Questions related to first time home purchase

[Anonymous]

Hello everyone - I'm a board newbie but have read through about every post on this particular thread.

I am currently attempting to purchase my first home, and I am receiving conflicting information from 2 brokers and I am hoping someone on this list will be able to give me some unbiased advice.

For a background on me:

I currently work full-time and attend law school @ night.  I am half-way done (woo hoo!) so I have a small (legal assistant) salary now, which will hopefully double or triple after I graduate and pass the bar.  This will happen in 2-3 years, mid to late 2009 is when I finish school.  One of my big issues is that since I work full-time, I cannot work overtime or a 2nd job to meet extra bills or school expenses.  Therefore towards the end of every semester (fall, spring, summer) my credit cards are @ 100% max, and they get paid off to $0 3x a year w/ my student loan refund check (Aug, Jan, May).

So here are my issues:

1.     With my salary now, I qualify for down payment assistance from a couple of different areas within our region (depending on where I buy).  The one being pushed on me the hardest @ this time is a 25k down payment assistance that is a loan from the city, deferred with no interest to be repaid when the house is sold.  Issue is:  one lender is telling me to use the d/p assistance programs and another lender is telling me that I do not want to deal with them.

2.     Right now is the end of a semester so my (4) credit cards are @ 100% max.  They will be repaid @ the end of August.  One lender is telling me to wait until they are paid off and the same is reflected in my credit report before having them pull my credit for pre-approval/qualification or whatever... but the other lender (the one suggesting d/p assistance) is telling me to go ahead and let him pull it now to get the ball rolling.  I don't know how the cards being @ max will affect me qualification wise...  but if I find a home now that was perfect, I would likely lose it if I tried to wait until Sept/Oct to get financing, don't you think?  So I am confused here.

3.     Because my salary is low now and will be much higher in 3 or so years, I am wondering if it would be okay to do a hybrid ARM (where payment is fixed for 3 or 5 years, then becomes adjustable) so that my payment is lower (thus affordable) for me... then refinance or sell the house before the AR kicked in? 

Any advice anyone could give would be GREATLY appreciated.  The main reasons I am looking to purchase now instead of waiting until I finish school are that 1) rental prices have skyrocketed in my area and 2) I will graduate with around 200k in student loans and the $1000+ per month payment will be reflected in my debt-income ratio @ that time (loans are deferred now).

Thanks!

Jen

Message Edited by legally_jen on 07-25-2007 10:58 AM

[Anonymous]

Hey there legally_jen.  I haven't posted much, but I've lurked for quite some time, and in my quest to purchase my first home (hasn't happened yet, but that ball's starting to roll awfully fast), I've picked up a thing or three that might help (or maybe not, but I'm sure somebody will correct me if I'm wrong).

Before really addressing any of the issues you mentioned, do you know what your FICO scores are?  If you do, and the scores are at least 620 (for all three, or the average), then you should be okay.  I'm going on the assumption that your scores are above that (if not, please let us know).

1.  For the downpayment assistance, I'm assuming that you're not able to put down any money and need something that finances at 100%, correct?  Do you know if the program is administered by a nonprofit or by the city itself?  If it's administered by a nonprofit, it's my understanding that they are generally easier to deal with and more helpful.  If it's the city, you'd probably be best to be prepared for red tape that would make the old USSR blush.  Either way, I'd have the brokers crunch the numbers for mortgages with and without the downpayment assistance.  If it works out better in the long run, and you need to have it, that particular type of program isn't a bad deal.

2.  The only people who can really answer about the UTL on those cards is the underwriter for the mortgage.  Since the mortgage broker doesn't actually make the final decision on the loan, they can only give you an educated guess as to what it would do, though if they've been in the business any amount of time they can probably give you a good idea.  If your scores are all above 620, there shouldn't be too much trouble in getting a mortgage... but be prepared because some banks can get more jittery about UTL than others.  I know I used a lot of words to say "I don't know", so sorry about that, but the short answer is:  If you can pay them down before applying, it would probably be better to do so, but if you can get approval without doing that first (and you *must* have the house soon), then go ahead and apply.

