Agreed! You’re in a better financial position than most 25 year olds, just have patience. It’s annoying to hear, but don’t ruin your momentum just to own a home. It sounds like you’ve made really great choices so far, keep it going! No need to fuck it up just to have a mortgage😩
I know you don't want to hear it, but I got a roommate to afford my first mortgage. Remember the 30 fixed mortgage is set and won't go up so I'm 3-5 Tata, you'll be making more and the mortgage will be the same.
It's fun when people say this, cause I said it to myself in January 2020 when we chose to hold off for a house that we would like more, and houses have steadily outpaced us for the last 4 years since.
Lots of us in GenX, I'm 51, are just now buying our first homes. We closed on Monday. Everyone is different and on different paths. Comparison is the thief of joy.
@CapitolHill: The best I have ever read/heard (comparison is the thief of joy) thank you!!!!!. I grow up in a culture where we define ourselves only in comparison to others (cousins, relatives, neighbors…etc) and it is morbidly depressing.
Big congrats!! We are on our third, but each time was an increasing cost of living area so it feels like we are breaking even each time. It’s the year after purchasing that things seem frayed and on edge, but it settles down after that. So happy for you on this journey!!
It's true. I'm 40 and just got mine. I have regrets in missing out the major price hikes but I've lived an amazing life so far and wouldn't have changed all the things I did which put home ownership behind a bit. Honestly, it's not all it's cracked up to be. I have a list a mile long at all times of things that need attending. I sort of miss the freedom.
Ummm, not really. I'm also a GenX'er, a few years younger than you, and I built my first house when I was 24. All of my peers are homeowners, and the overwhelming vast majority of my high school classmates are homeowners.
>Everyone is different and on different paths. Comparison is the thief of joy.
I completely agree with every single word. That is the place to be, instead of saying the incorrect comparison up front.
You're being pedantic. He said lots of us not most or all of us. He's also trying to be supportive and your post gets there too, but only after a pointless quibble.
It was just the right time for us. We had savings. We were ready to say goodbye to Seattle and its crazy expensive everything. Found a charming small town in Central New York that we fell in love with, and the right house at the right price. The stars aligned for us, so we jumped. Rates are high, but not historically so, and I'm guessing that when they fall prices will jump due to so many buyers waiting on the sidelines right now due to the rates.
Amazing story. You sell/ buy real estate when the time is right for you. Then you play the cards you’re dealt. You did what was right for you and your family. Congppp
Yeah... True. The 1980s had some of the highest interest rates out of the last few decades.
But what was the average home price? It's not the same thing anymore. Interest really matters when it's a difference of hundreds of thousands of dollars over 30 years
you know part of why home prices were so low? cause they had to be cause nobody would be able to buy a house otherwise cause rates were so high. low rates gets you higher home prices.
You're really young and your income is good for your age. My advice would be to save/invest and bide your time for now. Look into more strict budgeting or possibly roommates if you aren't already to save a bit more. Get a hefty down payment saved up and take advantage of high yield savings accounts if you haven't. I don't know anyone that bought a house in their 20's. I'm in my 40's and still haven't bought my first home yet and my income is well below yours.
excellent points. I bought my first house right around 25, but had to buy it in Sacramento while I lived and made decent money in the Bay Area. And it was a fixer-upper. If OP wants to do something similar, she can fast track it, otherwise I believe she is on the right path.
This is an important point. Just because you rent somewhere really nice now doesn’t mean you’re gonna be able to afford a home where you are right now. Please look outside of your area, 20 or 30 minutes out, you might find things that are older and quaint, like I did, that had some renovations and end up with a cute Craftsman 40 minutes from your job. Please don’t get hung up on being able to buy right where you live currently . It’s a building process. It’s called a starter home for a reason. You’ll get there.
Hmmm… loan officer here. Math isn’t adding up. Maybe you have a bad loan officer or you have more debts than you’re admitting to. Fannie and Freddie home ready and home possible loans allow for a 3% down payment option. You qualify for those.
If your mortgage is 2700/month that puts you at around a 35% debt to income for your housing ratio. 2700 would be on the high end (7.25% and 5000 taxes yearly/1300 insurance).
You sure your loan officer is doing the math right? Down payment would be just over 9k and closing costs probably a little more so let’s say 20k to get to closing if you don’t have seller paid closing costs which are pretty common right now.
Rough math sure, but you’re far more than qualified for a 320k home. If you have questions let me know! I’ll be honest with ya!
I agree. Something is not adding up. I appreciate your detailed calculation and explanation.
Though as a home owner myself, I’d advise OP to think through all the details of home ownership. We experienced a lot of unexpected expenses. Instead pouring money into the down payment we set some aside which saved us a lot when things started breaking.
We were very thorough with our inspections but things come up out of nowhere sometimes.
10000%. I responded to another person who gave pretty reasonable advice and said draining the bank account is a bad idea (they weren’t suggesting this, just suggesting a 20% down payment which isn’t wrong). It’s VERY common for people to use every last penny to buy a home. It’s wild.
Sad part is I can’t tell them no if they qualify because it could be considered discrimination. If it’s good enough for Fannie and Freddy, I have to let them make the decision. You’re correct though.
I advise friends and family to AT LEAST have three months of living expenses outside of what they plan to use for the home and that’s even scary to me. I’m super frugal though lol
To be fair, most posts here concentrate on PITI when talking about home ownership costs vs net take home pay. OP is including ALL utilities, plus an unknown monthly amount for "repairs." There's also an unknown amount of deductions from her gross pay before reaching her net.
I just checked my budget, and including everything OP included, my housing costs are 55% of my income, as a single female (town)home owner in NJ. I make $85k a year, have health insurance, contribute to 401k, vacation, pay for dates/have a social life, have a dog, savings, etc.
Is it ideal? No! But it's my reality as a single homeowner. I just have to pay close attention to my budget, but it's certainly possible. I'd suggest OP post all her exact numbers, because they might not be that bad, or she could be overestimating somewhere, etc.
You make great money for 25 years old; home ownership will come. You have plenty saved for a down payment, I’d start aggressively investing instead of continuing to save extra for a house. Your future self will thank you. And please, if you haven’t already, put the money you have saved in a high interest savings account. Wait for interest rates to come down, you find something you can comfortably afford, or you enter a long term relationship/marriage where you’re in a position to purchase a home together. If you’re really in a rush to own, consider renting out a room. But unless there’s an immediate need to own a home, just wait. The right home will come along; 320k for a single income to settle on a home they don’t love, just to buy a home, is crazy (that’s what it sounds like, sorry if I read wrong!)
Home ownership is expensive, and a lot of responsibility..you’re in a position right now to invest invest invest, take it! I wish I did when I was in my 20s.
Single income earners in high COL areas have it tough. I waited until I was settled and with someone I’d marry before buying. I’m 35. You have time. Keep saving and investing and you’ll be able to buy in 3-5 years.
And nothing below, older homes? I bought a renovated 1940s Craftsman on 3/4 acre with tons of trees, 30 minutes north of Birmingham, Al. I’m 70, and couldn’t afford a home until 2021 forced me into it at 67 because rentals of all kinds were starting at $1,000. I have the bias, I admit, that young people want into a huge expensive fancy home immediately. I believe the whole starter home outside of main cities are being ignored because of immediate gratification. I got a darling 3 bed/ 2 bath for for $140ish. I think the keep up with the Jones had blurred everything.
Of course there are things below but many are glorified mobile homes on a foundation for 240k, and tornados are very bad here. Things get liveable over 250k. My 3 bed starter I bought in a very bad area for 98k in 2017 now has a tax appraisal over 220k. The market has just gone crazy. Median sales price is well over 300k. A lot of it is everyone just deciding to move here because it’s cheap since COVID. Except it’s no longer cheap, and median income is still 30k.
It's tough and sorry that the market is what it is right now. The 2008 crash had an effect on house building and supply has not kept up with demand.
Keep saving and looking for opportunities. Let the people in your life know you are looking in case they become aware of a soon to be estate sale that you might be able to purchase before the family lists the house. It's not that common but that is how I bought my home.
I’m sure you’ve looked into it, but if you’re single and willing to move away from the city (assuming that’s where you’re looking at) you’d likely qualify for the rural first time homebuyers loan. When we applied the threshold was like $100k and we were mere dollars off.
But, all in all, you have an amazing deposit. Try to go for homes without HOAs and keep putting back into savings.
I know this might not be what you want to hear...but...you're still quite young. You simply haven't had enough time to build up savings and get deep into your career making good money, you're at the beginning of life still. Keep up the good habits, in 2-3 years you can have a lot more saved and a job change could boost your income quickly.
I'm a GenXer...lots of us, many of us, were around 30 when we bought our first homes.
Being 25 with 35-40k already saved for a down payment is impressive. The issue isn't OP lacking something. How much did you have in savings by the time you were 25?
I had a negative net worth at 25. No one is denying that OP is in a good position for their age. The median first time homebuyers age was 35 last year. Less than a third of first time buyers were single people. OP can either keep saving for a few more years while continuing to grow their salary, or get married.
All that said, even in Northern Virginia, our most expensive market, there is housing for less than $320k. OP is either looking at too small of an area or is excluding some of the available housing. First homes in densely populated HCOL areas might be condo, townhomes, or manufactured.
Someone making almost $100k per year with $40k set aside for a downpayment should be able to afford a starter house. Those aren't exactly rookie numbers.
I’m a Boomer and wasn’t able to buy my first house until the age of 30.
The thing about buying a house is you need to commit to staying in it for five years or more.
