Buying a home/moving out/taking out a loan.

[Eaglestrike]

Well, more like a cheap ass condo/townhouse, but whatever.

So I'm employed regularly now, working 40 hours a week, having trouble with the parents so I plan to move out as soon as I can. I'd prefer to attempt to own a home than just throw all my money away at rent (granted throwing a lot of money at interest isn't any better). My paychecks only show I make around $400/week, I make closer to $5-600/week though (only claim enough tips to make roughly minimum wage). As well, I'm also a shift manager (driving is more money so I told my boss I prefer that) and will eventually move up the ranks and such.

Anyway, so I was thinking of buying an $80-100k home and then renting out a bedroom/bathroom to someone to easily afford payments on that. My banks online site lists a $100k loan at a 30-year fixed rate can be as low as $500 a month, and I can likely throw $700-900 a month at a mortgage/rent solo, if I rent out a room, I could make additional payments and speed up the process.

The biggest problem I see currently, aside from what I'm sure people will start bringing up in a few posts, is that with no down payment and with limited pay stubs showing less income than I have, I doubt I'll get a loan with the bank. Is there any way around this?

What are my best options here? I'm likely going to the bank regardless tomorrow to see what they say directly.

A) Get a mortgage and live in a piece of crap as I pay it off.
B) Find someone to share rent with before looking to get a loan and maybe go to the bank together...? I have no idea who I'd do this with, it'd likely be a stranger.
C) Rent somewhere and just put a few hundred dollars a month away to use as a down payment down the line.
D) All of the above suck, stick with the parent and deal with whatever their bullshit is and save up more money faster.
E) ???

[Headspace]

Deal with the parent and bank yo shit.

Need more information on shit parents are giving you.

[hey]

Financially, D makes the most sense. If you can stand to live with them for a few more months you could probably save up enough for a down payment. Otherwise it depends on a lot of different things.

[Eaglestrike]

Deal with the parent and bank yo shit.

Need more information on shit parents are giving you.

Girlfriend has ragecrazy brother, moved her out to a friends place, she's 2 hours away from me now (she cannot drive). I work 5-6 days a week, one day a week off at a time at most, so I rarely see her. Paying $300/month at home, offered to double it to $600 and potential for more (to make additional mortgage payments) but mother isn't having it. My basement has been under construction for over 2 months and she's been in no worry to fix it up and expects me to be paying rent while I sleep on a couch and have no doors to my room. Mother is control freak, everything has to be done her way, if not, she'll either do it for you and bitch at you endlessly or just bitch at you endlessly+1. My mother is essentially the stereotypical woman people warn you/joke about, but even worse.

2nd option is my father, he has a condo he owns (well, pays mortgage on). He had been letting his gf's daughter live there but apparently between the two of them they wrecked the place (no dishwasher/bed/fridge, carpet fucked up, etc.) I offered to save up the money to fix it all up and then pay him rent, he's flatly saying no with no reason about it. He lives with his gf and obviously never goes to his condo at all.

Option D, once my basement finally does get fixed, will be livable, but I'll essentially be in a long distance relationship until I get out of it.

[archibaldcrane]

With no down payment, you won't be able to get a mortgage. If your parents aren't willing to help give/loan you money for at least 5% down and closing costs, then put up with their shit and save your money.

What are your credit scores? (use creditkarma.com for a quick 100% free reference - it's only one bureau but it's helpful).

Remember if you're talking about a condo or townhouse, there are likely HOA fees monthly on top of your mortgage, plus you need homeowner insurance and will have to pay property taxes. It adds up, and $500 a week can disappear quickly.

To get an idea of current mortgage rates and monthly payments/fees, use https://www.google.com/advisor/mortgages - click New Home and enter in your values.

I'm 4 offers deep into buying my first place, it's a pain in the ass.

[archibaldcrane]

I just saw you're already paying rent for a shitty situation at home. I don't know what Frederick, MD apartment rental prices are like, but it sounds like you may just want to take that money and find your own place to rent while you save up.