3.  Of course it would be okay to do any reputable loan, so long as you know you can afford it.  That being said, though, I would recommend doing a traditional loan where you're actually building up equity the first few years instead of just paying interest - which is *exactly* like renting, except you pay the taxes.  That means that you might have to buy less than your "dream" home at first, but in three years when you do have a little bit of ownership, you'd probably be a lot happier than having nothing to show for all your hard work... especially if the real estate market "cools off" and you find you're living in a home that's worth just a tiny bit more than you paid for it, or worse, worth less than you paid.  Then you find yourself "upside down" and in trouble.  Being upside down will also work against you if you want to refinance, because there aren't many banks that would finance you for more than the house is worth... and I *really* wouldn't recommend you do that anyway.

I hope I didn't ramble too much and that was helpful.

[Anonymous]

My scores are not above 620.  My median score currently is 594 with the cards @ 100% max.  My median score in March when the cards were @ around 30%, was 611.

I have a few (paid) collection accounts on there from 2001/2002.  I also had 2 credit card accounts that I got when I was 18 & stupid which were settled in 2004.

Items I am disputing:

• A collection account for $29 (???) just popped up on my credit report last month and is allegedly from 2001.  I don't know the company or what in the world the $29 is - so I just sent them a dispute letter. 
• A collection account for $107 from a veterinary bill that I paid in cash in 2001.  They say they have no record of it.  It was also from 2001, but did not show on my credit until 2004.  I never got a bill or collection notice, so of course now I have no receipt.

One of my friends who is a broker told me it would be better to just pay these 2 items instead of worrying about fighting them over it.  Any thoughts?

Items I am disputing UNSUCCESSFULLY:

• My car loan lender (Riverside) has reported my payment as being 30 days late on 2 occassions.  I called them to have this removed and they told me that they could not remove the late strikes because it would be credit fraud???  <even though the payments were not really late>
• Car late strike 1:  I paid more than the amount due on my note every month and called the company first to insure they would apply the overage as "payments ahead" instead of to the principal - just in case I got into a bind one month and was short on $.  Dec 06 that happened and I sent $100 less than what was due (which should've been fine because I had $150 in "payments ahead").  I got a letter saying they hadn't rec'd my payment and I called them... was informed by "Rosa" that the overage was applied to principal and she was incorrect when telling me that it could go to payments ahead.  I told her I would send the remainder of the payment w/ my next paycheck on 1/20 (which I did) and she would not mark it as late.  (Needless to say, she marked it as late)
• Car late strike 2:  In May 07 I called and spoke to Rosa again because I had ordered new checks and they did not come in for some reason, so I called to ask them to take the payment over the phone.  Rosa told me that it was difficult for them to do this and it would be better if I could do an online bill pay (which I did immediately after).  The online bill pay deducted from my account on 5/29 but they say they didn't get it until 6/1 (one day late) - so another late strike.  When I called them last week to get these removed, I was informed that Rosa was no longer there and they could not remove the strikes b/c it amounted to credit fraud.  So now I have no idea what to do... suggestions?
• HSBC/RTG (Rooms to Go) - I have been disputing since 1999.  I filled out an app to get furniture, then decided to stay in (fully furnished) student housing so I didn't get any furniture.  They have an account reporting to my SSN in the amount of $3720.  I never got any furniture, or any credit card (you get a card from RTG like a visa or home depot card).  Anyway, if I call the company, they say they will not talk to me b/c its not my account (even though its reporting to my credit!!!).  I have repeatedly ask for documentation, but they never send me anything.  I have repeatedly disputed the account w/ the bureaus, but HSBC keeps verifying it as "my" account.  This is from 1999 (so debt is barred by statute of limitations) so to circumvent this they have changed the account from being late to reporting as "paid as agreed" with a $0 monthly payment.  This allows them to report the stupid account to perpetuity!!!  I'm at my wit's end and have met w/ 2 different credit counselors who were at a loss as to what I could do to get it off my credit (other than suing).

Any further advice anyone can give is GREATLY appreciated!  Thanks!!!

Jen

[Anonymous]

Credit Fraud...I think not. What you need to do if you truly where not late is dispute these items with the credit bureau personally. Make sure you have your record of when the bill was paid and they will handle it from there. Also with your cards being maxed will not determine if the underwriter will approve the loan or not. It will just determine how much you can buy. So if you cards are maxed and income is low you may not be able to buy that 100,000 home you wanted (just throwing out a #) you may only be able to buy a 85,000 home. I personally do not send any of my clients through a downpayment assistance program. We have so many programs available to us that you don't need to utilize those companies. As far as the 2 brokers don't let anyone push you if you are not ready. With having the 594 you may want to wait til Sept or whenever you pay off the cards and go through the process. Chances are it will raise your score and then can offer you a better interest rate in addition to qualify for more. It's just a couple months. If you have any questions at all please feel free to email me. I would be more than happy to help you!

