First time home buyer, save for down payment or pay down debt? - federal aid for first time home buyers
We make a decent income, along with two options, which we for the next year, apart from a deposit of $ 20K or the assumption of certain liabilities ongoing credit cards and personal loans, equal to about $ 10,000 together. We also have too much to qualify for a state / federal assistance payments.
We rent for 3 years, so we have a good idea of what we can and what the monthly salary can not have. We pay our debts slowly, but we prefer to have completely disappeared and a new start with our mortgage.
By focusing a lower debt / income benefit in the amount of the mortgage, which is more in our region, but we do not know how the banks are open for 100% financing. In addition, by changing our $ 20k monthly payment of only $ 50 I'd rather the money elsewhere, if possible.
What are our options? Thank you!
Monday, January 11, 2010
Federal Aid For First Time Home Buyers First Time Home Buyer, Save For Down Payment Or Pay Down Debt?
4 comments:
I would say it depends on if you have a timetable or not.
My wife and I were almost exactly the same decision. We started with more debt, but pay for only about 1 / 2, which you represent.
We were constantly on buying a home in the next few years and wanted to save for the payment of a deposit, but then he discovers there is also a baby, we decided to go on and try to d get a house. With the size of the house, which we will buy the payments are not a problem and wanted to enter the house instead of a baby while living in a 3rd Floor (no fun for the woman if she's largest at the beginning).
We left the FHA allows 3% down. There are some other advantages, but it is better for you, in my opinion. A friend of the family, we are not even, he told us to go ahead and start saving for our down payment. She said that the debt ratio was (not at a point when viewed with our overall credit situation) that would make a difference in pay.
Even in our situation, we had an appointment in thethis element should be out of the house, it was in our interest, save for a down payment.
Ideally, I would say, take some time and get your debts disappeared or nearly disappeared, and then save for the down payment, but it is difficult, I agree. Especially when we know that each month your rent Dopping essentially lost money.
There are at least 5% to put down. 100% financing is fairly non-existent.
How to buy a house? If you need to save $ 20K and $ 10K, it still leaves $ 10K for a deposit, by 5% to 200 thousand dollars.
Pay $ 10,000 of unsecured debt. It gives you a much better credit score and debt / income, so that qualified for the loan products of better quality. You also have the extra cash from (the money they save about 10,000 U.S. dollars to pay the debt) for a down payment, closing costs, new home products, etc.
One thing that the lenders in search of their outstanding debt than the original loan amount as a debt. For example: Suppose you have a car loan for $ 20,000, but only $ 2000 (which has almost paid). This debt is $ 20,000 as the original loan, not the $ 2000 we still have it. No, no, no meaning. But is that how they do it. And that's one reason why the repayment of debt before buying a house is better than saving species.
They always find loan products that you no money down (or little) for a mortgage and a second for the down payment (to keep it less than 80% LTV is the first one) to avoid PMI. When IBuy or finished, contact get a mortgage pre-qualified brokers. During this time you can see that all loan products can accommodate you. However, to pay unsecured debt is the best shot.
Well, you have to decide is difficult in areas such as this. Listen, I did try my hand at her job, help you decide. I want to rent to stay and pay my personal debts and then save could afford a down payment on a house. As a tenant is not a substitute for everything that goes wrong in your life and not worry about paying property taxes or maintenance in your life. Well, when all debts are paid, you will feel better, not because of the debts of all, and if you have saved, you can not make a new home on a budget stay in better, so much on the head. Rent has less to worry about landlords. Take your time and must have to do with patience all the time, what will happen as you wish it to be decided.
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