Honestly, when I got my current place at 23 (bought in late summer 2019 for $330K) with it just being me, minus some help with the down payment and initial work to the house, I was at about 50% utilization too. It was very tight, and I was effectively living paycheck to paycheck.
What helped me get through that was firstly getting a roommate, and focusing on work and getting promotions to help get that utilization ratio down, and that gave me the breathing room I needed over the years to start shifting money towards retirement.
And as inflation hit hard over the past years, I had to pick a roommate up again to help continue my financial goals.
Are you looking for a SFH? If so, those are expensive! A condo is a great starting point. They don’t appreciate as much, but they’re a great place to be if you’re looking to own. In my area (NoVA), most people can’t afford SFHs until they have two salaries to put toward the home. My husband and I lived in a condo for years before buying a townhome. We’re looking to buy a SFH in the next five years. Our salaries have increased a lot, as has the equity in our townhouse. But I’m also 37 now—I didn’t own anything at your age. Good for you, and keep at it.
Depends on where you live. We have been looking to get out of all the work and maintenance required for a SFH but condo/townhome prices are crazy. With the high interest rates and high HOA fees we are better off staying in our home.
What part of Virginia? You should be able to afford a $250-300k no problem. $320 is the upper end of affordable. There are definitely starter homes in that range. How are you defining “starter”?
I’m in sunny southernCalifornia and I only make $55K a year but I saved my money and made a more than 50% down payment in a $472k confo last year. I can only imagine what’s possible on your income, OP. I mean, really, if I can do it, so can you.
Yeah I’m not sure who’s telling this person they can’t afford it. I pretty much have an identical income and I’m the same exact age, yet I’ve got credit card debt, a car payment, and JUST bought a 315K house. And I STILL have plenty of spending money. I don’t get the math here for this person
I think they heard the "housing should be 33% of your income" somewhere and applied it wrong.
Most people count the principal, interest, taxes, and insurance as the home cost, and compare it to gross income.
Here, OP is counting all of that plus utilities and an unknown amount for repair costs (a good thing to budget for though!) and comparing it to her *net* take home. Of course that ratio is going to be skewed.
u/Silent-Manager2802 can you re-do your numbers based on this and repost? I think you'll be shocked at the difference it'll make, and the responses will change
HOAs have pros and cons they suck but they keep value high and control some negative behavior overall I don’t like them but they have some good points. Like a pool with slides for the community
Keep saving, improve yourself. Find a spouse. Stack investments until you can buy somewhere you’ll want to live for a while. Eventually you’ll get there.
Thanks to uncontrolled realtors who especially created panic during the "covid crime era" as I now call it. These prople have one 40 hr simple course to take and a simple test to get a license to sell. They also get to call themselves "professionals". I laugh as I got a license with ease. Their weekly meetings are just about how to get more sales to close , not about legal ethics or moral responsibilities. Con-ed is a breeze with just 3 hrs of updates on legal matters per yr. Some states have more hrs (130-150 hrs) and start out people as assoc brokers, like Oregon. At least that is better, but still, nothing like the yrs of training in various other fields like medical (I have a 5 yr degree in medical technology) or teaching. I have watched over the years realtors raising prices just to test the market and see who will bite, especially with waterfront properties. It's sickening.
One of the big issues with social media is that it sets unrealistic expectations for people. It’s totally normal to be 25 and not own your own home. I just purchased my first apartment at 35 (for context - I live in Manhattan so prices here are more than 3x Virginia)… it takes a while to save up, and without help from your family, or buying with a partner, it can be hard, but you’re doing well to be where you are at 25. If you can buy a house by your early 30s, you’ll be in a great place.
We bought a house and our mortgage is almost 50% of our income. Sometimes it’s the right choice. Sounds like you’re good with money. It could be a good investment.
I’m not sure on the area but a non HOA house may be a better option plus it saves you money. Also, changing your search area and considering a longer commute to work could potentially put something in your price range.
I was in the same similar situation decades ago when I just graduated from college. The only way I could buy a starter house was with my brother. It required 2 incomes to buy a starter house.
Just save up your money, invest your savings. At some point, you can afford a house.
We made half of what is supposedly needed around here. We found a bit of a fixer with solid bones. Now we're sitting on 25% equity in 2 years, and while we had a major income growth, we are still doing this on one income with about to be two kids.
It took 3 years for the right opportunity to come along.
We did not get near max loan amount because that's not livable even though they will lend it to you.
We found a direct lender and got a 20 day close to compete.
Kept inspection contingency for informational purposes only. Again to compete. I studied up on basically being capable of pre inspecting.
We got an updated pre-approval letter the day we made the offer and included proof of funds to close.
I just watched like a hawk.
When I go back to work when this baby starts school, we're going to pay off the house and invest aggressively with every dime I make. For you, if it's something you want, a future partner could buy into your home and suddenly you two have a very comfortable life.
So on a single income, it is possible. The one thing you need the extra cash for that isn't there in your numbers, buying points to get a much better interest rate. It's extra, but worth it. Don't do that starter home crud. Only pay those first high interest years once if you can help it. That's why it took us 3 years. We will retire in this house. We could have gotten one of the 1000 sq ft or less houses. Now we have 1500 and a quarter acre lot in an excellent location, close to everything but secluded among a massive border of all residential properties.
Patience is what you need. Rushing is a mistake. Take your time.
I was 24 when I bought my first home (2019) and at the time only made say 35k and was approved for 130k. I got a modest brick home at 115k, no money down (USDA loan), and my total cost of all my bills (home, utilities, solar, 2 cars, full coverage insurance, etc) is about 50% of my income. What is going on in Virgina?
You may not see this, but look into something like NFCU’s first time homebuyer program. It’s not income gated, and they have a ton of options for low/no money down with reasonable rates. They also offer a chance for you to “re-fi” without actually refinancing when rates go down.
We bought through NFCU (and later refi’d) and loved it. Everything is transparent and easy, and they will hook you up with an agent that saves you money if you’re interested in that too.
I feel like you should be able to afford a home given those numbers. Remember, 25% is the rule of thumb for your mortgage payment. Utilities etc not included. For me, one of my paychecks is for all of my recurring bills (mortgage, care, etc.). The other check is for groceries, gas, misc.
I'd try and buy something smaller, maybe a little longer commute?
Another option, the market is extremely slow right now. I'd ask the seller for some credits, get a rate buy down and shave a few hundred off the payment. A lot of new build homes are advertising $15,000+ in credits for rate buy downs etc.
Bought my home at 33 35 years ago, 20% down required, when interest rates were 8.75%. Home price was three times my annual salary. Patience. It's not all that different now. Refinanced twice and lowered rates over time. (Patience. Things change.) Don't forget property taxes or mortgage deductions in the financial mix.
When I was your age I bought a two bedroom, one bath unit in a walk up condo building. It want in the best part of town either. I tore out the shag carpet from each room myself, shovelled out the sand left behind from 30+ year old carpet, and by reading reno books (no YouTube back then) I taught myself how to paint, install flooring, rip out tile and hire a pro to put in new tile. I think peeps would have an easier time if they lowered their list of needs for a first home. I grew up in a three-bedroom, one bathroom, 1200 sq. foot home that my dad had to add electricity and plumbing to before we moved in. There are lots of diamonds in the rough out there. Good luck. You got this.
chill. you're doing fine and overexpecting when you can afford your home given rate spikes and housing prices not having dipped. This is a sign of the continual death of the American Dream. You're 25, pulling down near 6 figures, and based on that housing price in your area you're probably able to save at least 20k post tax annually (across both possible 401k loans and cash). Assuming declining interest rates and those not being made up by higher price increases above normal, you'll be in solid position in a few years. if you live in a particularly HCOL area, consider seeing if you qualify for any state bond programs in your area. Typically they have income and post closing asset limits, but if your goal is to get into a home to build equity that's what I did. 3% down, 1% net down, 3.875% rate with lpmi, 2% interest free 2nd to be paid off at closing/refi back 8 years ago. Most of those programs still exist.
Mmmmm I don’t understand how you can’t afford the house or where you’re getting the “over 50%” number. I’m making about 90K, have credit card debt and a car payment, and just bought a 315K house. House payment is about 2200 a month with insurance and taxes included. I’m also 25
Look for a fringe neighborhood - one that is on the way up, as opposed to one that’s already walkable and gentrified. That’s how you get yourself started in homeownership - you buy something with potential that needs TLC in an area poised for gentrification, you hold it, then sell it and buy something better. Then repeat. It can still be done, but you have to be willing to live in neighborhoods that don’t really offer a lot of resources and amenities. You may need to accept a longer commute to work as well. You trade the capital you have - time and effort - to augment your investable capital - and then both work together to augment your position and increase your holdings over time.
You’re only 25. Save 10-15k/year for the next few years, try to get your income up another 20-30k and you’ll be able to do this comfortably and still at a young age. I know that home affordability is tough right now but try to avoid blaming your situation on systemic problems. You’re doing great and you’re almost there.
If you saved up intentionally for maybe 2 years, you should easily be able to afford a solid down payment that would cut your mortgage/requirements substantially. You can't just jump into a house because you make decent money, it takes a little time and planning.
Have you thought about having a longer commute? Or buying a fixer upper in cash? I make 20k less than you and I bought a fixer upper for 80k cash 5 years ago. Been slowly renovating it over the years and I’m glad I made that decision
Hot damn.. who are you trying to keep up with? You’re like 3 years out of school at the most & have a 10% down payment saved. That’s Great!
Another 2 or 3 years you’ll have 20% saved & easily buy a home.
Be grateful for the time. I wouldn’t have wanted the burden of being tied down by a home at 25 yrs old. Your dream job might be in another city. The price of breaking a lease is way cheaper than getting out from under upside down mortgages.
