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[quote=Anonymous]My two cents:

I would only consider buying if you have a very realistic idea of what you can afford and resist the temptation to shop for homes that will be too expensive for you. I think 0-5 percent down can be an OK decision, if the loan terms are favorable, but ONLY if you are dead certain you are buying a home that is within your means. The payment should not be a stretch. You must be able to make it even if your income drops a bit, too.

Here's what we did - Husband and I had little savings, but he had a good job. I had just finished my graduate education and gotten a secure job as well. We used a few months of the extra income to save 5 percent down. Then we went onto the market with strict criteria: we would pay a mortgage + tax bill totaling no more per month than our rent. Rationale: we knew we could afford our rent, because we'd been paying it for 3 years on a lower HHI.

We couldn't find much in the area we currenlty lived, but bid on a short sale. Then we decided to consider a different area where we could buy outright on our budget. Found something right away and made an offer. We're very pleased.

Caveat: We were looking at small houses -- condos and rowhouses. If you're family is stopping at four, I humbly suggest that you throw out everything you don't need, invest in good storage, and buy something small. This region is just so expensive, that if you are on any kind of budget you're better off with something very humble that you can afford, near where you want to work or send the kids to school. You can fix the ugly kitchen later.

Most people are more fastidious than we are. Nonetheless, that is my two cents.

If you really love homes that don't fit strictl, sober criteria then I would wait and save. At the very least, you need to save the difference between your rent and the mortgage/tax payments you want to make for a year with no problems.[/quote]

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