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 Extreme Veteran
Posts: 460
 
| So, I am wondering about first time home buying...I am 24 and starting to save up for my own place (recently got a better paying job, allowing me to start saving). Just curious, how old were you when you bought your first house? And how much did you have to put down? How long did it take you to save up? I'm realizing that it's going to take me longer than I thought to save up enough to have a down payment...but I'm so over paying these ridiculous boarding prices! As I've started to look more in to houses lately, I don't know how people save up that kind of money!? Just feeling like this goal is so far out of reach right now. I feel behind compared to other people that I know my age...some already have houses, spouses and kids! Thanks for reading! |
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 Not Afraid to Work
Posts: 4717
 
| I started seriously saving around 23/24 and just bought last year at 26/27. I saved up just under 10k because I qualified for zero down but closing costs add up. I was looking for a needle in a hay stack. Land without being terribly far from work. I made 2 offers and was in 2 bid wars... lost both times. It was a blessing in disguise as the house I got was better than I ever expected and well worth the wait.
I went through my budget and made sure I was being smart about my money. I worked a 2nd job and saved all that money. I sold my horse trailer and financed another one. My old one I got $1800 but that went into savings vs the new loan which some might frown upon but for me it gave me somethin to build on.
It takes time but having not only closing costs but fencing money, hay money, etc. Those are what I needed to make sure I could get so I could also stop boarding.
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  That's White "Man" to You
Posts: 5515
| Lots of great programs for FT home buyers. Try to have about 10% of purchase price saved, though you may not need it all. USDA does a 6% program and then you will usually need to pay closing costs. You will likely need 2 years of solid tax returns from your job, though there are some exceptions to this rule. I bought my first house at 26, and built my next house at 29. |
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Married to a Louie Lover
Posts: 3303
| Great time to sit down with a lending expert and discuss the different programs!
I bought my first house at 25 and I’ve owned 3, not counting the one I live in now since I moved in with my husband and didn’t technically buy it. I’m 30 now. Yes, 3 houses in what ended up being 4 years. Kind of intentional kind of not. I worked a job with great moving benefits. Bought my 1st and got moved a year later. Bought again. Left significant other at the time and needed to downsize property, had bought well and made money on it. Signed papers on the 3rd house the day after my now husband and I went on our first date...so there’s that. Did well enough on that one that I didn’t lose money, which was the goal having only owned it for a year.
One negotiating technique that I learned is to ask the sellers to pay your PMI up front. It will reduce your monthly payment significantly more than a reduction in price of the same amount will. |
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 Member
Posts: 11
| I bought my first home when I was 25. I had moved home after graduating college and was able to save up while there. One thing I wish I would of done while at home is pay off some of my other loans that I had which I could have. It would have been a lot easier after purchasing a home and having to include a house payment with that. Shop around for a loan that works for your situation. My home was on only 6 acres so I was able to get a FHA loan which requires a low down payment. But know that FHA loans are picky on the home conditions. Whether you go through your bank or a credit union be sure to ask any and all questions you have. As stated above the USDA has some good programs as well which I hadn't looked at until after I had already purchased my house.
When thinking of the house payment you can afford also think about all the additional costs that go into owning a home. Insurance, taxes, water, electric, propane, internet, it all adds up each month.
Don't compare yourself to others. I have friends that are single, married, with kids, or still living at home with their parents. Everyone has a different path and timeline to their lives. Know that everything happens for a reason.
Feel free to pm me if you have questions! Happy to help! |
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 The Bling Princess
Posts: 3411
Location: North Dakota | How old were you when you bought your first house? My husband and I were 24 when we purchased our first home (almost 20 years ago). He was fresh out of graduate school and we had just moved to Wyoming. We purchased, at the time, on the cheaper end, definately a fixer upper. The bank approved us for much more, but we didn't want to be house poor so we shopped for cheap, but structurally sound, older homes, in respectable neighborhoods. We poured every left over penny we had into that house. In fact, when we sold it to move back to ND, we doubled the value and made bank.
And how much did you have to put down? Less than 10%. At the time we had some pretty awesome programs available to us.
How long did it take you to save up? A LONG TIME!LOL We were just two poor, right out of college, kids. We tried our best, while he was in graduate school, to stick away whatever pennies we had left over and create a small savings account. We spent every dime we had on our down payment and the bank helped us with the rest.
I don't know how people save up that kind of money!? to be honest we didn't have horses. I waited to purchase a horse until AFTER we had the home purchased and we were in it for awhile...like almost two years. I wanted to make sure we could afford the mortgage and all that comes with home ownership before I tacked on another bill.
