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Forum -> Household Management -> Finances
Did you buy a house without borrowing money?
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amother
Amber


 

Post Tue, May 24 2016, 12:39 pm
Just curious...
Did any of you ppl buy a house, (im not talking about a house 500k and below) without having to borrow money? and if you did, did you borrow on interest or did you manage to borrow without avoiding that cost?
I just bought a house for $975,000, and although I have a nice down payment put away, I still cant see myself managing without borrowing some money...but I have no idea where and whom to turn to?
any ideas?
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allthingsblue




 
 
    
 

Post Tue, May 24 2016, 12:45 pm
Did you think about this before buying your house?
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asp40




 
 
    
 

Post Tue, May 24 2016, 12:46 pm
Borrowing as in getting a mortgage? Or borrowing from people for your down-payment?
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cm




 
 
    
 

Post Tue, May 24 2016, 12:50 pm
Sell the house and buy one you can afford.
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amother
Coral


 

Post Tue, May 24 2016, 12:52 pm
How did you get a mortgage without showing sufficient income?
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causemommysaid




 
 
    
 

Post Tue, May 24 2016, 12:53 pm
how did you get approved for a mortgage that high without the income to support it?
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southernbelle




 
 
    
 

Post Tue, May 24 2016, 12:53 pm
What country are you in? The procedures differ
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amother
Lemon


 

Post Tue, May 24 2016, 12:56 pm
I"m assuming you mean for your down payment.

Are you approved yet for a mortgage? They will look over your finances and determine if they approve you. They may also monitor your accounts to make sure you don't get unaccounted for money.

We were given a small loan (interest free) from my in laws. It was actually more money then we needed for our down payment, but they wanted to help that our monthly payments be smaller.
First they transferred a small percentage into our bank account. The mortgage company saw it and had my in-law sign that the money was a gift and we didn't have to pay it back. My in-laws signed and gifted us the money. The rest of the loan they just gave us a check the day of the closing so that money was never caught by the mortgage company.
I'm telling you this so that if you do get a loan from family you should be careful about how it appears in your bank account. (while keeping everything legal)

You can also get loans toward your down payment - but for that you need to take out an additoinal insurance against your loan. This will be an additional monthly payment.
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amother
Yellow


 

Post Tue, May 24 2016, 1:08 pm
We got a mortgage.
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Jeanette




 
 
    
 

Post Tue, May 24 2016, 1:10 pm
We bought a house without borrowing additional money beyond the mortgage itself. But the price of the whole house was less than a typical down payment for a house in Brooklyn.
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watergirl




 
 
    
 

Post Tue, May 24 2016, 1:12 pm
amother wrote:
Just curious...
Did any of you ppl buy a house, (im not talking about a house 500k and below) without having to borrow money? and if you did, did you borrow on interest or did you manage to borrow without avoiding that cost?
I just bought a house for $975,000, and although I have a nice down payment put away, I still cant see myself managing without borrowing some money...but I have no idea where and whom to turn to?
any ideas?


Echoing what others asked, without knowing what country you are in, its hard to know how it works where you live. But, assuming you are in the States because you used a dollar sign, how were you able to to BUY the house with out having a mortgage already in place? The term that you used, "buying" means that you've already paid the down payment money that you mentioned, and actually PAID for the house. If you have not yet done so, then how did you buy it? In the States, if you borrow from a bank (thats what a mortgage is), there is always interest. Thats how banks work.

You have obviously left out a lot of information and were all very confused. Can you help us out?
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amother
Seagreen


 

Post Tue, May 24 2016, 1:14 pm
amother wrote:
Just curious...
Did any of you ppl buy a house, (im not talking about a house 500k and below) without having to borrow money? and if you did, did you borrow on interest or did you manage to borrow without avoiding that cost?
I just bought a house for $975,000, and although I have a nice down payment put away, I still cant see myself managing without borrowing some money...but I have no idea where and whom to turn to?
any ideas?


This is exactly why there was a recession in 2008. People buying houses they couldn't afford.

I'm trying to figure out why this post bothers me so much. I think it does because I feel like we as a community suffer because of this type of recklessness and end up having to provide support in situations that were preventable. Who buys a million dollar house without thinking it through?
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amother
Emerald


 

Post Tue, May 24 2016, 2:18 pm
I have a relative who works for the court system in a heavily Jewish area. Unfortunately, there are daily cases of Jews losing their houses to foreclosure because they bit off far more than they could chew in terms of affording a house.

Please be careful not to overextend yourself! If you don't have a cushion to pay the mortgage in the face of unemployment or illness or other financial setbacks, then you can be in real danger of losing your house.

And yes, we bought our house on our own for around $700,000 with a mortgage but no other borrowing. We were able to do so because we were extremely frugal for the first few years of marriage. We saved all our wedding money and every year end bonus and didn't go on fancy vacations or buy much takeout. We lived in a tiny studio apartment and waited a couple of years to have children.
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amother
Pink


 

Post Tue, May 24 2016, 2:24 pm
As a rule of thumb, if you don't have the down payment , you're going to have a hard time affording the house. Maintenance, taxes, utilities, etc on a big house are high. You need some cash reserves for emergency repairs, too. If you haven't closed yet, please reconsider.
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amother
Salmon


 

Post Tue, May 24 2016, 2:53 pm
We bought a house for $775,000, and we had saved for the down payment. We calculated the monthly mortgage+taxes and made sure we can afford it before we went ahead with the sale.

I don't understand why someone would buy a million dollar home if they can't afford it. This irresponsible attitude is mind boggling to me.
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amother
Maroon


 

Post Tue, May 24 2016, 6:03 pm
We live in Israel where you have to give 40-50% as a down payment, so yes we borrowed for the down payment.
However, we made sure we can easily pay back the mortgage and the loans. Because the mortgage is so low, the loans + the mortgage worked out to be less than the price of renting.
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doctorima




 
 
    
 

Post Tue, May 24 2016, 6:39 pm
Like most other posters, we took out a mortgage, but otherwise didn't borrow to help with the down payment. I'm still waiting for OP to return to clarify what she meant in the first place.
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amother
Blonde


 

Post Tue, May 24 2016, 8:23 pm
Just bought a house for over 1 million and didn't borrow of get Morgage.
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amother
Violet


 

Post Tue, May 24 2016, 8:41 pm
We bought our house. We had enough to put down more than 10%, but in order to have a lower monthly mortgage plus property taxes, we borrowed enough to have the full 20% to put down. The extra that we saved ourselves in the mortgage we're using to pay back the loan and we should be paid back within 3 years.
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Ashrei




 
 
    
 

Post Tue, May 24 2016, 11:12 pm
amother wrote:
Just curious...
Did any of you ppl buy a house, (im not talking about a house 500k and below) without having to borrow money? and if you did, did you borrow on interest or did you manage to borrow without avoiding that cost?
I just bought a house for $975,000, and although I have a nice down payment put away, I still cant see myself managing without borrowing some money...but I have no idea where and whom to turn to?
any ideas?


Whew - If I were you I'd just try to spend as little as possible and slow life down for a while to try to reach a balance between making your house payments and anything else you need; I'd live frugally for a while and see if you can possibly accumulate money. I hate to ask if you need money to fix it up too. All I can think of is refinancing in that case.

The same Hashem who gave you the money for the house will give you money for everything too. Just daven more and build your emuna. Maybe He put you in this situation to give you an opportunity to come closer to him, which, listen, is a GREAT bracha. Hatzlacha Smile
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