Jayme

[Anonymous]

I only wish I could find a home for 100k!!!!  Unfortunately I live in the Tampa Bay area and you probably wouldn't want to DRIVE in the vicinity of a 100k area, much less live in it.  I have been looking around the 150k range which still puts me in a condo or much older home in one of the areas of town that is in "transition".

And regarding the car late payment strikes... the problem is that the lender is saying that they technically were late even though that was due to the misinformation that their (prior) employee gave me.  Since Rosa is no longer w/ the company, I am dealing w/ someone new who doesn't really give a squat what her predecessor told me.

Message Edited by legally_jen on 07-25-2007 04:26 PM

[Anonymous]

Things to remember... You can back out anytime!!!! You can even have both loans at the closing table to review!  DONT NOT GO TO CLOSING TILL YOU GET A HUD TO REVIEW!!!!!!!!

As for the down payment programs you need to ask for the terms!!!! I have one borrower that got 7K from the city of redding in CA and had to pay them 20k to refi. I also have one in Dallas that is getting 8k and after 5 years the money is free. So ask for the term!

As for the ARM's just stay away from them. Some banks stopped doing 2 year ARMs. Just do whats best for you and remember that you can find a loan officer under a rock on every street!

Good Luck

http://ficoforums.myfico.com/fico/board/message?board.id=generalcredit&thread.id=17531&view=by_date_... 

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legally_jen wrote:

Hello everyone - I'm a board newbie but have read through about every post on this particular thread.

I am currently attempting to purchase my first home, and I am receiving conflicting information from 2 brokers and I am hoping someone on this list will be able to give me some unbiased advice.

For a background on me:

I currently work full-time and attend law school @ night.  I am half-way done (woo hoo!) so I have a small (legal assistant) salary now, which will hopefully double or triple after I graduate and pass the bar.  This will happen in 2-3 years, mid to late 2009 is when I finish school.  One of my big issues is that since I work full-time, I cannot work overtime or a 2nd job to meet extra bills or school expenses.  Therefore towards the end of every semester (fall, spring, summer) my credit cards are @ 100% max, and they get paid off to $0 3x a year w/ my student loan refund check (Aug, Jan, May).

So here are my issues:

1.     With my salary now, I qualify for down payment assistance from a couple of different areas within our region (depending on where I buy).  The one being pushed on me the hardest @ this time is a 25k down payment assistance that is a loan from the city, deferred with no interest to be repaid when the house is sold.  Issue is:  one lender is telling me to use the d/p assistance programs and another lender is telling me that I do not want to deal with them.

2.     Right now is the end of a semester so my (4) credit cards are @ 100% max.  They will be repaid @ the end of August.  One lender is telling me to wait until they are paid off and the same is reflected in my credit report before having them pull my credit for pre-approval/qualification or whatever... but the other lender (the one suggesting d/p assistance) is telling me to go ahead and let him pull it now to get the ball rolling.  I don't know how the cards being @ max will affect me qualification wise...  but if I find a home now that was perfect, I would likely lose it if I tried to wait until Sept/Oct to get financing, don't you think?  So I am confused here.

3.     Because my salary is low now and will be much higher in 3 or so years, I am wondering if it would be okay to do a hybrid ARM (where payment is fixed for 3 or 5 years, then becomes adjustable) so that my payment is lower (thus affordable) for me... then refinance or sell the house before the AR kicked in? 

Any advice anyone could give would be GREATLY appreciated.  The main reasons I am looking to purchase now instead of waiting until I finish school are that 1) rental prices have skyrocketed in my area and 2) I will graduate with around 200k in student loans and the $1000+ per month payment will be reflected in my debt-income ratio @ that time (loans are deferred now).

Thanks!

Jen

Message Edited by legally_jen on 07-25-2007 10:58 AM

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[Anonymous]

I'm not a professional in the credit or banking industry, but I've learned a lot about credit and mortgages in the last year.  I'm planning on buying a home in 6-8 months and have been spending the last year attending various home buying seminars, cleaning up my credit and saving for a downpayment.

You may not qualify for downpayment assistance.  Most of the government-sponsored downpayment assistance involves some kind of ratio of median earnings.  There's one here in Dallas that I don't qualify for because I make just over the limit.  It offers up to $10,000 in downpayment and closing costs to families that earn up to 85% of the median (which I think is about $45,000).  It's really a program that is designed to help lower-income Americans own their homes and get out of the rental rat race. 