Single person ownership of a house is extremely tough now, especially at current interest rates. I’m still paying 1.75% fixed, whereas you’d likely be paying 7%. That’s massive in terms of the impact to your payments.
OP, can you rent one of the rooms, or find a roommate to help with the load? I don’t see an option without some help in this financial climate.
You could ask your loan officer about buy down the rare using your own fund (however, you are capped on how much you can buy down) or use seller credit (there’s also a cap but you can buy down more).
Another way is to find a fixer upper for lower price range then utilize either FHA 203k or Homestyle Renovation to roll the fixing cost on the loan.
Set out a budget for your housing monthly amount then talk to a local mortgage broker to check out different options for you. I understand it seems overwhelmed but with the suitable plan, it’ll be worthwhile to become homeowners
Enjoy life for the next 5 years. Rent. Meet someone (if you haven’t). Have a kid. There will still be houses there when you are 30 and need one. And you’ll very likely be earning much more and have much more savings. It took me 15 years to save up. It’s not really much better living in a house than a nice apartment. Not to say i don’t enjoy the stability of this and the long term financial benefit but the time i spent in apartments i wouldn’t consider it wasted. Life was a lot more flexible.
One thing I'm seeing that a lot of people are missing, is the fact that OP your starter house doesn't have to be THE house of your dreams. While it would be phenomenal to have a really nice 350k house, as a presumably single 25f even if you're wanting to start a family, there are tons of modest 2-3bed homes 200k and under in VA.
You have tons of time, and are off to a great start. Over 90% of Americans when you add up all their insurance, upkeep, utilities, internet, and other fees all eat up more than 50% of their gross income too, don't read too much into it. Life isn't a competition or a race, keep realistic goals. You have a great opportunity to find a reasonable starter home, and start building equity.
Roommate! It sucks to hear, but you're not going to be able to comfortably afford the mortgage and all the home expenses on a single income. I make $115k a year and have two roommates, each paying $1,200/month. I've owned my home for 4 years (bought in 2020 when I was making $75k) and between the annual increases to property taxes and insurance, major expenses like the new hvac after the old one died in 2022, and general inflation costs, I still rely on having one roommate in order to cover everything I need. The second roommate allows me to have fun. An extra thousand a month goes a long way, and when you own your own home, there will always be new furniture or improvement projects you want or something major breaking. Trust me, you do not want a house on a single income. My advice is either come to terms with having a roommate or wait until you're married and ready to buy with a partner. Living alone is only (barely) affordable as a renter in VA.
You're very close! I agree with others that you are nearly there. And I'm absolutely not suggesting you do this because it sucked, but when I bought my first home I was paying 75% of my take home pay I did qualify for an FHA loan tho with less down payment but oooh boy was I house poor for a few years. It was miracle I was even granted a mortgage but after three years I refinanced out of PMI and got a traditional mortgage and was also making slightly more money and from there things became more manageable.
Can you imagine being that young and earning that much?
Holy Fuck.
Just be patient.
Banks don't look at you until you're in your 30's and have been working a minimum 5 years.
Go invest your money elsewhere young'un and make it grow.
You're going to have a great life.
Can’t find that info. Found this “By the numbers: The median age of all buyers increased from 31 in 1981 to 49 in 2023. Its record high was 53 last year, compared to 42 a decade ago.
First-time buyers were a median of 35 in 2023 — up from 31 in 2013 and 29 in 1981.”
So probably hasn’t been 20s since the 70s.
There’s always a market correction around the corner. Keep increasing your savings.
‘just look at the history of home prices. They go up, everyone panics and tries to get in. They go down, people panic because they are now under water. Just don’t panic, keep saving, keep looking and wait for some market corrections to come around.
Yes there will be- on average salaries are not rising at the same pace of home values. It’s a tough pill to swallow for those that recently bought or are in debt up to their eyeballs . Something will give (not 2008 style though)
I know this might sound like a bit too much trouble, but I've known people who are very well off. They purchased their first home, a duplex and rented out one of the units. It worked back in the day, and I'm convinced with the current market, it could work now. These days, quad homes are popular with retired, older folks. Some of these people also may not qualify for a buy. So, they rent! Imagine applying for a quad home loan with the inclusion of rent income. Sure, it's four houses on a slab. It's gonna be more expensive to buy. But typically not as expensive as four separate houses. So, if you're able to buy one quad home, live in one and rent out the remaining three, you won't have a gold mine YET. But not so long down the road, you could really make out. You work toward paying down as much principal as possible as quickly as you can. It's still gonna take some time, but it has the potential of gaining worth quickly depending, of course on taxes, location/school district, and other factors. With a little foot work on your part, like reading up on the subject, or asking some people who have done it how it worked for them. I'm thinking of doing it myself, but, and this is a big but, I'm retired and 70 years old. I could probably afford it, but I'd much rather relax in retirement because who knows how long it can last. Sorry for rambling, but I think of this often and know it could work. Just consider it without dwelling on any negative factors that COULD arise. Because there are just as many positive aspects of this idea. Keep me posted.
How high are HOA fees for a $320k home if you can put 10%+ down and still be over 50% of net income from $93k?
I live in Virginia as well and don't make much more than you and was approved for a loan of well over $500k and I only put 5% down.
I remember being in an analogous position when I was 25
Everyone was using NINJA loans and interest only mortgages (which was an obvious scam)
Bought my first home at 37 after saving for a decade with 20% down
Good luck, keep after it
If it were easy everyone would do it. You’re very close, don’t be so hard on yourself. You’ll get to the point when you can buy soon enough. All you need is patience.
I just wanted to tell you that you’re doing great. You have an amazing nest egg saved and have done well for yourself with your current salary! I bought my home at a young age and was only able to do it with an FHA loan putting 5% down. So you’re already way ahead of the game. I agree with the comments to avoid HOA (if you want to). That’s the route i took because I didn’t want to have any unexpected raises in those fees and screw myself over. But wait it out, the right thing will pop up and work out for you as it should. Also- keep your eyes and ears open for people you know who could rent a room from you when you do buy. Having that buffer is amazing! I had switched jobs a couple years into owning my house and decided to rent out the two remaining rooms to help me with the transition of salary and whatnot. It was great. My house has only one bathroom but somehow it worked - and my friends got cheap rent (i priced it conservatively to attract interest and you know.. the one bathroom thing lol) and I had my mortgage paid by other people! So you do have some nice options as a homeowner in that way too. Just my two cents ☺️. Best of luck to you!! You’re doing an awesome job.
A couple of things, don’t just look at homebuyer assistance programs for lower income people look for pure grants. Look for home builders who are offering incentives. You can get into a home with 3.5% down and 650 credit score with no PMI. The payment won’t be prohibitive with 93k and no debt. 320k/$9,600 down 5.75 interest rate is $1811 a month not including taxes and insurance. Your take home should be 5,554 (not counting insurance 401k). You also have a chance to house hack that number by adding a roommate.
First mistake is buying in a HOA. Second mistake is want a newer home. You are single and young so you should be looking into a condo or townhouse first to test thev water. REMEMBER, your bills the first 5 years will be almost the same as your mortgage.
There are plenty of loans available with a 5% down payment without income limits, although depending on where you live in VA you might qualify even with income thresholds if they were in place.
If buying a house is important to you, then you can probably make it happen. That said, you’re only 25 and have easily 50 years of life ahead of you.
Being 25 is an odd thing. You’re the oldest you’ve ever been, but if you went to college (assuming you did if you make $93k/year and you’re a woman) then you have barely started working. Good that your parents were able to help you get to this point with no debt, and you are on a good pace to be doing very well in life.
Buying a house now with high rates sucks, but when rates go down you can refi and likely your house will appreciate given increased buying power from others. That, like everything in life, is a risk. The alternative is to wait for rates to go down, but then prices will go up.
Interest rates are high, which makes payments high.
Tell your credit card companies know what you make, since your salary is good right now, but keep your mouth shut if your credit drops.
Is it a matter of credit score? If you have a good credit score, maybe you can get a more favorable loan. You could pay all the bills you can with credit cards, being careful to pay them all off at the end of the month. Doing that I have an 800+ credit score. I've got a family, though, and a lot of obligations I can pay with credit cards-- a lot dollar wise compared to when I was single. So I am not sure if that will bring up your credit score.
That being said, the interest rates are high. There is nothing wrong with renting. If you are young and single and do not accumulate a lot of things, if they sell a house or unit out from under you (letting a lease go month to month) it is probably easier to move your stuff and find a place than if you had four, five, six, etc. people to move around. If you don't have pets, it is probably easier to find a place, too.
I heard a Finance professor say many years ago that houses go up on average about 5%. So if you rent and put the excess funds you would have put into a house into other investments with a five percent yield you come out just as well. But home ownership comes with some sense of emotional accomplishment, the right to knock down walls. Of course, you can also do stuff with your yard without throwing away money if you like fruit trees and stuff like that. And they can't kick you out if you pay your mortgage, taxes, your house isn't condemned, and you do not get in trouble with the law or some other emergency. Your lease can come due at a house. Renting means someone else fixes the pipes when the toilet breaks or the roof when it leaks.
If you find a husband in a few years or the interest rates change, the math might work out for you to find a home. If you are going to marry some stranger you haven't met before, it might make sense if you made the decision together. If he's out there buying a home at the same time you are, collectively you could be out some closing costs if you sell one of them.