I'd suggest going in and talking to a mortgage officer and seeing what's available to you, so you know exactly what you have to do. |
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 Miss Laundry Misshap
Posts: 5271
| My husband and I bought our first home when we were 23, right before we got married. We did the first time home-buyers program and only had to have $2000 down. It was cheap and our house payment was around $400. Way cheaper than rent and we had equity because it appraised at higher than the purchase price. |
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The Bling Princess
Posts: 3411
Location: North Dakota | Nateracer - 2017-11-09 12:39 PM My husband and I bought our first home when we were 23, right before we got married. We did the first time home-buyers program and only had to have $2000 down. It was cheap and our house payment was around $400. Way cheaper than rent and we had equity because it appraised at higher than the purchase price.
I bet we are close in age because this sounds just like us! Do you ever wish we could go back to the days of the $400 mortgage payment ......but, with our current salary? Man that'd be awesome!! |
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 The One
Posts: 7998
Location: South Georgia | 19 years old, 100% financing back then.
As an adult in our marital home...33....we needed $13,000 down. Took us a sale of a house (to get the equity) and a couple months to save this sum.
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 Expert
Posts: 2128
| I was your age and we had to put a certain % down because the bank only financed (I think 90%) of the money needed. We paid all closing costs as well. The day we signed papers we handed over a check for $8,500. Most of this cash was obtained by selling a nice rope horse we had and adding a little of our savings money to it. That was a ton of cash for us at the time. I mean it still is in my opinion but we made it happen and we have been so happy we did. You can do it!! Dont compare yourself to those around you who look like they have it all. Lots of people I know my age (29) live in 300K brick homes and probably do not bring in any more than my husband and I do. Those are the same people who will most likely have to "downsize" one of these years in the future. Just cause you can make the notes doesnt mean you can afford it (in reference to those who live beyond their means). Get a couple of project horses to train and sell. There is your down money and fees :) Best of luck. |
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 Elite Veteran
Posts: 823
Location: East Texas | To add to what the others have said. Find a 1st time buyer program and get in cheap and refinance after a year or so. I financed 100% on a house I lived in while I fixed it up and sold it 3 years later and made $30K. That plus my equity in that house allowed me to put a decent down payment on my next house and did the same thing. I sold it three years later and made $60K which got me into the house I am in now. |
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Miss Laundry Misshap
Posts: 5271
| WYOTurn-n-Burn - 2017-11-09 12:43 PM Nateracer - 2017-11-09 12:39 PM My husband and I bought our first home when we were 23, right before we got married. We did the first time home-buyers program and only had to have $2000 down. It was cheap and our house payment was around $400. Way cheaper than rent and we had equity because it appraised at higher than the purchase price. I bet we are close in age because this sounds just like us! Do you ever wish we could go back to the days of the $400 mortgage payment ......but, with our current salary? Man that'd be awesome!!
LOL, I'm in the same house and I think I'm up to $450. It changes next month since the escrow changed. |
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| I was 21, with 5% down when I bought my first house. If I was able to go back, I would have followed Dave Ramseys advice and would not have bought until I had my emergency fund and 20% down. PMI is expensive and a complete waste of money, avoid it if you can. Get a second or third job and save every penny you can and don't compare yourself with your friends, they are likely up to their eyeballs in debt. |
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 Extreme Veteran
Posts: 433
Location: The Lone Star State | I have been a mortgage Lender for 18 years..USDA is a great program for first time homebuyers in rural area(they dont do loans in city limits) 0 down loan and the seller can pay up to 6% of the sales price to cover virtually all of the closing costs and prepaid taxes and insurance. you have to have a 640 middle credit score and debt to income ratio cant go above 41% (your total monthly minimum debts reported on credit report PLUS the new house payment divided by your monthly gross income)
If you cant get the seller to pay the costs you can get a gift from a family member or you would need to have enough from your checking/savings.
FHA is also a great program but in addition to the closing costs and prepaids you have a 3.5% down payment. Credit can be lower and debt ratio higher.
Good luck! |
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Extreme Veteran
Posts: 516
| I'm 22 and just got an accepted offer on a home. We're going with a loan that doesn't need any money down. We have emergency funds saved up and some extra for some renovations. We have decent paying jobs but we've been living at my parents house for the last 6 months, so saved a lot in rent and board.
We got fed up with an hour+ drive to work and just plain living at home (I love my parents but its hard sometimes  ) plus we didn't want to throw away money in rent (we have pets which is even more per month) and board. We're going to need to be in the area for grad school anyway so it just made sense for us to buy. It's really not as hard as people think, just make sure you have a backup plan!