I don't know about what kind of law school you are attending or where you expect to find a job, but my law firm pays beginning associates $165,000 per year.  If you are lucky enough to be in that group, then I think you should just wait until you get your law job and then think about getting a house.  (And for those who are in medical school, I know that banks and mortgage companies have special programs for new doctors.)  If you work in a law firm too, then you know that partners/shareholders and senior associates understand that first-year associates are broke coming in.  It's part of paying your dues.  In fact, it's a kind of badge of honor.  It gives the partners/shareholders/senior associates a way to show off how well they've done.  It also signals to the law firm that you are hungry and ready to make a lot of money for the firm.

As for the impact on your FICO scores, the biggest impact is that you are at 100% utilization of your credit.  You need to get that down to 10% or less.  Just doing that will help your scores.  The charge offs from 2001 will drop off in 2008.  If you can wait until 2008 to get a home, your credit score will increase when they drop off (although they are so old they are probably not hurting you that much right now).  EDUCATION LOANS are part of FICO scores, but are easily explained to mortgage lenders.  I was told that education loans are not really of much use to mortgage lenders UNLESS you start to default on your educaton loans and then they become a MAJOR liability because education loans will not be excused by a bankruptcy and will be a primary lien on any assets you own.  So, when you graduate, make sure you pay your education loans.  However, most education loans don't start really impacting your credit scores until 6-8 months after you graduate.  (You have a bit of a grace period in which to find a job).

My advice to you is to be PATIENT.  Try to use less than 10% of your credit cards on a monthly basis (like for gas or something), save up money for a downpayment, and forget about buying a home until you are really in a position to pay for it and to maintain it.  If you've been reading about the subprime market problems, then you know what happens when people buy homes that they have no business buying.  It doesn't make you a bad person to rent; sometimes renting makes more sense.  If you are sincere about wanting to buy a home, then rent something modest, save every penny you can, don't buy too much on credit, and then buy a home after you graduate.  With the housing market in such flux right now, you will be able to buy a bigger and better home than you would otherwise be able to afford because housing prices are dropping and will continue to drop through 2008 and beyond (one report I read states 2011).  (In fact, that's why RENTS are soaring -- because people can't afford the homes they previously bought and have had to foreclose on so many of them.)  PATIENCE is what I would advise.  And that is sometimes the hardest thing in the world to practice, especially when you're about to see the end of the tunnel of a long and arduous education, you've sacrificed so much to get the education, and you are desperate to prove to yourself that all of your hard work means something, and what means more than a home?  DON'T BE EMOTIONAL ABOUT BUYING A HOME.  Be rational.  Be patient.  Get your credit affairs in order and some downpayment money in the bank, and then you'll get the home you really want at a great rate.  (And don't forget that one of the canon of ethics for lawyers is to be financially responsible.  Don't be irresponsible!)

AS FOR THE BROKERS WHO ARE TELLING YOU TO BUY, BUY, BUY NOW -- those people get their money when a home closes, so they are selling homes to people who can't afford them because they don't care if the mortgage defaults -- they've already gotten their money.  Buy only when you are ready to make the longterm commitment.  And, by all means, attend home buying seminars put on by your city, county and state.  Remember, you don't just buy the home.  You have to maintain the home (necessary repairs which always turn out to be costly), you have to furnish the home, etc., etc.  It doesn't sound like you can afford to own a home right now.  Be realistic about your situation and don't ever buy a home in a rush.

Message Edited by hopeful on 07-27-2007 12:40 PM

Message Edited by hopeful on 07-27-2007 12:41 PM

Message Edited by hopeful on 07-27-2007 12:44 PM

[Anonymous]

Yes you are correct, rental prices are SOARING!!!  Which is one of the main problems, I can no longer afford to rent in an area convenient to work/school.  I currently rent a modest "villa" in a semi-safe area and my rent is $1000 per month.  My lease is up @ the end of August and the owner is increasing the rent (along with all others in the Bay area) to an amount that I cannot afford.  And even if my rent stayed stable @ $1,000 per month, I will never be able to save anything for a down payment @ that rate.  After I pay bills for the month - and I'm talking general bills (rent/car/insurance/electricity/utilities/basic cable/internet), I have $500 per month remaining to buy groceries and pay for gas.  But here's the kicker... to find affordable rent in a semi-safe area, I am living in a location where it takes me 1.5 hours to get to work in the morning... then from work I drive 1 hour to school, then from school I drive 1 hour home.  So I spend anywhere from 3.5-4 hours PER DAY driving... and although I have a fuel efficient car (Altima), gas costs me anywhere from $100-$200 PER WEEK.  Doesn't take a genius to tell that either I can pay for gas, or buy groceries.  So the bulk of the time, gas IS what is on my credit cards.  Then I pay those bills off w/ my student loan refund 3x per year because I consider transportation to/from school, a school expense.