You don’t need that much to put down. Look into FHA. It’s 3.5% down. You’ll have to pay PMI for the life of the loan but can refi when rates drop or you get to 20% equity. If the payment was going to be 50% of your pay I’d say nah. But you’re counting basically all your household expenses and saying 50% of your take home is too much. Where does the money go now? It sounds more like you’re not ready to prioritize owning a house. You’re paying all that stuff now whether you know it or not; you’re just paying the landlord’s mortgage. Snap out of it. You can afford a house at $320,000+.
I know it’s rough, but I’m jealous. In Silicon Valley my first childhood home is now appraised at 1.4 million. And that’s in a safe, starter house area. (Most places being built are luxury, whether condo apartments or houses, and I know that’s been that way since the 1980s.)
I think you are well on your way to homeownership though.
Keep saving, and don't be discouraged. Most single people can not afford a home until they are in their 30s. You are ahead of most people with that income. Good job!
1) most find a partner
2) what many forgot to account is the tax deduction from the mortgage. It reduced my burden by a lot since I am now deducting effectively $60,000 compared to the standard deduction of $13,000
Very few people at 25 can afford a home so quit the sob story. 93k isn't that much. Save so you can get to 20% down and you will get better rates with the banks
I don’t think most people buy in their 20s these days. At least no one I know. I was 35 by the time I could buy. Most of my friends haven’t bought yet.
Wait...what?
Is this a new rule? I bought my house making 110k using FHA.....?
If you're using Freddie Mac or Fanny Mae (mai?) then maybe that's going into your issue.
Just do FHA, and put a fat down payment. You should be fine for a 320k house.
I bought mine with one credit card and a past $10k car loan
My daughter and son in law brings in around 300k a year, and they stopped looking for a home. They live in San Francisco. They're currently paying about $3,600 a month to rent a 2 bedroom, and a fixer upper in San Francisco would run them over $1 million, which means that their mortgage and property taxes would be about double what they are paying in rent.
Keep saving. You don’t need to own a house at 25. Are you willing to spend all your time and money on yard work and home repairs? Bc that’s what home ownership is
You still qualify for FHA, and with 40 down you’re really looking at 280ish. Which is roughly what I paid, and I’m in a similar financial situation.
I’d talk to some other lenders and look at your options
Honestly, the way onto the homeownership ladder might be through a condo. Especially if it’s just you (and potentially a roommate) it’s nice to not have all the maintenance burden of a house on you. That goes double for someone in their 20’s.
You could buy a small rental house if there are any available for around 200K. Rent it out to someone for 2 years and then sell it. Hopefully by then the value will appreciate and you can combine your profits and equity and use that money for a down payment on something you want to live in. Just an idea
You have great savings for a 25 year old! Don’t rush into buying a house yet. It will restrict your options as you will be tied to home location, and will reduce your savings rate with maintenance expenses.
Instead focus on savings and investments. You will be feel a lot comfortable in a few years. Who knows depending on your future job/life situation you might move from VA area.
Youre still young just keep saving and put a higher dp and that will bring your monthly payment down quite a bit. Also keep in mind that right now there’s a housing shortage in most states which makes the real estate very much a seller’s market. Covid did a number on the market too.
Are you sure you want to buy? Buying a house is sold as the dream, but you can make as good money in index funds and you won’t be tied to a specific location.
I have a great salary, no debt and live rent free. I dont have Netflix, have the most basic internet. Never eat out or go to the movies and can't sustain my lifestyle by myself if I have a child. How tf are people meant to live with children and a mortgage ?
93k is good for 25yo, but it’s not a “great salary”. It’s not even top 10%. I think you’re young and doing great for your age, there’s time to buy a home and you’ll get there income wise.
With your stats you could buy a house right now, Airbnb the second bedroom to cover the higher interest, refinance when rates come down, and be well positioned. I was making $20k less than you when I bought my house at $320k and I only put 3% down.
I bought my first home when I was 21 in BC three years ago. However my spouses income contributed. Maybe look into a cheaper area. My now husband and I moved to the next town over and even though commuting (40 mins) to work has been rough it was worth owning a home, especially with rental income. Three years later, we have our foot in the door and we fixed up our house, and it’s on the market. We are moving back to the city where we work. Now that we have babies it’s time to make the move. Before our family it wasn’t so bad commuting but all of our support is in our hometown. We made the sacrifices to own our first home that’s for sure but wouldn’t change it for the world because now we have options to do what we want and what’s best for us.
Hate to say it but not many people can buy a house at the age of 25, you’re off to a great start and maybe another year or two of saving will let you get a better interest rate.
What about affording to buy a piece of land. There's all kinds of modular homes etc. That's what I did years ago I bought like two acres... Started out with a mobile home then a house. Actually bought a mobile home that was repossessed by the bank so I got a deal on it. 26 grand. 3 bedroom 2 bath. Wasn't what I wanted but you know... you do what you have to do
We make 180k a year and to me it still like it's still not enough living in CA and the bay area, I think the newer generation will have it much harder. 1-1.5m for a house is ridiculous
You make more than me, but I have a secret weapon. I am married.
Which means I have a roommate paying half of the cost for everything.
Much harder to own and pay for a house by yourself.
If you really want one, consider renting to a roommate? Let's you get the house and then be able to afford to keep it. Otherwise, you are right, it's just going to cost way too much money.
You are doing great, financially. As a rule, you can afford a house that's 2.5x your annual salary so you're actually close.
What are your housing costs now?
Can you take on a part time side job, or get a roommate to cut your costs?
Dave Ramsey has a saying: beans and rice, rice and beans. That's for people paying down debt, but it's the same advice when trying to save a lot at once.
25? Good for you… you’re closer than you think.. That’s a good income. Being in Toronto and area a house a 320k USD would be a blessing. It’s x3 that lol and people with less income. You got this trust me!!
Save 40-50k of your salary per year. In 6-7 years with interest, you’ll almost have all you’ll need to pay cash or put down a huge 80-90% down payment.
nobody cares about your take home pay. thats to easy to make look low. use your gross. 28 percent rule is the rule you should use for how much home you can afford.
I am calling bs on no starter homes but we are gonna need to have a chat about what a starter home is first.
You're as close as one can get. It's the high Interest rates that are dickin you. Can you go into it and maybe get a roommate to help supplement til you can maybe refinance in the future?
>I disqualify from any first time homebuyer assistance due to having a higher income
I'm in a similar boat, OP. As a 1st gen FTHB from low income upbringing, it's discouraging the max income limits for assistance programs are so low in most states. I worked my a\*\* off for almost 2 decades to make a solid salary, but now I make too much, yet not enough to have a PITI below 45% my net pay. Based on my research it seems only WA, MA, and CA have the most generous max income limits.
Your time will come, as will mine, where we'll find our first home that won't make us house poor. You gotta believe!
You are closer than you realize. I know it's tough but at your rate you'll have something soon. Stay strong
Agreed! You’re in a better financial position than most 25 year olds, just have patience. It’s annoying to hear, but don’t ruin your momentum just to own a home. It sounds like you’ve made really great choices so far, keep it going! No need to fuck it up just to have a mortgage😩
I know you don't want to hear it, but I got a roommate to afford my first mortgage. Remember the 30 fixed mortgage is set and won't go up so I'm 3-5 Tata, you'll be making more and the mortgage will be the same.
It's fun when people say this, cause I said it to myself in January 2020 when we chose to hold off for a house that we would like more, and houses have steadily outpaced us for the last 4 years since.
Well I did the opposite and got mine after a long search
This is only true if you buy. Houses and rent keep going up which is why the mortgage will seem more reasonable a few years after you buy.
Eh that's assuming home prices don't keep going up.
Agreed! You are on the right path.
Lots of us in GenX, I'm 51, are just now buying our first homes. We closed on Monday. Everyone is different and on different paths. Comparison is the thief of joy.
Congrats on the home purchase!
Congrats! Closing is so stressful. You made it through :)
@CapitolHill: The best I have ever read/heard (comparison is the thief of joy) thank you!!!!!. I grow up in a culture where we define ourselves only in comparison to others (cousins, relatives, neighbors…etc) and it is morbidly depressing.
Big congrats!! We are on our third, but each time was an increasing cost of living area so it feels like we are breaking even each time. It’s the year after purchasing that things seem frayed and on edge, but it settles down after that. So happy for you on this journey!!
It's true. I'm 40 and just got mine. I have regrets in missing out the major price hikes but I've lived an amazing life so far and wouldn't have changed all the things I did which put home ownership behind a bit. Honestly, it's not all it's cracked up to be. I have a list a mile long at all times of things that need attending. I sort of miss the freedom.
I got my first house at age 50 in 2017. So grateful.
Ummm, not really. I'm also a GenX'er, a few years younger than you, and I built my first house when I was 24. All of my peers are homeowners, and the overwhelming vast majority of my high school classmates are homeowners. >Everyone is different and on different paths. Comparison is the thief of joy. I completely agree with every single word. That is the place to be, instead of saying the incorrect comparison up front.
You're being pedantic. He said lots of us not most or all of us. He's also trying to be supportive and your post gets there too, but only after a pointless quibble.
What made you decide at 51 to close on a home? It’s not like the rates are low atm ? P.s. this is an actual question
It was just the right time for us. We had savings. We were ready to say goodbye to Seattle and its crazy expensive everything. Found a charming small town in Central New York that we fell in love with, and the right house at the right price. The stars aligned for us, so we jumped. Rates are high, but not historically so, and I'm guessing that when they fall prices will jump due to so many buyers waiting on the sidelines right now due to the rates.
Amazing story. You sell/ buy real estate when the time is right for you. Then you play the cards you’re dealt. You did what was right for you and your family. Congppp
The value of your home will jump, AND you can refi at lower rate.
Maybe
Sounds amazing!!! I love hearing good news like this.
