Buying a home – down payment?
July 15th, 2007 // 2:19 am @ admin
I am 23 and have about $5,000 in savings. I also still live with my parents, and I’ve been thinking of moving out for nearly 2 years now. I work full-time. Rather than rent, I would prefer to buy a home or a condo.
There are several condos in my area, the cheapest being around $100,000 (I live in New Jersey, where home prices are through the roof). I saw a 1BR/1 bath near me and was wondering if I could possibly purchase it now.
Would I be able to use my savings to purchase something now? Or do I need to wait until I have 20% ($20,000) saved up? It would take me at least 2 years to save that much money, and I don’t want to wait that long. I’ve heard of incentives for first-time buyers where you put down a very small down payment, as well as programs where you don’t put ANY money down.
Thanks for any advice.
Stan – they probably would offer (which I’d be very grateful for), but I’d rather not take their money if I can help it.
Post Footer automatically generated by Add Post Footer Plugin for wordpress.
Category : Questions
Sean
3 years ago
If you were to put no money down, here is a sample of what your monthly payment would be:
Monthly payment: 30 Years (standard)
Interest rate: 5.750%
Loan amount:$ 100,000.00
$ 583.57 a month
You have to be sure that the monthly payment falls within your budget and that you can handle special circumstances like temporary loss of income or emergency expenses like car repairs and healthcare which cause you to miss a mortgage payment.
Jason K
3 years ago
You do not have to wait. Go to your bank tell them you want to be pre-approved for a home loan. They’ll make you fell out some paper work. Tell them you want federal aid for first time home buyers. They’ll usally match your down payment and as long as you stay in your new residence for 2 years you,ll get that money for free. The bank will let you know how much you qalify for so you don’t become house poor.
yR WELCM
stan c
3 years ago
I would rather you wait because the $5000 won’t even over your closing cost. Also, as you know living in Jersey is not cheap. Do you think your parents can help you in any way?
godged
3 years ago
No worries, there are first time home buyer programs that will allow the seller to contribute to your closing costs. This comes off their bottom line, so you are going to have to be at or near full price for this to occur.
Some of the FTHB programs are no money down, so look into those.
Find a lender in your area (no ‘net lenders please) who is familiar with the FTHB packages that may work for you.