Black homeownership lower today than national rate during Great Depression
- Thread starter J-Nice
- Start date
And again I plan on RENTING. Im the type of person that would rent out a bunch of places while paying rent myself.
lots of factors determine how much you'll need to put down on a home. credit history, employment history, income history, mortgage or rental history, the market you live in, new home in a new development, pre-owned home in an established neighborhood, etc etc.
if you're in fairly good financial shape a good rule of thumb is to have 10% of the anticipated purchase price for down payment and related expenses.
other factors to consider while searching...property taxes, how will your commute change, are the demographics changing in a trend you're comfortable with, if you have kids or plan to have kids how are the schools, access to shopping or entertainment districts, upcoming developments in the area such as a landfill or prison or public transportation expansion. plan to spend 6 months to a year doing research before going in.
very important, try to establish a budget around what your anticipated monthly expenses will look like before buying...mortgage, gas, electric, utilities, waste management, hoa fees, home warranty fees.
it sounds challenging and it is, but it's worth it in the long term.
if you're in fairly good financial shape a good rule of thumb is to have 10% of the anticipated purchase price for down payment and related expenses.
other factors to consider while searching...property taxes, how will your commute change, are the demographics changing in a trend you're comfortable with, if you have kids or plan to have kids how are the schools, access to shopping or entertainment districts, upcoming developments in the area such as a landfill or prison or public transportation expansion. plan to spend 6 months to a year doing research before going in.
very important, try to establish a budget around what your anticipated monthly expenses will look like before buying...mortgage, gas, electric, utilities, waste management, hoa fees, home warranty fees.
it sounds challenging and it is, but it's worth it in the long term.
UserNameless
Veteran
That's for each person to determine ...but to get pre approved and qualified you don't need 10k to get in a starter home in the south ... that's just grossly misleading and I don't want folks getting deterred . Again 10k in the coffers would be wonderful, but it's not realistic for many.
If you're making 50k or close to it with a decent debt income ratio and a modest lifestyle , you can credit fixes and pay that down over time. And if you have a partner making close to that , you'll be extra fine. Again , I'm not a big fan of incurring extra debt but that would be available.
I dont like FHA loans because you can't buy down the PMI. You can find a conventional for 5% down and allows you to pay down PMI. Also FHA loans usually make you take a homeowners class, which isn't bad, but the free/affordable classes having waiting lists for months and the certificate is only for a year. If you don't plan correctly that can delay the shyt out of everything. TV makes the shyt seem easy but you could be looking for more than a year depending on many things.
88m3
Fast Money & Foreign Objects
Some of your biggest issue are going to be the high cost of homes, strict lending standards, actually being able to save money, and your debt to income ratios.
Seems straightforward. It's not.
Seems straightforward. It's not.
UserNameless
Veteran
Yeah FHAs aren't necessarily worth it... should definitely try to shop on the loan and get the best rate possible .
I'm still a young dude myself (late 20's now) but I wasn't exposed to alot of financial/real estate info growing up so it feels like I'm playing catch up at times. I'm a voracious reader so I'm always studying and absorbing information. I constantly try to apply it whenever I can. I've made alot of mistakes, but nothing is better than actually doing it and immersing yourself in the process. Being a practitioner is how I learn best.
It can definitely hurt if alot of these people live in the hood or near high crime areas. Like most shyt, if you're affluent, then it will probably won't hurt you as much. See the refugees in St. Louis for example. It doesn't dawn on alot of folk that alot of poor/working class people do live in 3rd world like conditions despite living in a rich country like the U.S.
Disagree.
you have property value that increases as well as the interest being tax deductible.
The biggest key is buying an area that is desirable
I got my house at 25. Like another poster said all you need is Good Credit and about 10k and you can get a decent spot (a starter home or condo). And Debt to Income Ratio will make or break you.
And when I say 10k I`m talking about buying property in Former Hoods that are going to be Gentrified. Most these areas they are begging people to move in and have tons of grants, so you end up having white folks who dont even make much buying up these spots.
Unless you have a family and kids I wouldnt worry about playing the "home value" game because unless you are moving around white folks, anywhere black people live at the snap of the finger they will tell you the properties arent worth a ton.
My rule is buy cheap property and rent it out when you move to the next spot. All because you get approved for 2-300k doesnt mean you can truly afford that home because people always ignore things like maintenance and utility costs.
Unless you have a family and kids I wouldnt worry about playing the "home value" game because unless you are moving around white folks, anywhere black people live at the snap of the finger they will tell you the properties arent worth a ton.
My rule is buy cheap property and rent it out when you move to the next spot. All because you get approved for 2-300k doesnt mean you can truly afford that home because people always ignore things like maintenance and utility costs.
Yup, I'm doing the same thing in Philly and Camden. The bolded was a major reason why we had a housing crisis. Banks were giving out loans to people who couldn't afford it and Black people were major targets for predatory loans.
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ultraflexed
Superstar
Good credit goes further then cash, look for first time home buyer programs sometimes they pay your down payment and closing cost, but 10k is a good start for a FHA loan
10.5k is 3.5% of a 300k property so that can be had via FHA. Keep in mind if you have to struggle to get 10k together you def dont need to be in a 300k home or buying a home in general.
Like I said people always look at cost to acquire homes but not the cost to maintain. And if you plan on renting properties out you will need even more money. I`m not to scare anyone off just saying be prepared for what you are getting into. Back in the mid 90s when they were doing no Document mortgages they were giving people 300k mortgages as long as you had decent credit.
GnauzBookOfRhymes
Superstar
Yes, FHA is a great way to get the first home. If the seller is willing to go along, you can walk away without paying ANY downpayment.