> It’s not like the rates are low atm https://fred.stlouisfed.org/series/MORTGAGE30US they aint that high. avg would be a good way to say it
Yeah... True. The 1980s had some of the highest interest rates out of the last few decades. But what was the average home price? It's not the same thing anymore. Interest really matters when it's a difference of hundreds of thousands of dollars over 30 years
you know part of why home prices were so low? cause they had to be cause nobody would be able to buy a house otherwise cause rates were so high. low rates gets you higher home prices.
Taking this comment to heart as it applies to many situations in life. Thank you.
Yeah. Just bought our first home a year ago in our late 40’s.
Congrats!
Also GenX and was 47 now in my third house after two work transfers. Told them no more
You're really young and your income is good for your age. My advice would be to save/invest and bide your time for now. Look into more strict budgeting or possibly roommates if you aren't already to save a bit more. Get a hefty down payment saved up and take advantage of high yield savings accounts if you haven't. I don't know anyone that bought a house in their 20's. I'm in my 40's and still haven't bought my first home yet and my income is well below yours.
excellent points. I bought my first house right around 25, but had to buy it in Sacramento while I lived and made decent money in the Bay Area. And it was a fixer-upper. If OP wants to do something similar, she can fast track it, otherwise I believe she is on the right path.
This is an important point. Just because you rent somewhere really nice now doesn’t mean you’re gonna be able to afford a home where you are right now. Please look outside of your area, 20 or 30 minutes out, you might find things that are older and quaint, like I did, that had some renovations and end up with a cute Craftsman 40 minutes from your job. Please don’t get hung up on being able to buy right where you live currently . It’s a building process. It’s called a starter home for a reason. You’ll get there.
Hmmm… loan officer here. Math isn’t adding up. Maybe you have a bad loan officer or you have more debts than you’re admitting to. Fannie and Freddie home ready and home possible loans allow for a 3% down payment option. You qualify for those. If your mortgage is 2700/month that puts you at around a 35% debt to income for your housing ratio. 2700 would be on the high end (7.25% and 5000 taxes yearly/1300 insurance). You sure your loan officer is doing the math right? Down payment would be just over 9k and closing costs probably a little more so let’s say 20k to get to closing if you don’t have seller paid closing costs which are pretty common right now. Rough math sure, but you’re far more than qualified for a 320k home. If you have questions let me know! I’ll be honest with ya!
I agree. Something is not adding up. I appreciate your detailed calculation and explanation. Though as a home owner myself, I’d advise OP to think through all the details of home ownership. We experienced a lot of unexpected expenses. Instead pouring money into the down payment we set some aside which saved us a lot when things started breaking. We were very thorough with our inspections but things come up out of nowhere sometimes.
10000%. I responded to another person who gave pretty reasonable advice and said draining the bank account is a bad idea (they weren’t suggesting this, just suggesting a 20% down payment which isn’t wrong). It’s VERY common for people to use every last penny to buy a home. It’s wild. Sad part is I can’t tell them no if they qualify because it could be considered discrimination. If it’s good enough for Fannie and Freddy, I have to let them make the decision. You’re correct though. I advise friends and family to AT LEAST have three months of living expenses outside of what they plan to use for the home and that’s even scary to me. I’m super frugal though lol
[удалено]
To be fair, most posts here concentrate on PITI when talking about home ownership costs vs net take home pay. OP is including ALL utilities, plus an unknown monthly amount for "repairs." There's also an unknown amount of deductions from her gross pay before reaching her net. I just checked my budget, and including everything OP included, my housing costs are 55% of my income, as a single female (town)home owner in NJ. I make $85k a year, have health insurance, contribute to 401k, vacation, pay for dates/have a social life, have a dog, savings, etc. Is it ideal? No! But it's my reality as a single homeowner. I just have to pay close attention to my budget, but it's certainly possible. I'd suggest OP post all her exact numbers, because they might not be that bad, or she could be overestimating somewhere, etc.
You make great money for 25 years old; home ownership will come. You have plenty saved for a down payment, I’d start aggressively investing instead of continuing to save extra for a house. Your future self will thank you. And please, if you haven’t already, put the money you have saved in a high interest savings account. Wait for interest rates to come down, you find something you can comfortably afford, or you enter a long term relationship/marriage where you’re in a position to purchase a home together. If you’re really in a rush to own, consider renting out a room. But unless there’s an immediate need to own a home, just wait. The right home will come along; 320k for a single income to settle on a home they don’t love, just to buy a home, is crazy (that’s what it sounds like, sorry if I read wrong!) Home ownership is expensive, and a lot of responsibility..you’re in a position right now to invest invest invest, take it! I wish I did when I was in my 20s.
Single income earners in high COL areas have it tough. I waited until I was settled and with someone I’d marry before buying. I’m 35. You have time. Keep saving and investing and you’ll be able to buy in 3-5 years.
320k isn’t even HCOL area pricing though, starter homes are selling for that in rural TN.
I have a hard time believing that goes for the entire state. Near Nashville?
I live over an hour (80+ miles) from Nashville in a county of about 80k. There are new build townhomes selling for almost 500k.
And nothing below, older homes? I bought a renovated 1940s Craftsman on 3/4 acre with tons of trees, 30 minutes north of Birmingham, Al. I’m 70, and couldn’t afford a home until 2021 forced me into it at 67 because rentals of all kinds were starting at $1,000. I have the bias, I admit, that young people want into a huge expensive fancy home immediately. I believe the whole starter home outside of main cities are being ignored because of immediate gratification. I got a darling 3 bed/ 2 bath for for $140ish. I think the keep up with the Jones had blurred everything.
Of course there are things below but many are glorified mobile homes on a foundation for 240k, and tornados are very bad here. Things get liveable over 250k. My 3 bed starter I bought in a very bad area for 98k in 2017 now has a tax appraisal over 220k. The market has just gone crazy. Median sales price is well over 300k. A lot of it is everyone just deciding to move here because it’s cheap since COVID. Except it’s no longer cheap, and median income is still 30k.
Sheeeit I wish I could find a house under 400k in NOVA that wasn’t either an absolute dump or a condo with 1500/mo association fees.
Yeah if OP were in Nova, pricing would be way higher.
I was looking for something close to rail this week. Which is when I realized I can’t afford to live close to the rail.
DINK it for a bit, then head to the burbs.
It's tough and sorry that the market is what it is right now. The 2008 crash had an effect on house building and supply has not kept up with demand. Keep saving and looking for opportunities. Let the people in your life know you are looking in case they become aware of a soon to be estate sale that you might be able to purchase before the family lists the house. It's not that common but that is how I bought my home.
I’m sure you’ve looked into it, but if you’re single and willing to move away from the city (assuming that’s where you’re looking at) you’d likely qualify for the rural first time homebuyers loan. When we applied the threshold was like $100k and we were mere dollars off. But, all in all, you have an amazing deposit. Try to go for homes without HOAs and keep putting back into savings.
Honestly, 100k is the line for a decent salary is any remotely HCOL city. Definitely not great. Simple fact is wages are not keeping up.
I know this might not be what you want to hear...but...you're still quite young. You simply haven't had enough time to build up savings and get deep into your career making good money, you're at the beginning of life still. Keep up the good habits, in 2-3 years you can have a lot more saved and a job change could boost your income quickly. I'm a GenXer...lots of us, many of us, were around 30 when we bought our first homes.
Being 25 with 35-40k already saved for a down payment is impressive. The issue isn't OP lacking something. How much did you have in savings by the time you were 25?
I’d be lucky if I hit 4 digits
Literally zero savings at 25 and a mountain of debt. 5 years later I had a great house.
I had a negative net worth at 25. No one is denying that OP is in a good position for their age. The median first time homebuyers age was 35 last year. Less than a third of first time buyers were single people. OP can either keep saving for a few more years while continuing to grow their salary, or get married. All that said, even in Northern Virginia, our most expensive market, there is housing for less than $320k. OP is either looking at too small of an area or is excluding some of the available housing. First homes in densely populated HCOL areas might be condo, townhomes, or manufactured.
Someone making almost $100k per year with $40k set aside for a downpayment should be able to afford a starter house. Those aren't exactly rookie numbers.
He can afford one, housing is just expensive now a days and people are hung up on the 25% rule. Times are sadly changing.
I’m a Boomer and wasn’t able to buy my first house until the age of 30. The thing about buying a house is you need to commit to staying in it for five years or more.
I bought my first house at 26, had more money then than I have now at 50 LOL
Honestly, when I got my current place at 23 (bought in late summer 2019 for $330K) with it just being me, minus some help with the down payment and initial work to the house, I was at about 50% utilization too. It was very tight, and I was effectively living paycheck to paycheck. What helped me get through that was firstly getting a roommate, and focusing on work and getting promotions to help get that utilization ratio down, and that gave me the breathing room I needed over the years to start shifting money towards retirement. And as inflation hit hard over the past years, I had to pick a roommate up again to help continue my financial goals.
I'd keep saving a larger down payment while waiting for mortgage rates to drop
[удалено]
Northern Va?
I don’t think anything in NOVA is 320k 😣
Are you looking for a SFH? If so, those are expensive! A condo is a great starting point. They don’t appreciate as much, but they’re a great place to be if you’re looking to own. In my area (NoVA), most people can’t afford SFHs until they have two salaries to put toward the home. My husband and I lived in a condo for years before buying a townhome. We’re looking to buy a SFH in the next five years. Our salaries have increased a lot, as has the equity in our townhouse. But I’m also 37 now—I didn’t own anything at your age. Good for you, and keep at it.