[lolBST]

Banks offer mortgages with zero down now pretty easily unless you have a crappy credit score. Bought our first house back in July and had 0 down on it. Big thing you need to take into account as to what you can afford to is the bills/insurance/HOA. That $500/month the bank is quoting you is probably pre-HOA/insurance/taxes. Our mortgage on a 153k house is a grand a month after taxes/HOA/etc, so I'd bet your real monthly is gonna be closer to $700 or $800 a month.

Also don't underestimate electric costs on a house, ours is about 2400 square feet and runs around $190 a month over the summer because of the AC.

[lolBST]

I agree with the rental suggestion too, grab a rental with relatively short term/month to month while looking for house to buy, and get out of your parent's place.

[Eaglestrike]

With no down payment, you won't be able to get a mortgage. If your parents aren't willing to help give/loan you money for at least 5% down and closing costs, then put up with their shit and save your money.

Yeah since looking into it, this is what I'm most worried about. I mean I can do like $1000 down payment but yeah...

What are your credit scores? (use creditkarma.com for a quick 100% free reference - it's only one bureau but it's helpful).

699, fair.

Remember if you're talking about a condo or townhouse, there are likely HOA fees monthly on top of your mortgage, plus you need homeowner insurance and will have to pay property taxes. It adds up, and $500 a week can disappear quickly.

To get an idea of current mortgage rates and monthly payments/fees, use https://www.google.com/advisor/mortgages - click New Home and enter in your values.

I'm 4 offers deep into buying my first place, it's a pain in the ass.

This is why the idea was to get a 2-3 Bed/bath place and rent it out for another $500/month. There's little shortage of $100k townhouses/condos in my area.

[archibaldcrane]

Banks offer mortgages with zero down now pretty easily unless you have a crappy credit score.

I didn't know they were doing 0% down at all anymore, even with an FHA loan - but I guess so. Weird.

edit: was it a USDA or VA loan?

[lolBST]

Got mine for 0 down from BB&T, my score was up around 750 if that helps.

[archibaldcrane]

Got mine for 0 down from BB&T, my score was up around 750 if that helps.

Fixed or ARM?

[lolBST]

Fixed 30 year at 4.75%.

[archibaldcrane]

Interesting. I'm putting 20% down myself, I thought the 0% down mortgages were completely gone after the housing crash.

themoreyouknow.jpg

[ArchDizzle]

Without 2 years of verifiable income most places arent going to finance you, or if they do expect a shitty rate or more expected DP. If you end up buying an older place to get into your price range you need to have a decent nest egg for when unexpected repairs come up.
Something serious like electrical/plumbing/etc can be a nightmare financially

[Eaglestrike]

I see a couple condos listed where my dads condo is (same kind of building, just another address) and the area/building isn't bad at all. Unfortunately both of those are contract pending so they're already being bought. I'll go into the bank to see how much they would consider lending me and then start checking out areas personally.

[Darus Grey]

I think buying at all is completely out of your price range for the time being. $500mortgage +expenses of owning a home is going to put you at almost 1/2 your monthly income.

That's a bad idea.

If you really want to buy look for foreclosures in the 30-50k range instead.

[Eaglestrike]

I think buying at all is completely out of your price range for the time being. $500mortgage +expenses of owning a home is going to put you at almost 1/2 your monthly income.

That's a bad idea.

If you really want to buy look for foreclosures in the 30-50k range instead.

Is there any place I can go to see all the extra expenses of owning a home? I don't know where to go to see how much tax/insurance/etc. would be depending on housing cost. I swear I saw a calculator for this the other day but I can't find it now.

[izembo]

think about this...all the stuff you take for granted too. trash cans, plates, silverware, toilet paper, you will be buying it all. not to mention as someone said, electricity, water, gas(possibly depending), trash at some places, then property taxes, homeowners associations, and plenty more

[archibaldcrane]

Is there any place I can go to see all the extra expenses of owning a home? I don't know where to go to see how much tax/insurance/etc. would be depending on housing cost. I swear I saw a calculator for this the other day but I can't find it now.

Ask your dad - he's been doing all of it for a long time in the same situation you want to get into. Ask him what his insurance, HOA, property taxes are.

Here's property taxes in Maryland. http://www.dat.state.md.us/sdatweb/taxrate.html