How did u come up with the money for your house down payent?

amother

Powderblue

Sun, Dec 27 2015, 9:36 am

With home prices thru the roof how are young couples coming up with their down payment money? I know a few couples that are just stuck and will have to rent for awhile.

amother

Seagreen

Sun, Dec 27 2015, 9:37 am

I think many pay mortgage insurance and empty out their entire life savings. The way I see it though I'd rather save that and property tax for a few more years and have the money for a down payment. Right now the difference in my small apartment and slightly larger one is too much to consider until I have another child but it's super hard to imagine wasting that much more on rent when I'd rather get closer to owning. If you learn the trick please teach me!

amother

Orange

Sun, Dec 27 2015, 9:43 am

We both work and make a decent salaries BH, lived in a cheap apartment in an undesirable (jewishly, not unsafe) area, and just saved saved saved.

Honestly though, if you're asking in general about young couples - most of our friends were given money by family for the down payment.

amother

Hotpink

Sun, Dec 27 2015, 9:43 am

I do mortgages.
1. Lots of families help. You would be surprised at the amount of money parents and grandparents give.
2. Lots of couples take loans with mortgage insurance allowing them to pUT down as little as 3.5% down.
3. Some have savings

Personally by my first house in used savings. Got a small 5k gift and borrowed the rest which I paid back.
My second house I used savings and lived with family for a year to save up.

My first house down payment was 69k. My second was 108k. Put down 20% both times.

PAMOM

Sun, Dec 27 2015, 9:52 am

Used all our wedding money for a down payment for a house in a no longer very Jewish community (but walking distance to an Orthodox minyan). When we moved "up," my parents lent us money to add to our profit and get a larger house. We paid back on schedule over a period of time.

amother

Orchid

Sun, Dec 27 2015, 9:57 am

We each came into the marriage with $10-$15k from working summers and wedding bar/bas mitzvah gifts. We lived in a small apartment, smaller then most people in our area did and were able to save more since I had a good job. We only put down 10% so that we were able to keep a cushion for repairs that would come up. we also didn't buy in NY. We did not get help from parents or grandparents unless you count the wedding and birthday gifts over the years.

amother

Silver

Sun, Dec 27 2015, 10:03 am

We did it alone no hand out gifts. We took a tiny 3 bedroom house and are at least paying for our own mortgage and not someone elses mortgage while renting. BH we got an amazing first time home owners mortgage rate but it took a very long time to get even this...

amother

Powderblue

Sun, Dec 27 2015, 10:35 am

It irked me a little when on a recent post a young couple said they were able to buy a house in Bklyn. The poster said that she came up with the money and it was given by "hashem".

amother

Denim

Sun, Dec 27 2015, 10:46 am

Got married at 23. Had been working since 21 making about 60K per year, living at home with minimal clothing and car expenses. So I had a decent amount saved up and was able to put down 100K.

Had I gotten married younger or without the job it would have been much more difficult.

(I also had a small inheritance from a grandparent, but I didn't have to touch that, it wouldn't have been enough for a down payment alone.)

amother

Khaki

Sun, Dec 27 2015, 10:49 am

We're putting down 3.5% so will pay PMI.
We saved and borrowed as the closing costs are a nice amount.
Our down payment plus closing is about $25,000
We're buying because it's cheaper than renting now.

I'm not buying in Brooklyn as there isn't a house there that I could remotely afford!

amother

Coffee

Sun, Dec 27 2015, 10:50 am

After more than a decade of being married, we found a modest apartment in our area and one set of parents told us that they would love to help us with x amount of money. We had a bit of savings put away as well. So it was both us as the married couple and one set of parents. Without their help we never would have been able to buy what we did.

amother

Seagreen

Sun, Dec 27 2015, 11:09 am

amother wrote:

This is the kind of math that just doesn't add up for me and I can't figure out why. I got married a little older than you and making around 100k since a few months before getting married. I had about 30k in savings before getting married. Since then maybe up to 40k. Between rent, insurance and all expenses associated with not being eligible for any government programs it makes it impossible for me to save more. Oh, and student loans. I'm making more than lots of my friends and their husbands combined but living in more cramped quarters and have no idea how we'll make it to 100k for downpayment (that's about 20% plus closing costs where I live).

amother

Wine

Sun, Dec 27 2015, 11:44 am

we borrowed (close to $200k) from my parents and are still paying it back (with interest). I kind of wish we hadn't (borrowed the money), it hangs over our heads and we're not gonna be paid back for another 5 years (and then it'll be time to marry off our own children so I guess that's what the "extra" $-that will no longer be going to paying back my parents-will go. . . .)

amother

Denim

Sun, Dec 27 2015, 12:01 pm

We put down 100K on a 300 K house. so the closing costs were included plus we put down more then we had to.

I had very little expenses when single. Drove a 3K car, paid for oil changes and repairs and some of my own clothing and shoes and vacations. (but this was OOT so didn't dress expensive). My parents were very generous in general.

I also had worked prior to my job. (after school, Sundays, summers).
After we were married we lived in a small furnished temporary apartment for 1 year = 600\month rent. and I still had my old job so our earnings was more then we needed for living expenses. + DH was also working (making much less then I was).

(I didn't have any student loans which also helps a lot. I got my degree from a Jewish one year school - cost about 10K in total, maybe a bit more with summer courses and high school courses and cleps. My parents paid for it (very grateful for it) )

amother

Orange

Sun, Dec 27 2015, 12:19 pm

amother wrote:

It doesn't add up because you're not taking into account that there's a HUGE difference between making 60k and having zero expenses (no rent, no food, etc.) and making 100k and having a husband, rent, Shabbos food costs, student loans, any expenses related to having kids (if you have) etc. The first scenario, the one you quoted, will enable you to save a significant portion of money, 50k or more, over a period of a few years.

amother

Babyblue

Sun, Dec 27 2015, 1:19 pm

We are in the process of buying right now. Half is what we saved up, ILs gifting us the other half. Our own savings was enough for OOT, and we were looking into communities, ILs offered to help us afford a house in NY so we could stay close by and we took the offer. It is very generous of them, and they are also not the type to have any sort of expectations or strings attached. If my parents would have made the same offer, we'd have turned them down because they would use it to dictate all sorts of stuff.

amother

Chartreuse

Sun, Dec 27 2015, 1:26 pm

We saved all of our wedding money (about 12K, but then used 4K o that to buy a car) and we were lucky enough t rent a rent controlled apt for 4 years. But we had 3 kids in those years. We took a loan form our 401K and only put down 10%. We paid back the 401K over 10 years ad actually just took a new 401K loan to buy a new house.