HELP!!! USDA or BUST what am I qualified for??

[Anonymous]

I work in the collection/credit reporting/bankruptcy field and I see people experience unexpected financial setbacks all the time. The example I gave was extreme in nature and isn't common. But each element on its own is common.

On the other hand, I also see some on unemployment and not trying to find a job.. They feel it is their right to use the system.

Some could find a job but wouldn't pay enough to cover daycare expenses, etc. so unemployment is preferred. Do I personally agree with it? No, but it happens more often that people think. My sister in law is one of them. She doesn't "need" the money as her husband works and gets paid handsomely. But she feeels it is her right to skim from what she paid into. Maybe she is right. Maybe she isn't.  But that is a whole other topic!!!

[FrugalRican]

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@tooleman694 wrote:

Advice given to me, was to buy at the max.

For several reasons.

1. You will grow into the mortgage payment. From year to year payments don't go up a lot, but your income should.

2. Buying a smaller home now can bite you in the future if you need something bigger. Just buy the big home now and grow into it and not worry about selling later.

3. That more expensive home may get you into a nicer part of town. Better school, resale value and things like that.

4. You want to be happy..

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I used to hear this a lot before 2008.

Ignorance was bliss back then.

[tooleman694]

That is true.

But even if you don't buy at the max. if someone losses their job and can't find another, once you use up your reserves your gonna loss the house anyways.

[Familywantsahouse]

It's a whole heck of a lot easier to work a couple of menial part time gigs and cover an 800 mortgage than it is to cover a 1800 mortgage, no? We have less debt than you, and more income and no way would I want to take on a 240k mortgage....

[FrugalRican]

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@tooleman694 wrote:

That is true.

But even if you don't buy at the max. if someone losses their job and can't find another, once you use up your reserves your gonna loss the house anyways.

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That's a terrible way to approach it.

"Hey, just buy BIG, if it fails, you'd lose it no matter if it's a big or small house."

Are you sure you didn't work for one of those banks telling people to buy out of their leagues?

I've worked way too much with people who bought into the ideas you were putting out there, and I saw a lot of them fail at it too. People buying 2,000 sq feet houses when they could have done just fine with 1,200... only because they COULD, not because it was affordable or because in terms of losing a job, they could definitely have a fighting chance at keeping it.

You're essentially telling someone... buy big because who cares if you lose your life's savings and retirement.

[tooleman694]

If it comes to that, yes it is true it would be easier.

But personally im not gonna live my life thinking about the worst. Sure ill prepare the best I can, and live within my means.

But to buy a house thinking I can pay it if I work at Taco Bell, nope not gonna happen.

You don't get anywhere in life if you don't take on some risk.

[FrugalRican]

So you tell people to buy big but then say you live within your means.

Make up your mind please.

You take some risk, but you don't tell people to take on more than they could afford when the risk is all theirs.

Nobody said you should buy a house thinking you're going to work at Taco Bell, btw.

[tooleman694]

Buying a house with a 40 something backend ratio is living within your means. You can afford it if you budget properly.

Doing a no doc loan and buying something you know you can't afford is a completely different story. that and those interest only loans of the past. bad bad idea.

[Anonymous]

t's a whole heck of a lot easier to work a couple of menial part time gigs and cover an 800 mortgage than it is to cover a 1800 mortgage, no? We have less debt than you, and more income and no way would I want to take on a 240k mortgage....

in reply to ^^^

Thats cool... thats your opinion.. I am currently paying someone elses $1400 monthly mortgage, and dont see why I shouldnt be wanting to pay my own.  and let me tell you I pay that for a MEAGER 520 sq. ft house.  Its not too common in NY to find a house less than $200,000 unless its a condo, and I dont want that.  I was afraid of a big mortgage like 3 years ago but now that I have put $50k into someone elses home and helped kept their credit a float for four years, I feel like its my time to live.

My fiancee works FULL time for our business. but he cant be on the loan because with self employment you have to show 2 years worth of the income so we cant.  so YES you have more income than I do, but combined you have no idea what we have.

[Anonymous]

Why do you have to do deal with USDA on a guaranteed loan? We dealt entirely with the bank.

I'd say go with what you are comfortable with factoring in any close future expenses you might incur such as having a kid. They'll hurt your pocketbook once school starts.