Dave Ramsey and buying a house.

[Anonymous]

Recently I was having a discussion with some friends about how you could never buy a house in the DC area using manual underwriting as Dave Ramsey advises. Obviously if you have cash for the whole purchase price that is one thing but nobody would accept an offer with manual underwriting here and you wouldn't be able to get paperwork in order fast enough when you have to go from house to house here quickly when your offer isn't accepted.

Thoughts? I imagine this only works in areas where nobody actually wants to live so people are just happy to accept any offer.

To be honest I feel like many of Dave Ramsey's principles don't work here.

[Anonymous]

Some of his principles work here ("gazelle intensity" debt pay-down; moving when you get the max tax-free increase in home worth; prioritizing financial goals in the debt payoff, EF, retirement, order; etc.). Manual underwriting isn't one of them. I think he's a bit of a nut -- or at least oversimplifies and inserts religion in a bit more than I'm comfortable with -- but there's no need to throw the baby out with the bathwater.

[Anonymous]

Anonymous wrote:Some of his principles work here ("gazelle intensity" debt pay-down; moving when you get the max tax-free increase in home worth; prioritizing financial goals in the debt payoff, EF, retirement, order; etc.). Manual underwriting isn't one of them. I think he's a bit of a nut -- or at least oversimplifies and inserts religion in a bit more than I'm comfortable with -- but there's no need to throw the baby out with the bathwater.

Obviously some stuff works but my point is I feel like a lot of them don't and are more suited for someone who lives in Arkansas or the like.

His advice is to always move for example which frankly isn't as easy as he makes it out to be.

[Anonymous]

As much as I like Dave, I don't follow his advice 100%.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Some of his principles work here ("gazelle intensity" debt pay-down; moving when you get the max tax-free increase in home worth; prioritizing financial goals in the debt payoff, EF, retirement, order; etc.). Manual underwriting isn't one of them. I think he's a bit of a nut -- or at least oversimplifies and inserts religion in a bit more than I'm comfortable with -- but there's no need to throw the baby out with the bathwater.

Obviously some stuff works but my point is I feel like a lot of them don't and are more suited for someone who lives in Arkansas or the like.

His advice is to always move for example which frankly isn't as easy as he makes it out to be.

maybe but people pay for his services so i am sure he is happy

[Anonymous]

I'm a big fan of Dave Ramsey's teachings, in general. I've been through FPU 3x (once when single, once with DH, once with a friend after she went through a divorce), and we've done very, very well for ourselves from basically nothing by living generally in line with his principles.

Even I think his advice not to keep your credit score good is ridiculous and out of touch with reality. We use a credit card and pay it off monthly.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Some of his principles work here ("gazelle intensity" debt pay-down; moving when you get the max tax-free increase in home worth; prioritizing financial goals in the debt payoff, EF, retirement, order; etc.). Manual underwriting isn't one of them. I think he's a bit of a nut -- or at least oversimplifies and inserts religion in a bit more than I'm comfortable with -- but there's no need to throw the baby out with the bathwater.

Obviously some stuff works but my point is I feel like a lot of them don't and are more suited for someone who lives in Arkansas or the like.

His advice is to always move for example which frankly isn't as easy as he makes it out to be.

Are you always this condescending?

[Anonymous]

I am simply saying that his idea of no credit and having to do underwriting is not realistic here.

And honestly I can't imagine one place to rent around here that wouldn't require your credit score either. I just don't like that he acts like its no big deal and it's no problem etc...

It's a fact of life here.

[Anonymous]

I live in a much more affordable area of the country - not having a credit score is totally unrealistic here too. It's not just unrealistic in expensive areas.

[Anonymous]

Anonymous wrote:I'm a big fan of Dave Ramsey's teachings, in general. I've been through FPU 3x (once when single, once with DH, once with a friend after she went through a divorce), and we've done very, very well for ourselves from basically nothing by living generally in line with his principles.

Even I think his advice not to keep your credit score good is ridiculous and out of touch with reality. We use a credit card and pay it off monthly.

+100

I follow most of this teachings but some are not practical for the DMV.

[Anonymous]

I believe he said he was born and raised in TN and hasn't lived anywhere else therefore, I don't agree with him on the not having a credit score either like other posters.

Where I live, the chances of you getting a house and/or car with no credit score is pretty slim.

I also continue to contribute to my retirement while in baby step 2. I will not stop that.

$1000 emergency fund is not enough for me either. I have more than that plus I continue to save. I'm not saving a huge amount but I still put something in my savings each paycheck.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Some of his principles work here ("gazelle intensity" debt pay-down; moving when you get the max tax-free increase in home worth; prioritizing financial goals in the debt payoff, EF, retirement, order; etc.). Manual underwriting isn't one of them. I think he's a bit of a nut -- or at least oversimplifies and inserts religion in a bit more than I'm comfortable with -- but there's no need to throw the baby out with the bathwater.

Obviously some stuff works but my point is I feel like a lot of them don't and are more suited for someone who lives in Arkansas or the like.

His advice is to always move for example which frankly isn't as easy as he makes it out to be.

Are you always this condescending?

I don't think they meant to be condescending. I assumed they just used Arkansas to represent that it's easier to follow Dave Ramsey's principles when you live someplace with a lower cost of living.

[Anonymous]

Anonymous wrote:I believe he said he was born and raised in TN and hasn't lived anywhere else therefore, I don't agree with him on the not having a credit score either like other posters.

Where I live, the chances of you getting a house and/or car with no credit score is pretty slim.

I also continue to contribute to my retirement while in baby step 2. I will not stop that.

$1000 emergency fund is not enough for me either. I have more than that plus I continue to save. I'm not saving a huge amount but I still put something in my savings each paycheck.

Exactly. He doesn't have any idea how things are living in other parts of the country.

[Anonymous]

He believes in Jesus and talks about it. What else do you need to know to show that he hasn't a clue?

[Anonymous]

Anonymous wrote:He believes in Jesus and talks about it. What else do you need to know to show that he hasn't a clue?

Yeah this part bothers me too. I don't know why it needs to be involved in financial talk. It's misplaced and in my opinion makes him see out of touch with other people's beliefs.