However, I can purchase a property in between work/school for $125-140k and have a payment @ $1,000 or below (whereas renting that property would cost me $1300-$1500 per month) - and I will be knocking off @ least half of the outrageous gas bill, thereby eliminating most or all of the credit card use. 

As for law school, I'm attending a good one that is costing me an arm and a leg... but the pay in my area is no where near $165k for first year associates.  First years @ my firm make around $80-90k not including whatever bonus they may get.

I have went to 3 seminars over the past year @ my school.  Two were financial planning seminars and 1 was a "future" planning seminar.  The thing that was constant in all 3, was that if we were planning to stay in this area, one of the most beneficial things we could do is invest in a home as soon as possible and not be throwing away money on rent.  (Seminars were all conducted by different groups/people who had no affiliation w/ one another). 

So I don't know if advice is a regional thing and it varies for different circumstances in different states or what - which is partly why I was seeking advice.  I do not live beyond my means (luxury wise) - you won't see me out shopping or blowing money @ nightclubs... and I have been very diligent in not having any late payments for several years (and the majority of the late payments I had 2000-2002 were because I broke my back and was in a wheelchair, unable to work for a substantial amount of time)...   that's why I am so aggravated about the late strikes w/ my car payment because I called and spoke to the lender not once, but twice, to verify information... and only now learn that I was given bad information by an employee who is no longer there and they will not work w/ me to remedy the situation. 

[Anonymous]

