How can I buy a house?? NO Savings :(

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amother

Lavender

Mon, Oct 23 2017, 11:51 pm

I am a single mother with a very low income job. I may make more eventually but it can take 5-10 years. I am throwing away rent every month but I can't qualify to buy a house as my income is just enough for rent and that is about it.

I really want to own as it will save money and I've been renting for years and years and years.

What can I do?

amother

Orange

Mon, Oct 23 2017, 11:55 pm

Can you move out of NYC?

Where I live you can buy a smallish house for about $60,000. There are also programs to help you with a down payment.

amother

Ruby

Mon, Oct 23 2017, 11:58 pm

you aren't throwing away money - you are paying to put a roof over your and your child's (children's) head. That is a good use of money.

regarding purchasing property. You will need someone to lend you the downpayment, and co-sign your mortgage.

notshanarishona

Tue, Oct 24 2017, 12:04 am

- move somewhere with cheaper rent
- find gemach/family member to help with down payment
- look into first time home owners grants

It's impossible to buy without some form of down payment but how much can vary greatly.

amother

Mustard

Tue, Oct 24 2017, 12:54 am

To buy a house, you don't only need money for a down payment, you need some money in reserve for repairs and money for maintenance, which presumably you aren't paying in a rental. Better to rent securely than to own but to be so strapped that you're in danger of losing the house.

Kol hakavod to you for providing for your family and for wanting to do better. It sounds like right now, renting is what's best.

amother

Saddlebrown

Tue, Oct 24 2017, 1:54 am

amother wrote:

Can you move out of NYC?

Where I live you can buy a smallish house for about $60,000. There are also programs to help you with a down payment.

since you're anon, would you mind sharing the location? I've looked into so many areas and not found anything habitable below $100k-$120k

seeker

Tue, Oct 24 2017, 2:04 am

amother wrote:

This.
Owning a house sounds nice in theory but practically speaking I know I'm better off renting. I am better off with having someone else handle the maintenance and repairs and all that. I don't need more things on my head. Sure it's sometimes painful to pay the rent, but you don't stop having to pay when you have a house, and you have no guarantee that it will be worth much in the future.

Better to work on building up those savings first because you could wind up needing them for all sorts of things, if you're serious about having NO savings. Once you have enough savings to cover you in case of a reasonable level of emergency (I've heard one recommendation being three months' worth of your salary in case you need to leave work for some period of time) then you can start building up a separate savings account for things like home buying. Continuing to rent until you're in a better position is not necessarily a waste of money, much like continuing to buy food that you consume and then need more of is not a waste of money.

Definitely holds even truer if your rental location has advantages (financial or otherwise - supportive family, job availability?) that an affordable buying location doesn't.

amother

Forestgreen

Tue, Oct 24 2017, 2:56 am

Daven to Hashem

amother

Ginger

Tue, Oct 24 2017, 3:47 am

amother wrote:

Can you move out of NYC?

Where I live you can buy a smallish house for about $60,000. There are also programs to help you with a down payment.

$60,000 down payment?

amother

Brown

Tue, Oct 24 2017, 10:51 am

There is no easy trick, unfortunately. You need money for a down payment, and then you need a certain income or assets so that banks will even consider giving you a mortgage. If you want to buy a coop it's even harder. The coop board will want to see that you have enough income and/or assets in order for you to get board approval.

Pretty much it sucks, we are in the same boat...... The answer, MOVE if you can to a cheaper area. But I know that's no always feasible.

amother

Orange

Tue, Oct 24 2017, 10:53 am

amother wrote:

$60,000 down payment?

No!!! For a whole house. A small one though--2-3 bedrooms.

amother

Ginger

Tue, Oct 24 2017, 10:54 am

amother wrote:

No!!! For a whole house. A small one though--2-3 bedrooms.

This makes me feel hopeful. Can you say where this is located? I'm interested.

amother

Orange

Tue, Oct 24 2017, 10:55 am

amother wrote:

since you're anon, would you mind sharing the location? I've looked into so many areas and not found anything habitable below $100k-$120k

I live in northeast PA, ie Scranton area.

simba

Tue, Oct 24 2017, 10:59 am

Sorry dear. You just cannot. it is irresponsible to put yourself in such a predicament.
Try to put little bits in savings and once your income pocks up hopefully you will be able to qualify for a mortgage.

Rent is not thrown out money if you are living there for now.

amother

Ginger

Tue, Oct 24 2017, 11:01 am

amother wrote:

I live in northeast PA, ie Scranton area.

Thanks!
Would you have realtor contact info?
How cheap are rentals? 3 br, 2 bath?

amother

Firebrick

Tue, Oct 24 2017, 11:01 am

I'd just like to echo others when they say that houses don't stop costing you.

There are repairs and maintenance even on a brand new home. Stuff like lawn mower service needs to be done by others if u can't do it yourself.

There are taxes which make you keep paying even though you own the home.

I know its supposed to be the American dream, but its not always that simple.

Not trying to crush your dream, just trying to make you feel a bit better if you can't achieve it right now.

petiteruchy

Tue, Oct 24 2017, 11:06 am

Buying is not always better. In fact, in high cost areas, it's often not. Renting is not throwing money away, when you calculate the costs of interest on your mortgage, maintenance and factor in inflation, renting is often not only the more practical solution, but in fact the more financially secure route.

That said, you should be saving and investing. If you are not, you are going to have financial problems for life, regardless of whether you continue to rent or own.

amother

Sapphire

Sat, Oct 28 2017, 8:46 pm

amother wrote:

Thanks!
Would you have realtor contact info?
How cheap are rentals? 3 br, 2 bath?

I grew up in Scranton-great place to raise kids!!! Grass, small community, great people etc!
U can rent a 3/4 bedroom for about $600 a month (plus utilities)

rikki 1

Sun, Dec 31 2017, 8:15 pm

Where can I get grant to help with down payment or closing costs?

amother

Ginger

Sun, Dec 31 2017, 8:26 pm

amother wrote:

I grew up in Scranton-great place to raise kids!!! Grass, small community, great people etc!
U can rent a 3/4 bedroom for about $600 a month (plus utilities)

Seriously? I'm very interested!
Whom can I speak with? Where are these apartments listed? Is there a community bulletin board? Is this in a city or suburbs?

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