Here I am, webhopper!
I used an assistance program that paid all of my closing costs. I paid my down payment of $1925 with my $2k earnest deposit. The program was also suppose to pay half of the down payment but because my loan amount (53,075), interest rate (3.75%), and mortgage payment ($354/mo) are so low, they didn't.
I was approved with just my employment income estimated at $1200/mo. I do have other income such as child support, freelancing, and my child's disability, but I didn't want any of it considered since it varies.
I've been in my home for a month now, and even though I bought for 55k (contracted price since March), it is now valued at over 85k...conservatively. I don't think I've made a smarter decision in my life than going for a house when I did.
I don't know if I'd qualify for an assistance program like that or not, but I'm hoping I can save up enough for closing costs.
My plan is to currently go with a 20 year fixed loan, or go for a traditional 30 year fixed loan and then re-finance it later on (or just pay it off early) if/when my income goes up. I'm going through a local credit union so I will be able to do so without any kind of early payoff penalty.
Sounds like you've done some research and you are being realistic in your search. No reason to make rent payments with nothing to show for it if you can purchase and build equity. I congratulate you on your efforts and the beginning of your new family.
My neighbor pulled it off, $242000 home, all paper on an FHA loan, he makes $20/hr, spouse stays at home. He also drives a newer Mustang GT.
So how much was his down payment no way he could have passed the DTI requirements and it just sounds like a recipe for disaster..Of course unless he got it before the housing market collapsed because that was the type of lending that got people in trouble.. Just my .02
He pulled it off, but can he maintain it? I mean that much mortgage with that income? It seems destined to fail.
That's ... more then I'd do, haha. Granted, a $200k+ house here is a 10 thousand square foot mansion overlooking the Illinois river (okay, maybe one of the smaller ones, but still...). Housing is dirt cheap here right now. But I'm looking at places around $60-70k with 3-4 bedrooms in the hopes that it'd support a family for a long time to come. The area I'm looking at is within half a mile from where I grew up, so I'm in love with it. Granted, the couple of houses we've looked at online / drove by won't be available anymore by the time I'm ready to buy next year
An update -
My debt's just about paid off - my tax return will knock the rest of it off completely with plenty left over for savings. My score actually might bounce up near 800, so that might help me to get a supplemental loan for a down payment if absolutely necessary. Needless to say, I'm getting excited. My mother has connected me to an old coworker as a realtor that will help me start planning/looking without charging anything. I plan to contact her once the debt is 100% gone in a couple of weeks.
As predicted, the houses I really liked in our area are now gone with the exception of one (that has had the price go down 10k). I have a feeling there's a lot for sale that isn't listed online, though.