Believe me, we all understand. Everyone on this forum is here because they are concerned about their financial wellbeing and, especially, how our credit affects our financial wellbeing. In fact, our credit can affect our emotional wellbeing and our physical wellbeing. You've done great to maintain your current schedule. Don't give up yet. You have the unfortunate distinction of being in one of the tightest real estate markets, and when credit was free and easy and housing prices were appreciating, it made perfect sense to purchase a home as a student with the intent of selling it once you graduated and found a "permanent" job. It sounds like you may plan to stay in the area after you graduate, so you are probably thinking of buying a home now and staying in it after you graduate rather than selling it to move elsewhere. Be careful about what you are doing. You have to make the decision that is right for you in your situation at this time. Having made so many mistakes in my own life, I'm really anxious to keep young people from making their own mistakes. Whatever you decide, here are some things you should consider: 1. Move to a cheaper place close to school. Get a roommate. Get your rent down below $1,000 a month. You'll want a place close to school (as opposed to work) because you'll be spending more time at school than work (really!). Here's an idea: Budget Suites and other kinds of "hotels" are furnished, have electricity and telephone paid by the hotel (and in some places even internet access), have laundry facilities, and are reasonably safe. They have kitchenettes. Here in Dallas you can rent one by the month for under $600. San Francisco's are probably more expensive. But it would be sort-of like living in a dorm in that you don't have to worry about any bills except your rent. If I were a student, I would seriously consider doing this. You can put your own stuff in storage or have a yard sale. But you can't go to school and pay over $1,000 a month for rent plus additional for utilities. That's just going to expend a lot of your energy on stress that should be expended on your school. I guarantee you that the best thing you can do for your financial future is to do well in your last two years of law school. That should be your priority. Simplify everything else. In fact, try to find a job closer to your school. But school should be the most important thing in your life right now. If you have dogs or cats, of course, this option isn't going to work. 2. Stay away from ARMs in this market. ARMs are a good option when home prices are appreciating. Home prices are in a deflationary period right now. It has already hit Southern California, so I can only assume that it will reach the Bay Area sometime in the next year. Many people "qualified" for home loans using "piggy-back" loans (two mortgages at the same time) and ARMs so that their monthly payments would be manageable. That made sense at the time because home prices were rising and they could always refinance the mortgage. That's not true anymore. Before you can refinance, you have to get a new appraisal. There have been so many defaults and foreclosures that appraisals are going down. This is because part of the appraisal process is looking at comparable homes in the area and figuring out what they sold for and then figuring out what your home could sell for. Mortgage lenders who hold foreclosed homes are selling them at a discount because they want to get rid of the property and begin to recoup their losses. This depresses the prices of all the other homes in the neighborhood. I know of situations where a buyer purchased a home with an ARM for $266,000 and made timely payments for five years. Now the ARM is set to change and he's ready to refinance to a fixed rate. The problem is that all of his payments have been going to interest, and the mortgage remains at $266,000. Because of foreclosures and short sales (soon-to-be foreclosures), the value of homes in his area have declined. His home was appraised for $40,000 less than he owes on it. He can't get refinanced. His options are to pay 1.5 times what he used to pay now (with a payment next year of 2.0 times what he paid) or to walk away from the home. That's how prime mortgages are defaulting right now; we're not talking subprime, we're talking prime. This is happening in Dallas, a booming housing market, it's happening in Los Angeles, San Diego, Orlando, Phoenix, Las Vegas, Miami -- it's probably happening in San Francisco but no one is talking about it. So, stay away from ARMs. 3. You need to stop spending all of your student loan funds on paying off all of the credit cards and start using it to pay for your life. You simply cannot finance your life through credit cards. It will kill your credit. If you have a $1,000 limit on a credit card and you go out and buy something for $900, then you pay it off within 45 days, it still remains on your credit report as 90% utilization of your credit. FICO hates that. FICO wants to see you using $100 or less of that $1,000 credit limit. I think someone here on this board determined that the ideal utilization of credit is between 1-9 percent. So you have to break away from using your credit cards. Maybe don't pay off everything at once -- pay it off slowly and use the money from your loans to finance your education through cash. It will be painful, but it will be good practice to learn not to use credit cards. You say you are responsible, and I understand the desire to pay everything off at once, but you really need to use that money for future expenses and to pay down your debt. It's good that you haven't missed a payment, because FICO really penalizes you for every missed or late payment. 4. You have to have something in the bank for a downpayment. Even if all you have is a couple of thousand dollars, that's something the bank is going to want to see. They want to know that you are not using EVERYTHING for the downpayment. They want to know that you have something set aside to handle the inevitable emergencies. Don't even bother going to buy a home until you have something in savings. And remember that the banks always want at least two months worth of bank statements to prove that you are handling your money wisely, are not overdrawing, are not taking advantage of cash advances to meet everyday expenses, and are regularly saving. They want to see a pattern of responsibility. If you apply for an FHA loan (which I advise), they will want several months' worth of bank statements. 5. The seminars that I found to be most helpful are those seminars that cities/counties hold for people who are buying homes, usually for first time buyers or for buyers who are using the down payment assistance programs. These are not so much for "investment" as for explaining how the process works, what the mortgage lenders are looking for, and how to clean up your credit so that you qualify for a loan. You have probably been to special investment seminars for law students -- that's because when you become a lawyer you will be in an elite class and you will need to know how to handle your money. 6. Times are changing very fast. One year ago the smart thing was to buy a home before the prices put homes out of reach. Now, with the subprime market collapsing (Wells Fargo announced today they were suspending their subprime loans) and housing prices going south, the smart thing to do is probably wait a few months to see how things shake out and to take advantage of the lower house prices. That sounds like it's not feasible for you since you have to make a decision now. But, anything you learned in the last year is now suspect. No one had an inkling that any of this was going on. Well, some did but the media has been very quiet about this because....some of the biggest advertisers are home builders and the entire housing industries. News about poor home sales didn't sell papers and surely didn't please the advertisers. So, think very carefully about what you were told, when you were told, and what the situation is now. Educate yourself about the situation: go to europac.net for some good information about the state of financial affairs in the US today. Good luck on your search. You're already ahead of the game because you've learned to reason in law school. Now, just make sure that you make a reasoned, rational decision that fits you. But please, don't make a horrible mistake that could lead you to financial ruin in five years. Think long term even though your problem is short term. Good luck and best wishes.

[Anonymous]

Jen, I understand rental prices are soaring in your area, but you definately dont want to make a rush decision. You may want to explore the community lending options. I currently work closely with first time home buyers in the North east area for a large bank and specialized lending products for persons under a certain income are generally the most affordable products since it offers a low fixed rate at current market conditions with no pmi. The programs dont have a credit score minimum as long as you completed the 2 night seminar counceling session provided by the program. Usually your local comminity housing dept can suggest some centers since there probably are a few more local programs in your area. Talking to a few more brokers to weigh your options wouldnt hurt.