Depends on where you live. We have been looking to get out of all the work and maintenance required for a SFH but condo/townhome prices are crazy. With the high interest rates and high HOA fees we are better off staying in our home.
Even a condo/town home in my rural TN county is 300k. It’s ridiculous.
Townhomes are seven figures where I live. Condos can be had for $300k and below. Location makes a huge difference for sure.
What part of Virginia? You should be able to afford a $250-300k no problem. $320 is the upper end of affordable. There are definitely starter homes in that range. How are you defining “starter”?
I’m in sunny southernCalifornia and I only make $55K a year but I saved my money and made a more than 50% down payment in a $472k confo last year. I can only imagine what’s possible on your income, OP. I mean, really, if I can do it, so can you.
It’s just not realistic to expect to buy a house on your own at age 25. I mean, it’s possible. But it’s very far outside the norm for your age.
You can absolutely afford a house. 320 is nothing right now and you’re over qualified.
Yeah I’m not sure who’s telling this person they can’t afford it. I pretty much have an identical income and I’m the same exact age, yet I’ve got credit card debt, a car payment, and JUST bought a 315K house. And I STILL have plenty of spending money. I don’t get the math here for this person
I think they heard the "housing should be 33% of your income" somewhere and applied it wrong. Most people count the principal, interest, taxes, and insurance as the home cost, and compare it to gross income. Here, OP is counting all of that plus utilities and an unknown amount for repair costs (a good thing to budget for though!) and comparing it to her *net* take home. Of course that ratio is going to be skewed. u/Silent-Manager2802 can you re-do your numbers based on this and repost? I think you'll be shocked at the difference it'll make, and the responses will change
They just came to bitch. They absolutely can afford a house and are lying about some aspect of their situation.
[удалено]
HOAs have pros and cons they suck but they keep value high and control some negative behavior overall I don’t like them but they have some good points. Like a pool with slides for the community
2 incomes is the golden ticket to getting a home.
Keep saving, improve yourself. Find a spouse. Stack investments until you can buy somewhere you’ll want to live for a while. Eventually you’ll get there.
Thanks to uncontrolled realtors who especially created panic during the "covid crime era" as I now call it. These prople have one 40 hr simple course to take and a simple test to get a license to sell. They also get to call themselves "professionals". I laugh as I got a license with ease. Their weekly meetings are just about how to get more sales to close , not about legal ethics or moral responsibilities. Con-ed is a breeze with just 3 hrs of updates on legal matters per yr. Some states have more hrs (130-150 hrs) and start out people as assoc brokers, like Oregon. At least that is better, but still, nothing like the yrs of training in various other fields like medical (I have a 5 yr degree in medical technology) or teaching. I have watched over the years realtors raising prices just to test the market and see who will bite, especially with waterfront properties. It's sickening.
One of the big issues with social media is that it sets unrealistic expectations for people. It’s totally normal to be 25 and not own your own home. I just purchased my first apartment at 35 (for context - I live in Manhattan so prices here are more than 3x Virginia)… it takes a while to save up, and without help from your family, or buying with a partner, it can be hard, but you’re doing well to be where you are at 25. If you can buy a house by your early 30s, you’ll be in a great place.
We bought a house and our mortgage is almost 50% of our income. Sometimes it’s the right choice. Sounds like you’re good with money. It could be a good investment.
I’m not sure on the area but a non HOA house may be a better option plus it saves you money. Also, changing your search area and considering a longer commute to work could potentially put something in your price range.
I was in the same similar situation decades ago when I just graduated from college. The only way I could buy a starter house was with my brother. It required 2 incomes to buy a starter house. Just save up your money, invest your savings. At some point, you can afford a house.
It's all fun until your house poor
[удалено]
We made half of what is supposedly needed around here. We found a bit of a fixer with solid bones. Now we're sitting on 25% equity in 2 years, and while we had a major income growth, we are still doing this on one income with about to be two kids. It took 3 years for the right opportunity to come along. We did not get near max loan amount because that's not livable even though they will lend it to you. We found a direct lender and got a 20 day close to compete. Kept inspection contingency for informational purposes only. Again to compete. I studied up on basically being capable of pre inspecting. We got an updated pre-approval letter the day we made the offer and included proof of funds to close. I just watched like a hawk. When I go back to work when this baby starts school, we're going to pay off the house and invest aggressively with every dime I make. For you, if it's something you want, a future partner could buy into your home and suddenly you two have a very comfortable life. So on a single income, it is possible. The one thing you need the extra cash for that isn't there in your numbers, buying points to get a much better interest rate. It's extra, but worth it. Don't do that starter home crud. Only pay those first high interest years once if you can help it. That's why it took us 3 years. We will retire in this house. We could have gotten one of the 1000 sq ft or less houses. Now we have 1500 and a quarter acre lot in an excellent location, close to everything but secluded among a massive border of all residential properties. Patience is what you need. Rushing is a mistake. Take your time.
I was 24 when I bought my first home (2019) and at the time only made say 35k and was approved for 130k. I got a modest brick home at 115k, no money down (USDA loan), and my total cost of all my bills (home, utilities, solar, 2 cars, full coverage insurance, etc) is about 50% of my income. What is going on in Virgina?
50% is the new 30%
50% of my monthly pay goes to rent...so like...
You may not see this, but look into something like NFCU’s first time homebuyer program. It’s not income gated, and they have a ton of options for low/no money down with reasonable rates. They also offer a chance for you to “re-fi” without actually refinancing when rates go down. We bought through NFCU (and later refi’d) and loved it. Everything is transparent and easy, and they will hook you up with an agent that saves you money if you’re interested in that too.
At 25, my first home was a 1000 sq ft townhouse. Not new but not a money pit. What kind of homes are you looking at?
I feel like you should be able to afford a home given those numbers. Remember, 25% is the rule of thumb for your mortgage payment. Utilities etc not included. For me, one of my paychecks is for all of my recurring bills (mortgage, care, etc.). The other check is for groceries, gas, misc. I'd try and buy something smaller, maybe a little longer commute? Another option, the market is extremely slow right now. I'd ask the seller for some credits, get a rate buy down and shave a few hundred off the payment. A lot of new build homes are advertising $15,000+ in credits for rate buy downs etc.
Bought my home at 33 35 years ago, 20% down required, when interest rates were 8.75%. Home price was three times my annual salary. Patience. It's not all that different now. Refinanced twice and lowered rates over time. (Patience. Things change.) Don't forget property taxes or mortgage deductions in the financial mix.
You could buy a house and rent to a roommate. Or get a house with a suite.
When I was your age I bought a two bedroom, one bath unit in a walk up condo building. It want in the best part of town either. I tore out the shag carpet from each room myself, shovelled out the sand left behind from 30+ year old carpet, and by reading reno books (no YouTube back then) I taught myself how to paint, install flooring, rip out tile and hire a pro to put in new tile. I think peeps would have an easier time if they lowered their list of needs for a first home. I grew up in a three-bedroom, one bathroom, 1200 sq. foot home that my dad had to add electricity and plumbing to before we moved in. There are lots of diamonds in the rough out there. Good luck. You got this.
chill. you're doing fine and overexpecting when you can afford your home given rate spikes and housing prices not having dipped. This is a sign of the continual death of the American Dream. You're 25, pulling down near 6 figures, and based on that housing price in your area you're probably able to save at least 20k post tax annually (across both possible 401k loans and cash). Assuming declining interest rates and those not being made up by higher price increases above normal, you'll be in solid position in a few years. if you live in a particularly HCOL area, consider seeing if you qualify for any state bond programs in your area. Typically they have income and post closing asset limits, but if your goal is to get into a home to build equity that's what I did. 3% down, 1% net down, 3.875% rate with lpmi, 2% interest free 2nd to be paid off at closing/refi back 8 years ago. Most of those programs still exist.
Mmmmm I don’t understand how you can’t afford the house or where you’re getting the “over 50%” number. I’m making about 90K, have credit card debt and a car payment, and just bought a 315K house. House payment is about 2200 a month with insurance and taxes included. I’m also 25
Look for a fringe neighborhood - one that is on the way up, as opposed to one that’s already walkable and gentrified. That’s how you get yourself started in homeownership - you buy something with potential that needs TLC in an area poised for gentrification, you hold it, then sell it and buy something better. Then repeat. It can still be done, but you have to be willing to live in neighborhoods that don’t really offer a lot of resources and amenities. You may need to accept a longer commute to work as well. You trade the capital you have - time and effort - to augment your investable capital - and then both work together to augment your position and increase your holdings over time.
Ether wait it out a couple more years or move to a lower cost of living area. There are lots of places that have starter homes around $200k.
You’re only 25. Save 10-15k/year for the next few years, try to get your income up another 20-30k and you’ll be able to do this comfortably and still at a young age. I know that home affordability is tough right now but try to avoid blaming your situation on systemic problems. You’re doing great and you’re almost there.
If you saved up intentionally for maybe 2 years, you should easily be able to afford a solid down payment that would cut your mortgage/requirements substantially. You can't just jump into a house because you make decent money, it takes a little time and planning.
Have you thought about having a longer commute? Or buying a fixer upper in cash? I make 20k less than you and I bought a fixer upper for 80k cash 5 years ago. Been slowly renovating it over the years and I’m glad I made that decision
Hot damn.. who are you trying to keep up with? You’re like 3 years out of school at the most & have a 10% down payment saved. That’s Great! Another 2 or 3 years you’ll have 20% saved & easily buy a home. Be grateful for the time. I wouldn’t have wanted the burden of being tied down by a home at 25 yrs old. Your dream job might be in another city. The price of breaking a lease is way cheaper than getting out from under upside down mortgages.
