Everyone is buying houses!

amother

cornflower

Fri, Jun 17 2022, 11:13 am

amother [ Smokey ] wrote:

I have saved up 20% for a small-ish house, which Im fine with. My issue is that I need a cosigner and cant find one. Can anyone relate?

Why do you need a cosigner if you have 20%?

amother

Iris

Fri, Jun 17 2022, 11:24 am

amother [ Ultramarine ] wrote:

Well I'm 27 and my husband is 29 and we're in contract for a small house in Brooklyn which is a fortune. Our down payment is a lot of savings, some wedding gifts, some birthday gifts, 2 shadchanus gelt situations and that's it. No family help. We're taking out a gemach loan for closing and moving costs and the help we are getting is more logistical, helping to find good brokers, good rates, good inspectors etc.
We both have pretty good jobs, 3 kids, we don't have tutions yet because our kids are in 3K and UPK programs so now is our only chance, once my oldest goes to Pre1a, we'll have tuition and there's no way we can buy.

How much was your down payment? And how much is your mortgage? In Bklyn as well and would love what the current numbers actually look like

amother

Dill

Fri, Jun 17 2022, 11:31 am

amother [ cornflower ] wrote:

Why do you need a cosigner if you have 20%?

Just because you have 20% down doesn't mean that your income and credit work to get a mortgage.
There are people who got cosigners who are putting a lot more than 20% down.

amother

Powderblue

Fri, Jun 17 2022, 11:46 am

amother [ Magenta ] wrote:

This is what we do.
Every month we do direct deposit into mutual funds under each of our childrens names.
We do it monthly so that we buy highs and lows and hope that it evens out. This way over 20 yrs we hope to ride the market and get an avg earning. While mutual funds can fluctuate you and invest pretty conservative in a vanguard fund and the money should not disappear entirely no matter how bad the market is.
We have a goal amount and once we reach that we stop putting in. So we don’t have to do for all kids always - assuming it does well
We set this up with a financial advisor that did not charge for his service.
There is a fee taken off every month when investing.

Can you give some ideas for numbers? How much per month? What goal amount?

amother

Magenta

Fri, Jun 17 2022, 11:52 am

amother [ Powderblue ] wrote:

Can you give some ideas for numbers? How much per month? What goal amount?

We use oakwood financial in lkwd
He recommends $50/month
At times we could do more we have.
A goal for me would is in 20k-30k range. We got to higher numbers for some kids bec some years we put in more.

If you put in $50/month and avg is 7% after 20 yrs you can have 25,000

amother

Chestnut

Fri, Jun 17 2022, 11:52 am

The rent and mortgage may be very close. It's the down payment and closing cost that is the hardest. I moved out of NY when I saw the housing cost and knew I couldn't rent my 1.5 bedroom apartment in NY much longer with 4 kids.

BH one set of parents gave us some money as a gift and the other gave us a loan. We were able to put down money for a house and our mortgage + taxes + insurance is about what we paid for our tiny hole in the wall apartment in NY. It did mean relocating, finding new jobs, etc.

amother

Powderblue

Fri, Jun 17 2022, 12:27 pm

amother [ Magenta ] wrote:

Thanks!!

snailmail

Fri, Jun 17 2022, 2:57 pm

You dont always need 20% downpayment, there are (were?) 10% or 5% options out there depending on multiple factors.
The difference in buying in your low 20s vs 30s or 40s that I think has not been mentioned here - you buy a smaller / starter home. With no kids or only a baby, you dont need a 6 bedroom house. If you are able to, a house that needs some work and/or out of the thick of the frum area where prices are a little cheaper. So the price is much more affordable. You have a smaller property - but hopefully price will go up, especially after investing a little into it, and ideally area becomes a more Jewish area over time, the prices go up & you can afford to move to a larger house when you have a larger family and better income down the road.

#BestBubby

Fri, Jun 17 2022, 3:10 pm

amother [ Magenta ] wrote:

You would need $50/month PER child, in order to have $25k each.

amother

Candycane

Fri, Jun 17 2022, 3:22 pm

snailmail wrote:

If you put down less than 20% you need to pay PMI

amother

White

Fri, Jun 17 2022, 3:34 pm

Op, I feel the same way. Lots of ppl buying dont get it gifted and dont work extra hard. I’m not just talking… I lived in close proximity to quite a few and saw their lifestyle… They weren’t the ones who paid tuition or rent or any of those kinds of stuff. They bought stuff on amazon, used them for as long as necessary and then returned them… just to list a few things… and then one day they bought an expensive house in a prime location…
I know a few such ppl! Good for them! I am not upset even though its pure corruption! Just wish to understand what I am doing wrong

amother

Mintcream

Fri, Jun 17 2022, 3:45 pm

amother [ NeonBlue ] wrote:

A lot of people I know (including myself, my siblings, my husband, his siblings and several of my siblings' spouses) have money saved from when they were babies- gifts or money earned and it was put into investments for 20+ years and grew to 10s of thousands of dollars. We used that to buy our house when I was 22.

That's called family help!

amother

Ivory

Fri, Jun 17 2022, 3:46 pm

amother [ Candycane ] wrote:

If you put down less than 20% you need to pay PMI

Pmi was not that much - $60 a month for the first 3 years when we put down 12%

amother

Ivory

Fri, Jun 17 2022, 3:47 pm

amother [ White ] wrote:

I'm sorry you live in a corrupt area. I did not do anything illegal to afford my house.

amother

Raspberry

Fri, Jun 17 2022, 3:51 pm

amother [ White ] wrote:

Eh it’s the minority.

amother

White

Fri, Jun 17 2022, 4:06 pm

amother [ Raspberry ] wrote:

Eh it’s the minority.

I wonder! To me it feels like a very “big minority “
Some of the ones I know talk about these stuff openly and that’s how I know…
Sad reality

Genius

Fri, Jun 17 2022, 4:10 pm

amother [ White ] wrote:

I wonder! To me it feels like a very “big minority “
Some of the ones I know talk about these stuff openly and that’s how I know…
Sad reality

Nope it’s a tiny minority. You’re socializing with the wrong crowds.

amother

Tealblue

Fri, Jun 17 2022, 4:27 pm

Op I'm in the same boat! Also 26 and not sure how we will ever buy a house. Most of my friends who's husbands are learning or working are also in the same boat as me and not able to afford a house. I just want to mention that we see a financial planner and she sees the other side of things. She has couples that come to her who have crazy monthly payments on their mortgage that they cant afford because they put a tiny amount down for their down-payment just to be able to own a house and now they are stuck. Yes, I also know people who's parents are able to afford to fully support and buy them a house but that's not the majority. Not sure what the plan is for us, especially since dh plans to go to graduate school but it scares me too. We should have a support group lol

amother

Raspberry

Fri, Jun 17 2022, 4:28 pm

amother [ White ] wrote:

I wonder! To me it feels like a very “big minority “
Some of the ones I know talk about these stuff openly and that’s how I know…
Sad reality

Well that’s sad. This isn’t true for my very large circles.

amother

White

Fri, Jun 17 2022, 4:37 pm

amother [ Raspberry ] wrote:

Well that’s sad. This isn’t true for my very large circles.

I think we probably live on totally different planets. I’m talking about Brooklyn. And u?