Ma dukes rushing me to buy a crib

[beaniemac]

You may have a hard time finding a lender under 620-640.

If she’s partnering up with you (taking the lead), and you both have a lot of cash to put down, go for it if it makes sense.

Rates are going to be dropping though.

FHA will lend to first timers with scores under 600 if this is their primary residence. Of course it's gonna cost u with higher interest rates.

 

[WIA20XX]

That's only ~4300 a month. I'm sure you can rent it out for 7,000. Trust me breh, I made millions on Doge coin

 

[The Pledge]

Ma can kiss my ass

She wants a room, she better go buy that MFer herself.

 

[Concerned Citizen]

My first question to you is this - is your mom financially well off and good with money? If so, take what she’s saying seriously and look into it but you make the decisions for your life.

 

[Menna]

If he’s got the money now, waiting would be unwise. Housing prices don’t just stay the same. They’re not waiting for you.

20% down at $700k is $140k if he has that money at 29 he will have that money and more most likely at 30 or 31. Yes, RE prices do rise but let’s say the house he looking at goes from $700k to $775k I rather pay 4% over 30 years on 775k than 6.5% on $700k

Now if he was putting down all cash then just get the thing but a key word is down payment there’s a lot to consider there

 

[Menna]

Here’s the thing I was trying to clear my student loans and my car debt then she came with this bullshyt

1. Both sides will be rented I'll be living with them
2. my credit score is so trash because i was unemployed last year, think im at like 600

Damn that’s good both sides rented. If their money going into your bills/equity/pockets this is a good deal.

Problem is with 600 credit you looking at 6.5%+ rate right now.

But you getting rent out of both units while you living there is very good. You might have to lock this down I didn’t know that… tough decision

With some quick math you looking at like $3,200 a month on just mortgage not included taxes, insurance (if HOA) utilities….

 

[Menna]

the minute they cut rates that price going up. will be 800-900k by the time he's ready to buy

I can see $800k but I rather 4% over 30 years on $800k than 6.5-7% on 700k …

 

[Conjiggle]

a $700k 2 family where you are living on one side or one part and the other part is paying your bills I assume is the dynamic here.

You said down payment....to me this is a problem at current.... you arent going to find rates under 6% anywhere and thats if your credit is 750+ not saying its not just mentioning it because average 20 year something old credit is not 750+

I would wait 18 months save more so you have more to put down and do it and get the home at 4-5%...The fed said they are lowering rates 3x this year so why not wait till sometime in 2025??? If you buy at 29 at 6.5% or at 31 at 4.25% the rate will make a big difference but the age wont.

Good info for the most part. I just want to add another viewpoint to the bolded:

1. Waiting 18 months will only see the price of homes go up.

2. The moment rates drop below 6%, the buyer pool is going to increase (more competition). This will also result in home prices going up due to multiple offer situations and the market being more willing to pay above asking/appraisal value.

3. It will still be a Sellers market in 18 months. It has been a “sellers” market for the better part of the last 7+ years due to low inventory/high demand.

4. Rule of thumb - if you can afford to buy a home now, don’t wait. He could benefit from the 18 months of equity growth if he buys now opposed to paying more later. Just refi into the lower rate in 18 months.

 

[beaniemac]

20% down at $700k is $140k if he has that money at 29 he will have that money and more most likely at 30 or 31. Yes, RE prices do rise but let’s say the house he looking at goes from $700k to $775k I rather pay 4% over 30 years on 775k than 6.5% on $700k

Now if he was putting down all cash then just get the thing but a key word is down payment there’s a lot to consider there

hate to break it to you, but rates are NEVER going back to 3-4%. those rates were at historical lows. I mean the lowest in history. to nonchalantly think that they will simply revert back to that is a fallacy.

 

[CarolinaKing]

You gonna rent it out to others? That sounds like a fukking headache. You gonna be responsible for that house and everything them renters fukk up.

 

[Menna]

FHA will lend to first timers with scores under 600 if this is their primary residence. Of course it's gonna cost u with higher interest rates.

That’s my point most ppl don’t have millions in savings and live off monthly cash flow so that rate is a big factor OP said BOTH sides will be rented and he still living in it so if he getting flow from two renters + his job then my point may not matter as that’s not typical

 

[Menna]

hate to break it to you, but rates are NEVER going back to 3-4%. those rates were at historical lows. I mean the lowest in history. to nonchalantly think that they will simply revert back to that is a fallacy.

Within the next 2 years 24 months maybe 30 with a 750+ score you will be able to get a rate between 4-4.99% and please quote me on it…I said in my post 29 and 31 yr old won’t matter but the rate will

 

[dora_da_destroyer]

Getting into a multi family is a good look, I used to cash flow from my fourplex and pay nothing toward my cost of living. Used an FHA loan @ 3% down. Because of how fast property values rise in the bay, was able to refi and remove the PMI 3 years later

 

[jadillac]

If he’s got the money now, waiting would be unwise. Housing prices don’t just stay the same. They’re not waiting for you.

But at some point, some point, this has to burst. Because with rising costs, alot of ppl can't buy a house right now. Some Houses are double what they were just a few yrs ago.

If you're selling a house, you better come up off thar price and stop being greedy

 

[Volt]

But at some point, some point, this has to burst. Because with rising costs, alot of ppl can't buy a house right now. Some Houses are double what they were just a few yrs ago.

If you're selling a house, you better come up off thar price and stop being greedy

Nah, the Real Estate market is on that Gas/Groceries timing.

That genie ain't going back into the bottle.