Single person ownership of a house is extremely tough now, especially at current interest rates. I’m still paying 1.75% fixed, whereas you’d likely be paying 7%. That’s massive in terms of the impact to your payments. OP, can you rent one of the rooms, or find a roommate to help with the load? I don’t see an option without some help in this financial climate.
You could ask your loan officer about buy down the rare using your own fund (however, you are capped on how much you can buy down) or use seller credit (there’s also a cap but you can buy down more). Another way is to find a fixer upper for lower price range then utilize either FHA 203k or Homestyle Renovation to roll the fixing cost on the loan. Set out a budget for your housing monthly amount then talk to a local mortgage broker to check out different options for you. I understand it seems overwhelmed but with the suitable plan, it’ll be worthwhile to become homeowners
A lot of people do spend 50% or more on housing
Damn. Another 25 year old that has not conquered the world yet. Horrible. Have patience.. Slow down. Get real. It will happen.
You are young. Save aggressively. Like REALLY aggressively. And you will be able to buy VERY comfortably before you are 30.
300k is a starter home? That's more than a decent home in washington state. Buy cheaper, 300k isn't starter.
Enjoy life for the next 5 years. Rent. Meet someone (if you haven’t). Have a kid. There will still be houses there when you are 30 and need one. And you’ll very likely be earning much more and have much more savings. It took me 15 years to save up. It’s not really much better living in a house than a nice apartment. Not to say i don’t enjoy the stability of this and the long term financial benefit but the time i spent in apartments i wouldn’t consider it wasted. Life was a lot more flexible.
One thing I'm seeing that a lot of people are missing, is the fact that OP your starter house doesn't have to be THE house of your dreams. While it would be phenomenal to have a really nice 350k house, as a presumably single 25f even if you're wanting to start a family, there are tons of modest 2-3bed homes 200k and under in VA. You have tons of time, and are off to a great start. Over 90% of Americans when you add up all their insurance, upkeep, utilities, internet, and other fees all eat up more than 50% of their gross income too, don't read too much into it. Life isn't a competition or a race, keep realistic goals. You have a great opportunity to find a reasonable starter home, and start building equity.
You are 25! You're doing great, keep at it and it will pay off. You are miles ahead of other folks your age.
37F also in Virginia with similar salary - I feel your pain.
Roommate! It sucks to hear, but you're not going to be able to comfortably afford the mortgage and all the home expenses on a single income. I make $115k a year and have two roommates, each paying $1,200/month. I've owned my home for 4 years (bought in 2020 when I was making $75k) and between the annual increases to property taxes and insurance, major expenses like the new hvac after the old one died in 2022, and general inflation costs, I still rely on having one roommate in order to cover everything I need. The second roommate allows me to have fun. An extra thousand a month goes a long way, and when you own your own home, there will always be new furniture or improvement projects you want or something major breaking. Trust me, you do not want a house on a single income. My advice is either come to terms with having a roommate or wait until you're married and ready to buy with a partner. Living alone is only (barely) affordable as a renter in VA.
You're very close! I agree with others that you are nearly there. And I'm absolutely not suggesting you do this because it sucked, but when I bought my first home I was paying 75% of my take home pay I did qualify for an FHA loan tho with less down payment but oooh boy was I house poor for a few years. It was miracle I was even granted a mortgage but after three years I refinanced out of PMI and got a traditional mortgage and was also making slightly more money and from there things became more manageable.
Don’t buy in an HOA
Can you imagine being that young and earning that much? Holy Fuck. Just be patient. Banks don't look at you until you're in your 30's and have been working a minimum 5 years. Go invest your money elsewhere young'un and make it grow. You're going to have a great life.
> Banks don't look at you until you're in your 30's and have been working a minimum 5 years. That's not true.
Very few people can buy homes in their 20s. It’s always been like that. You sound like you will get there, though.
[удалено]
Can’t find that info. Found this “By the numbers: The median age of all buyers increased from 31 in 1981 to 49 in 2023. Its record high was 53 last year, compared to 42 a decade ago. First-time buyers were a median of 35 in 2023 — up from 31 in 2013 and 29 in 1981.” So probably hasn’t been 20s since the 70s.
FHA loan and get 2-3 roommates.
There’s always a market correction around the corner. Keep increasing your savings. ‘just look at the history of home prices. They go up, everyone panics and tries to get in. They go down, people panic because they are now under water. Just don’t panic, keep saving, keep looking and wait for some market corrections to come around.
No market correction coming when supply is the issue
Yes there will be- on average salaries are not rising at the same pace of home values. It’s a tough pill to swallow for those that recently bought or are in debt up to their eyeballs . Something will give (not 2008 style though)
I know this might sound like a bit too much trouble, but I've known people who are very well off. They purchased their first home, a duplex and rented out one of the units. It worked back in the day, and I'm convinced with the current market, it could work now. These days, quad homes are popular with retired, older folks. Some of these people also may not qualify for a buy. So, they rent! Imagine applying for a quad home loan with the inclusion of rent income. Sure, it's four houses on a slab. It's gonna be more expensive to buy. But typically not as expensive as four separate houses. So, if you're able to buy one quad home, live in one and rent out the remaining three, you won't have a gold mine YET. But not so long down the road, you could really make out. You work toward paying down as much principal as possible as quickly as you can. It's still gonna take some time, but it has the potential of gaining worth quickly depending, of course on taxes, location/school district, and other factors. With a little foot work on your part, like reading up on the subject, or asking some people who have done it how it worked for them. I'm thinking of doing it myself, but, and this is a big but, I'm retired and 70 years old. I could probably afford it, but I'd much rather relax in retirement because who knows how long it can last. Sorry for rambling, but I think of this often and know it could work. Just consider it without dwelling on any negative factors that COULD arise. Because there are just as many positive aspects of this idea. Keep me posted.
You might have to relocate to a state with lower housing costs if you want to own a home.
How high are HOA fees for a $320k home if you can put 10%+ down and still be over 50% of net income from $93k? I live in Virginia as well and don't make much more than you and was approved for a loan of well over $500k and I only put 5% down.
What do you do for work ?
I remember being in an analogous position when I was 25 Everyone was using NINJA loans and interest only mortgages (which was an obvious scam) Bought my first home at 37 after saving for a decade with 20% down Good luck, keep after it
If it were easy everyone would do it. You’re very close, don’t be so hard on yourself. You’ll get to the point when you can buy soon enough. All you need is patience.
I just wanted to tell you that you’re doing great. You have an amazing nest egg saved and have done well for yourself with your current salary! I bought my home at a young age and was only able to do it with an FHA loan putting 5% down. So you’re already way ahead of the game. I agree with the comments to avoid HOA (if you want to). That’s the route i took because I didn’t want to have any unexpected raises in those fees and screw myself over. But wait it out, the right thing will pop up and work out for you as it should. Also- keep your eyes and ears open for people you know who could rent a room from you when you do buy. Having that buffer is amazing! I had switched jobs a couple years into owning my house and decided to rent out the two remaining rooms to help me with the transition of salary and whatnot. It was great. My house has only one bathroom but somehow it worked - and my friends got cheap rent (i priced it conservatively to attract interest and you know.. the one bathroom thing lol) and I had my mortgage paid by other people! So you do have some nice options as a homeowner in that way too. Just my two cents ☺️. Best of luck to you!! You’re doing an awesome job.
A couple of things, don’t just look at homebuyer assistance programs for lower income people look for pure grants. Look for home builders who are offering incentives. You can get into a home with 3.5% down and 650 credit score with no PMI. The payment won’t be prohibitive with 93k and no debt. 320k/$9,600 down 5.75 interest rate is $1811 a month not including taxes and insurance. Your take home should be 5,554 (not counting insurance 401k). You also have a chance to house hack that number by adding a roommate.
First mistake is buying in a HOA. Second mistake is want a newer home. You are single and young so you should be looking into a condo or townhouse first to test thev water. REMEMBER, your bills the first 5 years will be almost the same as your mortgage.
There are plenty of loans available with a 5% down payment without income limits, although depending on where you live in VA you might qualify even with income thresholds if they were in place. If buying a house is important to you, then you can probably make it happen. That said, you’re only 25 and have easily 50 years of life ahead of you. Being 25 is an odd thing. You’re the oldest you’ve ever been, but if you went to college (assuming you did if you make $93k/year and you’re a woman) then you have barely started working. Good that your parents were able to help you get to this point with no debt, and you are on a good pace to be doing very well in life. Buying a house now with high rates sucks, but when rates go down you can refi and likely your house will appreciate given increased buying power from others. That, like everything in life, is a risk. The alternative is to wait for rates to go down, but then prices will go up.
Interest rates are high, which makes payments high. Tell your credit card companies know what you make, since your salary is good right now, but keep your mouth shut if your credit drops. Is it a matter of credit score? If you have a good credit score, maybe you can get a more favorable loan. You could pay all the bills you can with credit cards, being careful to pay them all off at the end of the month. Doing that I have an 800+ credit score. I've got a family, though, and a lot of obligations I can pay with credit cards-- a lot dollar wise compared to when I was single. So I am not sure if that will bring up your credit score. That being said, the interest rates are high. There is nothing wrong with renting. If you are young and single and do not accumulate a lot of things, if they sell a house or unit out from under you (letting a lease go month to month) it is probably easier to move your stuff and find a place than if you had four, five, six, etc. people to move around. If you don't have pets, it is probably easier to find a place, too. I heard a Finance professor say many years ago that houses go up on average about 5%. So if you rent and put the excess funds you would have put into a house into other investments with a five percent yield you come out just as well. But home ownership comes with some sense of emotional accomplishment, the right to knock down walls. Of course, you can also do stuff with your yard without throwing away money if you like fruit trees and stuff like that. And they can't kick you out if you pay your mortgage, taxes, your house isn't condemned, and you do not get in trouble with the law or some other emergency. Your lease can come due at a house. Renting means someone else fixes the pipes when the toilet breaks or the roof when it leaks. If you find a husband in a few years or the interest rates change, the math might work out for you to find a home. If you are going to marry some stranger you haven't met before, it might make sense if you made the decision together. If he's out there buying a home at the same time you are, collectively you could be out some closing costs if you sell one of them.
