ok, me and a buddy are seriously thinking about moving out soon. we know renting would be easiest, but buying would be a lot cheaper, and we could really use that.

heres the thing. both of us will be about 20 when this happens. he will be making close to 25k a year, and ill be making close to the same. i have really good credit, and will have everything payed off before we procede with this. he has good credit too, and will be doing the same with his credit.

so pretty much, what are the chances of a bank giving either me or him a loan to afford a decent house? i really dont know how this would work. could we split the total cost and get a loan from each of our banks? or should we try getting a loan from another source? please educate me.

AllBlackTibby, if you see this, your insight would be appreciated.

 

Don't do it. To buy a house takes 20+ years of payments. What happens if you and your buddy, for some reason, stop being friends...someone is gonna loose out on alot of money. If it's under your name and your friend pays you money, it's like he's paying you rent. Besides, making only 25,000 a year won't get a good house..unless you're lucky. I'm not trying to be negative but it's a pain to buy a house, takes a couple of months sometimes. Good luck and I hope you truely can get a good deal somewhere.

 

Yeah dude, what CyberShark said.

Think about it long and hard. Once you do it, it's yours. If you guys part ways, or just wanna move one, you've still got the financial liability of the mortgage. Nothing can change that, not even a court ordered divorce decree.

Let's say you decide to move on, and you agree that your buddy will make the payments........if he doesn't they will come after you. In the meantime your credit is being shot to Shit as well.

You can't combine each others income either without both of you being signers on the loan.

If your credit is what you say it is, then you shouldn't have too much of a problem getting a loan.......but it's probably going to be a little less that what you'd expect........it all depends.
You can get the loan in both of your names, but you can't split it 50/50 between two different banks (unless you know a seller and a title company willing to do this.......then it could happen). It would be either a FHA loan in both of your names, or a first and second mortgage in both your names.


No offense, but you're young..........things will be changing in your life soon. You're approaching a time in your life when you'll see yourself starting to grow up. I thought it would never happen, but it does. You or your buddy might end up getting married soon, then what happens? One of ya has to leave and the other has to be able to afford the house on their own. You could sell the house, but how do you split the money? What if one of you put more repairs or updates in to it?? I've seen good relationships go bad when it comes to large sums of money.

Most people don't buy a house at your age. It's a good idea to own a house, at least the money you make in a house payment has a return, unlike renting. You're at the point in your life now where you need to be saving, so when you're 25 you'll have 20 percent to put down on a house. This way you won't have to pay mortgage insurance, nor take out a 2nd mortgage on the house to get 100 percent financing.
You have to pay mortgage insurance if you have less than 20 percent equity in the house. Either that or take out a first mortgage for 80 percent of the houses value and a 2nd mortgage for the remaining 20 percent.

My advice, rent now and save for a large cash down payment in a house. Putting 20 percent or more down in cash will greatly lower your monthly, this way you can still live large and own a house.

My other piece of advice.......don't go all out on your first house. Do some research.........find a killer deal. Remember, it's all about location. The Shittiest house in the nicest neighborhood will be worth more than the nicest house in the Shittiest neighborhood.
Go reasonable, fix it up, then sell for profit......this way you'll have even more cash to put down on the house you retire in. I did this, now I own a 2400 sq ft house in a nice neighborhood. My tax assessed value is about $260,000..........I only financed 120k. With property taxes, and homeowners insurance my monthly payment comes out to about $950, whereas if I had financed the whole 260k, I'd be paying about $1900 per month.......taxes and insurance included.

I hope this helps.

 

thanks guys.

i pretty much figured buying would be out of the question.

i would love to stay at home and just build up money. but its to the point where i cant deal with stuff from my mom anymore. the constant drinking and smoking is driving me up the wall, and its starting to affect my schoolwork. i work over 40 hours a week and am taking 6 classes right now(As and Bs in all right now), and the extra shit shes always giving me is driving me nuts. you know its bad when my dad(keep in mind, my parents are still married) says that my buddy wants to move out for independance, and i need to move out to keep my sanity.

so i guess ill just continue looking at houses for rent. i look through our local paper everyday. and am starting to get an idea about pricing factors(house, location, land). once february rolls around, we are going to start driving around to houses. one question i did have though, what the hell is section 8?

pretty soon too, im going on a little tour with my next door neighbor on a naval base. hes apparently pretty high up and can get me a good job. ive got 3.5 years of experience at my current job, with a half year of that being manager experience. hopefully that will help.

thanks guys.

 

Section8

 

damn, for some odd reason i didnt even think to search the web.

weird :?

thanks man,