What's better...larger down pmt? Or strong rental history?

[happy0510]

I am looking to purchase in a year...I want to move out (of parents house) now however, to get a feel for a bigger payment and also show the bank I can do it.  Would it be wiser to just stash the cash away for a larger down payment instead??

Message Edited by happy0510 on 03-31-2008 03:18 PM

[Anonymous]

How about if you start paying your parents rent, and document it with a rental agreement and cancelled checks? If your parents are willing to, they could stash all that money in a savings account for you and gift it back to you for your down payment.

I'm not completely clear on the guidelines for gifts for down payments, but it's worth a thought maybe.

[happy0510]

Thaks Des...unfortuantley....I live with just my Mom who is well in over her head....I already do give her a rent payment...$500/mo....but thats a joke in California!! I'm looking at $2500-3K/mo for a mortgage!! But if I put more down...less...so i'm kinda stuck with whether I should save for a larger down or have the history of a larger rent payment!!

[ShanetheMortgageMan]

Most loan programs don't need verification of rental history - and if you aren't obligated to pay rent, like living rent free with relatives, etc., then it's not needed either.