Take Advantage of a First-Time Homebuyer's Program?

Take Advantage of a First-Time Homebuyer's Program?

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[stevenvlogsnc]

On a 15-year mortgage at a payment that is no more than 25% of my take-home, that would basically mean I will never be able to buy a house more than 100k

[speeddemon]

Dave, PMI isn't that much on a conventional loan. I did a 97% conventional, loan amount $284k, my PMI is $64 a month. Had I put 20% down to avoid PMI, my down payment would have been $58k. That's an extra $50k over what I put down just to avoid $64/mo.

[TimeisUp]

She’s rushing. She sounds exhausted in her voice. Just take the next 2-3 years saving as much as you can for the house and get what you want. Don’t Rush when your not ready.

[GrumpyCat-mwxl]

My philosophy is this. As long as your house payment is the same payment as you would be paying for rent buy the house.

[a]

"the housing prices here are astronomical... 300-400k for a three bedroom house"

*Cries in Canadian* (Toronto)

[shipped_my_pants_]

25% of take home on a 15 year mortgage means you have to make AT LEAST 100k gross a year to afford a 200k house according to Ramsay

[abyxis]

PMI isn’t going to hurt you as much as saving 20% while you rent and toss that cash in the trash.

[bigeric]

Under daves suggestions 90% of people cant buy a home

[coryascott]

Dave is wrong here. I live in Washington and used the same first time buyer program to buy my condo for 140k four years ago with zero down. I was also 24 years old. I still live there today with nearly $100k in home equity that I paid zero down to get.
My net worth is now nearing $200k at 28 years old, single, no degree, high school dropout, $100k income, no debt besides mortgage.
A zero down program only doesn’t make sense in areas that don’t appreciate quickly. In Washington, real estate appreciates very quickly and that 20% you want her to put down will be meaningless in a couple years when she is way more in equity than that 20%.

Sometimes the Dave way doesn’t make sense.

[karenmm]

"House prices here are astronomic! Minimum 325-350..." me hearing this from Toronto thinking that's hella cheaaap 😭

[Lilbit]

This is why I'm putting my all into a mutual fund so I could avoid PMI for a good down payment and maybe the whole price. Hopefully in 2-3 years I'll be where I need to be.

[villanova]

The housing costs she mentioned in the beginning are amazing compared to where I live. Yikes

[outoftheboxwoodworks]

My first home, which is very affordable as I live way below my means has been working out fine for 20 years now, I should have started out with a 15yr fixed, only mistake but I cruised during the 2008-9 recession even though work was very slow. We thought about upgrading but at this point I think we would be better off with another inexpensive second home up in the mountains. No need to be house poor and no reason you cant dream. Im just waiting until the upcoming crash to occur so I can swoop in with hopefully enough cash and pick up that second property for a steal..../...

[luvtotrade]

LOL she says the cost of living in Vancouver is astronomical and she says homes cost between 325 to 400k.

Ah, in california and new york, that would be considered a down payment sadly lol

[cokebottles]

The only place I could afford to live off this advice is someplace in the South assuming I can still make what I make… housing is impossible for 80-90% of new home buyers.

There is no place in the mountain west I can afford to buy a home and I make 100k a year. (Utah, Idaho, Colorado)…

[tygur]

I bought a home utilizing the Fha 1st time homebuyers program. My total monthly payment is 550 a month. My girlfriend lives in the same suburb in a smaller home and her rent is 1300 a month lol

[j.mney]

I love Dave but I disagree with him. One of the best ways to build your wealth is owning a home and letting it appreciate. Keep the mortgage around 25% of income and you should be alright.

[dudelove]

2 years later im buying my first home in Vancouver WA and using the zero down program lmao. Wish me luck guys

[bryandelcid]

300-400k is not astronomical for a 3 bedroom house. It’s double of that in southern C.A.

[sandyseibelhager]

So I chose to live in a not so decent house and not so decent neighborhood. I also did it with no money down. We are paying it off in October at the latest. It was a 30 year mortgage in 2007. If she buys in the suburbs that will get the price down too. Many people have forgotten the term starter home