Are we qualified for a housing loan?

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I agree with Lucy. Even though you are eager for a house (and wouldn’t be instead of monthly rent) plan before you jump in. Remember, unexpected expenses can crop up after you move in and you have to have enough money to take care of those unforeseen expenses.

Two months after we moved in, we had to buy a heater, the car needed repairs and hubby was laid off. It could not have been worse…oh, and it was the dead of winter! Things turned around for the better, but it was really tight and tense for the past year.

My goal is to pay off my credit card and never use it again. I want to build an emergency fund to cover emergency expenses. — On Fri, 8/15/08, Lucy Anderson wrote:

From: Lucy Anderson
Subject: Re: Budget101.com : Are we qualified for a housing loan?
To: Budget101_@yahoogroups.com
Date: Friday, August 15, 2008, 10:49 am

How much of a down payment do you have?

The path that will make you the happiest (and I know this from experience). ..

a) get out of debt first – pay off that credit card, have no other debts (no car payments, nothing)
b) go in with at least 20% down (otherwise you throw money away in PMI or you pay two mortgages – one with high interest)
c) make sure your payments on a fixed rate 15 year mortgage are no more than 25% of your take home pay

We bought a house with the 80/20 mortgage plan, nothing down, payments a bit too high and no allowances made for taxes / insurance. and a lovely balloon payment staring us in the face at the end of 15 years. The ownership of a house was not worth that.

Our marriage ended (not because of the house, but I’m sure the stress was added to from a financial standpoint), we got nothing out of the house and very narrowly missed a foreclosure. My friends ended up with a
house payment and no house from doing the same thing and their marriage went through terrible stress.

It just isn’t worth it…..

On Thu, Aug 14, 2008 at 8:45 pm, richnbeth.garner <richnbeth.garner@ yahoo.com> wrote:

Hi everyone, I want to know if we are qualified for a housing loan
even if we have no good credit standing? No good in the sense that we
are still having a unnegotiated debt in my hubby’s credit card. I
really wanted to have my own house to stay.

thank you for your future
replies.

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