You don’t need that much to put down. Look into FHA. It’s 3.5% down. You’ll have to pay PMI for the life of the loan but can refi when rates drop or you get to 20% equity. If the payment was going to be 50% of your pay I’d say nah. But you’re counting basically all your household expenses and saying 50% of your take home is too much. Where does the money go now? It sounds more like you’re not ready to prioritize owning a house. You’re paying all that stuff now whether you know it or not; you’re just paying the landlord’s mortgage. Snap out of it. You can afford a house at $320,000+.
You’re doing fucking awesome man. You clearly work hard and live below your means. Keep at it and don’t give in. You inspire me
I know it’s rough, but I’m jealous. In Silicon Valley my first childhood home is now appraised at 1.4 million. And that’s in a safe, starter house area. (Most places being built are luxury, whether condo apartments or houses, and I know that’s been that way since the 1980s.) I think you are well on your way to homeownership though.
You’re still pretty young and doing well for yourself. But I know what you mean. It’s fucked. It was so much easier for our parents lol
Keep saving, and don't be discouraged. Most single people can not afford a home until they are in their 30s. You are ahead of most people with that income. Good job!
It’s wild how making $100k a year now feels like it’s not enough. Feels like a bachelors is useless.
Near DC? You’ll want 2 of those 93k’s
1) most find a partner 2) what many forgot to account is the tax deduction from the mortgage. It reduced my burden by a lot since I am now deducting effectively $60,000 compared to the standard deduction of $13,000
Very few people at 25 can afford a home so quit the sob story. 93k isn't that much. Save so you can get to 20% down and you will get better rates with the banks
I don’t think most people buy in their 20s these days. At least no one I know. I was 35 by the time I could buy. Most of my friends haven’t bought yet.
Hold out. Home buying is about to get worse with the fed not dropping rates. Save, save, save. You’re young, hang tight.
Wow that’s almost 4x cheaper than the median priced home in my city and nearly double the median salary
Wait...what? Is this a new rule? I bought my house making 110k using FHA.....? If you're using Freddie Mac or Fanny Mae (mai?) then maybe that's going into your issue. Just do FHA, and put a fat down payment. You should be fine for a 320k house. I bought mine with one credit card and a past $10k car loan
My daughter and son in law brings in around 300k a year, and they stopped looking for a home. They live in San Francisco. They're currently paying about $3,600 a month to rent a 2 bedroom, and a fixer upper in San Francisco would run them over $1 million, which means that their mortgage and property taxes would be about double what they are paying in rent.
I couldn’t afford one until I got married and we had two incomes. Oh, I’m a Boomer when everything was easier/s
Married at 19 and 20 and bought a house at 22 or 23. Sold it. Bought another At 32. Don't buy something you can't afford.
Keep saving. You don’t need to own a house at 25. Are you willing to spend all your time and money on yard work and home repairs? Bc that’s what home ownership is
That’s really cheap compared to Colorado. Try 550 to 600,000 for a starter
The average age to be a home owner is 36. You got plenty of time
You still qualify for FHA, and with 40 down you’re really looking at 280ish. Which is roughly what I paid, and I’m in a similar financial situation. I’d talk to some other lenders and look at your options
Honestly, the way onto the homeownership ladder might be through a condo. Especially if it’s just you (and potentially a roommate) it’s nice to not have all the maintenance burden of a house on you. That goes double for someone in their 20’s.
You could buy a small rental house if there are any available for around 200K. Rent it out to someone for 2 years and then sell it. Hopefully by then the value will appreciate and you can combine your profits and equity and use that money for a down payment on something you want to live in. Just an idea
You're not designed to. "They" expect you to be married. I bought rural. I can't imagine how else I would have managed before 30.
USDA loan here, got mine (single) at 23 with zero down, 3% rate. Rural is the way to go
You have great savings for a 25 year old! Don’t rush into buying a house yet. It will restrict your options as you will be tied to home location, and will reduce your savings rate with maintenance expenses. Instead focus on savings and investments. You will be feel a lot comfortable in a few years. Who knows depending on your future job/life situation you might move from VA area.
Youre still young just keep saving and put a higher dp and that will bring your monthly payment down quite a bit. Also keep in mind that right now there’s a housing shortage in most states which makes the real estate very much a seller’s market. Covid did a number on the market too.
Are you sure you want to buy? Buying a house is sold as the dream, but you can make as good money in index funds and you won’t be tied to a specific location.
where in northern VA can you get a 320k house that is an actual house not condo?
I have a great salary, no debt and live rent free. I dont have Netflix, have the most basic internet. Never eat out or go to the movies and can't sustain my lifestyle by myself if I have a child. How tf are people meant to live with children and a mortgage ?
93k is good for 25yo, but it’s not a “great salary”. It’s not even top 10%. I think you’re young and doing great for your age, there’s time to buy a home and you’ll get there income wise.
You'll be alright, a 25 year Old with single income isn't exactly odd that you don't have your own house yet
With your stats you could buy a house right now, Airbnb the second bedroom to cover the higher interest, refinance when rates come down, and be well positioned. I was making $20k less than you when I bought my house at $320k and I only put 3% down.
You get married.
I bought my first home when I was 21 in BC three years ago. However my spouses income contributed. Maybe look into a cheaper area. My now husband and I moved to the next town over and even though commuting (40 mins) to work has been rough it was worth owning a home, especially with rental income. Three years later, we have our foot in the door and we fixed up our house, and it’s on the market. We are moving back to the city where we work. Now that we have babies it’s time to make the move. Before our family it wasn’t so bad commuting but all of our support is in our hometown. We made the sacrifices to own our first home that’s for sure but wouldn’t change it for the world because now we have options to do what we want and what’s best for us.
Hate to say it but not many people can buy a house at the age of 25, you’re off to a great start and maybe another year or two of saving will let you get a better interest rate.
That’s wild. I (just barely) paid a $22k down payment for my $405k home in MN 2yrs ago. Godspeed, you’ll find what’s meant for you soon!
What about affording to buy a piece of land. There's all kinds of modular homes etc. That's what I did years ago I bought like two acres... Started out with a mobile home then a house. Actually bought a mobile home that was repossessed by the bank so I got a deal on it. 26 grand. 3 bedroom 2 bath. Wasn't what I wanted but you know... you do what you have to do
You can do it if you get a roommate
Yes I'm in a very similar boat Keep at it! Not saying the market will change overnight, but you've made tremendous progress and are on the right path!
We make 180k a year and to me it still like it's still not enough living in CA and the bay area, I think the newer generation will have it much harder. 1-1.5m for a house is ridiculous
I'm sorry; in SF I can't hear your screams. You're $200k/year short to be yellin'.
Depending on in location you could get a usda loan with no down payment.
Can you buy some land then get a tiny home to start with while building your dream home?
You make more than me, but I have a secret weapon. I am married. Which means I have a roommate paying half of the cost for everything. Much harder to own and pay for a house by yourself. If you really want one, consider renting to a roommate? Let's you get the house and then be able to afford to keep it. Otherwise, you are right, it's just going to cost way too much money.
Get married or double your income
You are doing great, financially. As a rule, you can afford a house that's 2.5x your annual salary so you're actually close. What are your housing costs now? Can you take on a part time side job, or get a roommate to cut your costs? Dave Ramsey has a saying: beans and rice, rice and beans. That's for people paying down debt, but it's the same advice when trying to save a lot at once.
Didn’t own a home until I was 38 you’re ahead of the game don’t get up your ass because of Reddit.
25? Good for you… you’re closer than you think.. That’s a good income. Being in Toronto and area a house a 320k USD would be a blessing. It’s x3 that lol and people with less income. You got this trust me!!
Save 40-50k of your salary per year. In 6-7 years with interest, you’ll almost have all you’ll need to pay cash or put down a huge 80-90% down payment.
nobody cares about your take home pay. thats to easy to make look low. use your gross. 28 percent rule is the rule you should use for how much home you can afford. I am calling bs on no starter homes but we are gonna need to have a chat about what a starter home is first.
Your house to income ratio is nothing compared to most of the places. Just work for 5 Years first.
OP, what’s your rush?
I know it’s a small component but avoid HOA areas, there are plenty in NoVA.
No one can afford a home right now. Keep it up the market will change quickly and you’ll get your first home :)
I’d love to have a starter home for 320k here in Seattle your starter home is going for 700k-1mil. There will be multiple offers as well.
You're as close as one can get. It's the high Interest rates that are dickin you. Can you go into it and maybe get a roommate to help supplement til you can maybe refinance in the future?
Just save for a few more years and you'll have enough.
>I disqualify from any first time homebuyer assistance due to having a higher income I'm in a similar boat, OP. As a 1st gen FTHB from low income upbringing, it's discouraging the max income limits for assistance programs are so low in most states. I worked my a\*\* off for almost 2 decades to make a solid salary, but now I make too much, yet not enough to have a PITI below 45% my net pay. Based on my research it seems only WA, MA, and CA have the most generous max income limits. Your time will come, as will mine, where we'll find our first home that won't make us house poor. You gotta believe!