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Lights flicker from the opposite loft

I'm thinking of buying a house.  Yes, this is in part because of my enormous frustration with the cable situation.  But also because I'm paying a lot of money for what is ultimately a fairly small and inconveniently-arranged space. 

My parents have tentatively agreed to help out with the down payment.  I have enough income, but I have only about half the cash I'd need for a sizable down payment.  I've offered to pay it back, pay interest, etc. 

I still have lots to learn.  I can't even remember the name of the insurance you have to pay for if you don't have a 20% down payment.  I'm not even sure I have that factoid right, that 20% is the magic percentage.  



Feb. 20th, 2011 10:43 pm (UTC)
What you're thinking of is an FHA insured loan. Typically, the buyer puts 3% down, in exchange for a higher interest rate over the life of the loan than someone who is able to provide 20% down. An FHA borrower can also "buy back" some of the interest rate points, which may be a good investment, since the interest rate can have a significant effect on how much money you end up spending overall.

To echo the first comment, make sure you research the total cost of home ownership. You may need to spend up to $5000 of your down payment money towards inspection and closing costs. Property taxes can be ridiculous in certain areas. Also, down here in South Florida, it's very hard to find a house that isn't in a home owner's association, where they demand an extra $300 a month from you for a 70 year old security guard to sleep at the gate and to maintain community pool you never use. I sound bitter, don't I? :)

Anyway, this is a pretty big decision, so definitely take your time. My boyfriend and I are looking to buy a bigger place, and we've started doing research now for maybe, possibly buying in 12-18 months. Good luck, and I hope you find what you're looking for!
Feb. 23rd, 2011 10:23 pm (UTC)
Hey! It's great to see you! And thanks for the suggestions! I appreciate getting the benefit of people's experience!

While I don't want to stay here for another full year (I'm that pissed off) it sounds like I will need to accumulate more cash than I currently have to do this comfortably. So that means a longer ramp up. Though I don't want to move again (I just moved in 2007!) perhaps getting a different, cheaper apartment would be a good interim choice.