Edited by WiscoRacer 2017-11-09 9:08 PM
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Extreme Veteran
Posts: 460
| Thank you for all the replies!! Wow...I didn't even know there were programs that good for first time home buyers!? I completely agree though, it is definitely wise to have an emergency fund and a good savings account...but there are really loans out there where I wouldn't have to put 20-30% down? That gives me some hope <3 I have a decent credit score, but my biggest line of credit is for my truck, and it wasn't a new truck by any means...would I still be able to get accepted for a loan without having a previous larger line of credit? Giving me faith that I may be able to buy a house in the next two years =] |
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Veteran
Posts: 192
Location: Canada | Be sure to pay your loan weekly as it will be paid off sooner and you will save a lot money in interest/////
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 The best bad guy on the internet
Posts: 3519
Location: Arizona | Katielovestbs - 2017-11-10 8:59 AM
Thank you for all the replies!! Wow...I didn't even know there were programs that good for first time home buyers!? I completely agree though, it is definitely wise to have an emergency fund and a good savings account...but there are really loans out there where I wouldn't have to put 20-30% down? That gives me some hope <3 I have a decent credit score, but my biggest line of credit is for my truck, and it wasn't a new truck by any means...would I still be able to get accepted for a loan without having a previous larger line of credit? Giving me faith that I may be able to buy a house in the next two years =]
As long as you have some credit and a good job history and some money down you should be able to get financed for your house. But, make sure you have more than the down payment saved. You will have to turn on utilities which cost money, furnish it, etc. My daughter and her husband just bought their house about a year ago, it's been a struggle for them. There's lots of expenses when owning a house so be prepared!! I was a single mom and bought my first house at 29. I now own 3 houses. FHA is a good program for fist time buyers, you only have to come up with 3% down and usually the seller pays the closing costs. You will have to pay the PMI(mortgage insurance) for at least 5 years, but you can refinance into a 30yr fixed mortgage and get rid of the PMI!! |
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 To the Left
Posts: 1865
Location: Florida | I was 22, got my first job out of college and rented a few acres with a barn. Bought a moble home and put it in. Then I saved up for a few years and started buying vacant land. Put together 7 acres and built a barn, fenced, cleared. Within a few years I had saved enough and collected a bunch of building materials that with my families help I build the house I still live in 38 years later. I haved reroofed, added and took out windows and recently went from a wood burning heater of central heat and air. You don't have to mortgage your life away to get a home. Start small and work up. Lot more fun that way. |
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 Expert
Posts: 1520
Location: Illinois | I bought my first house last year and I was 28. I was able to put down 20% luckily, which included a $6,000 grant. I was fortunate enough to have enough leftover from my college savings account my parents had started when I was a baby, so I will say it was a lot easier for me to do than it is for a lot of people. My house was $110K and my monthly payment is $675 right now, that includes taxes & insurance escrow. I was paying $820 in rent for an apartment before hand. However I'm going to tell you to make sure you don't wipe out all you have for a down payment. Since buying the house I've had to put over $10,000 in repairs and a new roof I wasn't prepared to pay for quite yet. Insurance paid for a good chunk of the roof luckily, but I still am recovering from that. My furnace is also from 1989 so I'm biting my nails waiting to have to replace that too, which I'll have to take a loan out for. Many get lucky and have few things go wrong, however my house was totally remodeled by a Do It Yourselfer who I'm pretty sure learned how to do everything on crappy youtube videos, so I have lots of things to fix in the future. From the listing, walk through, and initial inspections it appeared updated and move in ready....nope, it's not. So definitely have a financial plan for things that go wrong and make sure you're taking into account all the things you'll need to buy to fill the house as well. Furniture, decorations, paint, small cosmetic changes, they all add up. Really look into the expenses of the house, what the last 12 months of electricity has cost. You can call the company and ask for a 12 month average. If there's propane make sure you've budgeted for that, my old furnace sucks up the propane like nobody's business and my heat only gets turned up to 64. Remember you're going to have water bills, trash bills, all that fun stuff. Adds up. By the end of the whole thing and being there for a year I realized that the apartment was actually much cheaper, but my money is going towards something I can kind of get back in the end. Make as much of an extra payment on the house as you can each month, even if it's $10 extra. Adds up, interest kills you. By the time I'm done paying my house off I will have paid as much in interest as the actual loan amount and the house won't be near worth that much. So pay, pay, pay. Get roommates if you have to. A roommate for a year could add up to a nice emergency fund even! |
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