% of net income for housing
03-19-2008, 10:26 AM
#62
My lender was able to beat any FHA program, piggyback, etc. with an LPMI because of my wife and my credit scores, and because we were buying so much under our "purchase potential" ($400k? Methinks no).
We bought a foreclosure from Countrywide. We got a killer deal on price, they paid all closing cost, and paid our taxes and insurance for the first year, as well as owners title insurance, AND they fixed some stuff in the house before we took possession
We bought a foreclosure from Countrywide. We got a killer deal on price, they paid all closing cost, and paid our taxes and insurance for the first year, as well as owners title insurance, AND they fixed some stuff in the house before we took possession
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03-19-2008, 10:30 AM
#63
nice going ben...i bought mine from the US marshalls, i am doing all the repairs though, it wasnt a foreclosure though, it was a seizure 4 years ago
but i dont mind doing the work, i enjoy it, only thing that sucks is that i have not had time to work on my car any...
if you dont mind, what kind of equity were you able to walk into? if youd rather not say i understand...no biggie, just trying to get an idea
but i dont mind doing the work, i enjoy it, only thing that sucks is that i have not had time to work on my car any...
if you dont mind, what kind of equity were you able to walk into? if youd rather not say i understand...no biggie, just trying to get an idea
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03-19-2008, 10:39 AM
#64
The appraisal on move-in date was only 15k above purchase; however, once I did a bunch of my own clean-up, updating, etc., the appraisal was $42k higher than my purchase. Similar house down the street was put on the market the day my for sale sign came down for $40k more than my purchase. Conservatively, I'd say I have ~$25k-$30k equity if I were to sell today. Fortunately, houses are still actually selling in my neightborhood (well, the few that are for sale).
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03-19-2008, 10:48 AM
#67
thats good, i was able to do something similar, i am spending a lot on it though and i hope to walk away with at least 15K after realtor fees and taxes etc....
charlotte market is still up about 3%, so i want to hurry up and put it on the market asap, and get this, its walking distance from an elementary school and most the neighbors are original owners in a 20 year old neighborhood...i am really hoping that will make a difference to potential buyers...
charlotte market is still up about 3%, so i want to hurry up and put it on the market asap, and get this, its walking distance from an elementary school and most the neighbors are original owners in a 20 year old neighborhood...i am really hoping that will make a difference to potential buyers...
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03-19-2008, 12:06 PM
#70
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The appraisal on move-in date was only 15k above purchase; however, once I did a bunch of my own clean-up, updating, etc., the appraisal was $42k higher than my purchase. Similar house down the street was put on the market the day my for sale sign came down for $40k more than my purchase. Conservatively, I'd say I have ~$25k-$30k equity if I were to sell today. Fortunately, houses are still actually selling in my neightborhood (well, the few that are for sale).
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03-19-2008, 01:11 PM
#71
Haha, I wish. Wife didn't like the location of that one. The house we ended up with is nicer, but the garage setup isn't as nice. We have a drive-under two-car...so no room for a lift, but the whole basement could be the garage. Right now I have 3 cars in it, plus two workshop areas...one for household, the other for car stuff. You're welcome to come by sometime.
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03-19-2008, 01:13 PM
#72
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renting may make more dollars and sense in some housing markets right now.
my mortgage is about 25% of my net. If you have other debts- car, credit cards etc then you need to subtract that from your net before calculating how much you can afford. don't be a dumbass and buy more than you can afford. 25% is a good max but in some areas like NOVA or SF or NYC you may have to spend more for the "privilege" of living in that area. deduct that from your entertainment budget
my mortgage is about 25% of my net. If you have other debts- car, credit cards etc then you need to subtract that from your net before calculating how much you can afford. don't be a dumbass and buy more than you can afford. 25% is a good max but in some areas like NOVA or SF or NYC you may have to spend more for the "privilege" of living in that area. deduct that from your entertainment budget
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03-21-2008, 03:24 PM
#80
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Rent is currently 22% of our net take-home after taxes. We're looking at houses now, preferably ones with garages (it's common to NOT have a garage around here) so I can stop keeping car parts in the bedroom and living room. I've run the numbers based on our actual expenditures and figured out what I think we can reasonably afford, and it works out to the ballpark of 28-30% of net. But I have some built-in safety margin to accommodate future offspring-related costs.
Once you start getting to 35%+ of your net, you are getting towards "house-poor" which is a bad spot to be if you don't have significant savings, especially with the market how it is now. In NoVA, 60% of homes on the market are either short sales or foreclosures, so there's just not going to be much rebound in prices for a couple years. It is one of the worst markets in the country right now, so yours may be different.
I would have thought that banks would be more careful about how big a loan they'd approve you for these days, and was a bit surprised when we were approved to buy waaaaay more house than I think would be prudent in this market. Maybe I'm a pessimist but I think the economy is going to be in the ******* for a few years, so it's more important now to stay comfortably below that 35% figure since house prices aren't rocketing upwards like they were 5 years ago. Everyone's budget is different, but for me, going to 40% of net would mean a lot of Top Ramen and a big dent in the fun budget. If you don't have any hobbies that cost money (nobody on this forum) and are content with dial-up internet and watching over-the-air TV, then you can buy more house.
Once you start getting to 35%+ of your net, you are getting towards "house-poor" which is a bad spot to be if you don't have significant savings, especially with the market how it is now. In NoVA, 60% of homes on the market are either short sales or foreclosures, so there's just not going to be much rebound in prices for a couple years. It is one of the worst markets in the country right now, so yours may be different.
I would have thought that banks would be more careful about how big a loan they'd approve you for these days, and was a bit surprised when we were approved to buy waaaaay more house than I think would be prudent in this market. Maybe I'm a pessimist but I think the economy is going to be in the ******* for a few years, so it's more important now to stay comfortably below that 35% figure since house prices aren't rocketing upwards like they were 5 years ago. Everyone's budget is different, but for me, going to 40% of net would mean a lot of Top Ramen and a big dent in the fun budget. If you don't have any hobbies that cost money (nobody on this forum) and are content with dial-up internet and watching over-the-air TV, then you can buy more house.
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