where ever I rent next to my own place?

Why are your moves costing so much? Rent a UHaul, invite friends over an d move. It doesn’t have to be expensive. If it is, you have too much for this, you have too much stuff. Get rid of some of it.

Where does your child stay when you have physical custody? Find a cheap ($1500-$1750) one bedroom apartment and sleep on the couch when your child is with you. Start to save and pay off your student loans. How old is the child and where does the child live they are not with you?

Can you break down the $1700 by student loan, car loan and child support?

800 student loans 600 car and insurance no child support -op

[Anonymous]

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Anonymous wrote:I don't think you'll be able to borrow $700k with only $16k to put down. That $16k is only a bit over 2% of the amount you want to borrow. Most lenders want you to put down at least a 5% down payment. Zero-down mortgages do exist, but they require good credit.

Also, you really don't want to be cash-strapped and paycheck-to-paycheck after buying a house. Houses break and are expensive to fix.

Is there hope for you? Sure—for the future. You make good money, so you can save. Take a year or two to lower your expenses, save up for a larger down payment, and get your credit in better shape. Then you'll be in a better position to buy.

Even with two moves? Leave 4500k and leave where ever I rent next to my own place?

Why are your moves costing so much? Rent a UHaul, invite friends over an d move. It doesn’t have to be expensive. If it is, you have too much for this, you have too much stuff. Get rid of some of it.

Where does your child stay when you have physical custody? Find a cheap ($1500-$1750) one bedroom apartment and sleep on the couch when your child is with you. Start to save and pay off your student loans. How old is the child and where does the child live they are not with you?

Can you break down the $1700 by student loan, car loan and child support?

800 student loans 600 car and insurance no child support -op

And unless scum counts I have no friends . At least none with backs than lift more than a grocery bag

[Anonymous]

Scum should be dcum

[Anonymous]

Anonymous wrote:

Anonymous wrote:Honestly guys I think this is a troll post.

But if it's not, OP you don't NEED a 700k house. You could totally get by with a townhouse in the 400-500 range. But regardless, you don't have the money for it right now. Go move into a $2000 townhouse for now. You are worried about moving and losing half of your savings? What is going to happen when you buy and lose ALL of it?

Where? I am not a troll. I am very tired of , as other poster stated, setting 4500 on fire building nothing for my generational bank.

What in the world are you renting for $4500 a month? A couple of years ago I was able to rent a three-bedroom house in North Arlington for two-thirds of that.

[Anonymous]

Why is your rent SO high? That's insane.

[Anonymous]

And can you answer why you need a 700k SFH? You can have a great townhouse for less than 500k in GREAT areas of S. Arlington, Burke, etc.

[Anonymous]

Definitely a troll post.

Go rent a house in Silver Spring for $2500/month. Save the extra $2000/month in an index fund.

[Anonymous]

Anonymous wrote:Your credit should be good enough for an FHA loan with 3.5% down. You will need money for closing costs too so you would still need to save a bit more.

+1

This is how we got our first home for 700k

[Anonymous]

OP, there are a lot of people here with experience buying and owning homes who I imagine would be happy to help you put together a realistic plan for homeownership. For us to do that, we need you to engage on some basic questions to better understand your financial situation (including why your credit score is so low) and any other relevant considerations. Is that something you’re willing to do?

[Anonymous]

Anonymous wrote:Definitely a troll post.

Go rent a house in Silver Spring for $2500/month. Save the extra $2000/month in an index fund.

Putting the savings in an index fund is a terrible idea if OP is planning to use that money to buy a home in the next couple of years.

[Anonymous]

Anonymous wrote:

800 student loans 600 car and insurance no child support -op

When you said “ I earn 175k and have st loan car note and kid costing about 1700 month in payments. ” , it made it sound like you have three payments: st loan, car note, and kid.

Where is your commute? How old is your child? Where is the other parent in this?

I think that you cannot purchase anything right now. You have to move to an expensive place to rent. You. May be renting for quite a long time-so do not worry about the cost of a second move right now. Believe it or not, there are cheaper places to live where the schools are good. If you tell us where you work (general area), this site can tell you where the bargains are so that you will have a decent commute and your child will have a decent school and you both will have a decent place to live. You have a very healthy income.

I think you need to let go of trying to purchase something right now. You need to concentrate on building up your savings, including an emergency fund, and then your retirement fund and then college fund for your child (your income will mean they will not qualify for any need based aid). Once you move, you can also have fun looking around the various thrift shops to get cheap furniture that is well made and not Ikea.

So, first questions again: what is the age of your child, to where is your commute, and where is the other parent?