Am I ready to buy a house?
October 29, 2007 7:54 PM Subscribe
Am I ready to buy a house? Disgusting details inside.
posted by TomMelee to Work & Money (38 answers total) 9 users marked this as a favorite
Me, in a nutshell. 27, male, unmarried, no kids, live in girlfriend. Making right at a whopping $30k a year. Debt-right at $14k in student loans, and about $9k on a car, that's it. I have about $2k in cash savings, accrued mostly in the last 6 months. I have never bought a home before and will most likely qualify for first time homebuyers incentives if the house meets the criteria. Monthly debt $250 car payment, $130 insurance, $50 cell phone, student loans in forbearance. No credit cards or other accounts.
Houses in my immediate town are pretty well out of the question. I'd be looking at $100k to open a door. I'll be looking outside the city limits, where, for example, $65k will get me a house and 13 acres.
Catches: Student loans are JUST out of default. I'm being told it will take up to 3 months for them to fall of my credit report. With them on there, the score is a whopping 520-550. Right now I live in a house owned by my mother, she will be selling it in the spring.
According to the interwebs and fannie mae, I should be able to afford up to a $92,000 house. I don't *want* to. I won't even consider anything over $65k. I have not yet been preapproved.
So, questions: Am I ready to buy a house?
Would I be better to buy a cheap one ($30k-ish) and fix it up with the possibility of reselling? I manage a hardware store---I can get anything I need quite cheap and usually do it myself.
Tell me what to do MeFi! Oh, and getting married is not going to happen any time soon, so don't even suggest that.