I'm 32 years old, recently divorced and have moved back in with my parents. I currently make close to $41,000 a year. I can't seem to buy a house with only one income. I'm not looking for an expensive house, $79,000. I was wondering does anyone know how I could reach my goal. I have also saved money but if you make $2000 a month, pay school loan, car loan and insurance (close to $800 a month) the house mortgage (close to $900) that leave only $240 left at the end of month. Please help me.
Kristy from Pittsburgh, PA
Can you sell your car and buy a less expensive used one? Can you rent for awhile while you save up for a down payment? Can you shop around for car insurance to see if you can get a better deal? Are you sure the mortgage on $79,000 would really be $900 per month? Our $85,000 mortgage is only $650 per month.
Definitely check out the Total Money Makeover Book.
By Kathy (Guest Post)05/24/2008
If your car loan and insurance is only $100 less than your HOUSE payment would be... there is a problem!! Sell your car, buy a nice used older one for cash, which in turn will help with the insurance amount and viola! you will free up a nice amount of cash. If your parents don't mind you living at home for a short time, make sure to save up 20% of the loan amount to put down on a house, so that you do not have PMI insurance added to your monthly mortgage loan payment. Just these couple of things will save you a lot!
By Cathy S (Guest Post)05/23/2008
You might consider learning about buying foreclosure properties. It might take a bit of cash up front, but would save in the long run. All the best to you.
By Kim Churchman05/23/2008
Good for you for rebuilding your life, one step at a time! You might need to own a more modest house for a stepping stone for a year, then flip that for another one. If you spend that year doing improvements (yard work pay$) then you might realize an improvement in your situation such that you'll be into a better house than you thought you could get. Just remember one critical thing: there is such a thing as a predatory lender out there. How can you tell who is one? when they keep saying 'Oh yes, you can afford this!' when it's more than 33% of your take-home income. God bless you!
I was in the same situation several years ago and got a HUD loan for my home. I, too, was divorced and found them very easy to deal with. It did not happen overnight, it took a little time for all the "red tape" and such. I do not know if the current housing market is making it difficult for you but I would go explore the Government loan route and perhaps Countryside. I know Countryside had some trouble in the past but do know a young couple with three children who had less than perfect credit who got a loan through them for about the same amount you are looking for and only the husband worked. The interest rate was very low and the payments less that you are expecting to pay. This route, too, took some time. Don't give up, keep looking but have patience. LOL
By (Guest Post)05/23/2008
I love PNC bank (which happens to have their home offices in Pittsburgh). My loan is for a lot more than that and I Pay 753.00 a month. Give them a call. Their loans do not cost either....meaning you pay no points to get a loan. Good luck!
By Athea (Guest Post)05/23/2008
Hi Kristy. I would like to recommend a book I recently started to read and that my husband and I are using. We're single income as well b/c I stay at home with our son. The book is called "Total Money Makeover" by Dave Ramsey. He gives very good and practical advice for creating a savings account and getting completely out of debt. I would definitely give it a look. My husband and I have figured if we follow his plan we will absolutely NO debt by October of next year and then all that money we usually pay on loans, credit cards and the car can go towards saving for a house. Good luck!
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