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Nice excuse. Only works if you want to make 20% down instead of 3%[0] [0] https://www.knowyouroptions.com/buy-overview/affordable-mortgage-options/3-down-paym

Nice excuse. Only works if you want to make 20% down instead of 3%[0] [0] https://www.knowyouroptions.com/buy-overview/affordable-mortgage-options/3-down-payment-mortgage-for-first-time-homebuyers https://www.knowyouroptions.com/buy-overview/affordable-mort...

kristjansson 5y ago
> Funding from those programs often can be combined with financial gifts from your family and friends to reduce your out-of-pocket costs to buy a home. I mean, I get the point of saying that (funding from F&F doesn’t disqualify the applicant), but man does it feel like a quasi-government agency is suggesting needy borrowers should just ask their parents for money.
t-writescode 5y ago
Well, I tried to put 5% down; but, then I realized how much higher above asking things were selling for; and how people skip out on things like inspections. But I still want inspections, so I ask for them. This puts me down on the list of desireable buyers. I went into a place that was selling for around 300k. I was going to offer as much as 325. I was also willing to go 5k above what the place would appraise for. This matters because you can't get a loan for above a place is worth. The place sold for nearly 375k. If it appraised for 325, the buyer is on the hook for an *additional* 50k that they have to pay in cash at time of signing. You can't just not have lots of spare money in this market.
- jshen 5y ago
  You aren’t making a typical engineering salary if you can’t afford a $500k place.
  - t-writescode 5y ago
    I make 150k / year. I'm an SDE 2. The problem isn't the monthly payment, the problem is the down payment. And you've said in several places how engineers make 200k+ after 5 years. Maybe in total compensation and only in FAANG; but there are a loooot of engineering companies in Washington and the Seattle area that aren't getting hundreds of thousands of dollars in stock that's increased 5-10 fold in the last 2 years.
    - jshen 5y ago
      It’s not just the FAANG companies. You should really check out your worth on the job market. Why dismiss someone telling you that you should easily be able to get paid more? Why the victim mentality?
    - comp_throw7 5y ago
      What exactly is the problem with a downpayment on a 350k (or, heck, 500k) unit? Obviously there are exceptional circumstances, e.g. you're supporting multiple people on your salary alone, which might make it difficult to save up 70-100k quickly. But if you're single, your annual after-tax take-home is ~95k, assuming you max out your 401k contribution, and ~110k, assuming you don't contribute at all. Saving 50% of that does not even require living particularly frugally. That gets you to the top-end of the required down payment in 2 years.
      - t-writescode 5y ago
        In 2 years, the housing prices will be even higher. I just presently don't have much saving, but that's what I'm planning on doing, yes - well, not saving 50%, I do spend more than that per month; but saving at a fast rate. Even with saving, though, I should probably save at least one more year to have an emergency fund again, so it's probably more like 3 years, but your point still stands.

kristjansson 5y ago

> Funding from those programs often can be combined with financial gifts from your family and friends to reduce your out-of-pocket costs to buy a home. I mean, I get the point of saying that (funding from F&F doesn’t disqualify the applicant), but man does it feel like a quasi-government agency is suggesting needy borrowers should just ask their parents for money.

t-writescode 5y ago

Well, I tried to put 5% down; but, then I realized how much higher above asking things were selling for; and how people skip out on things like inspections. But I still want inspections, so I ask for them. This puts me down on the list of desireable buyers. I went into a place that was selling for around 300k. I was going to offer as much as 325. I was also willing to go 5k above what the place would appraise for. This matters because you can't get a loan for above a place is worth. The place sold for nearly 375k. If it appraised for 325, the buyer is on the hook for an *additional* 50k that they have to pay in cash at time of signing. You can't just not have lots of spare money in this market.

jshen 5y ago
You aren’t making a typical engineering salary if you can’t afford a $500k place.
- t-writescode 5y ago
  I make 150k / year. I'm an SDE 2. The problem isn't the monthly payment, the problem is the down payment. And you've said in several places how engineers make 200k+ after 5 years. Maybe in total compensation and only in FAANG; but there are a loooot of engineering companies in Washington and the Seattle area that aren't getting hundreds of thousands of dollars in stock that's increased 5-10 fold in the last 2 years.
  - jshen 5y ago
    It’s not just the FAANG companies. You should really check out your worth on the job market. Why dismiss someone telling you that you should easily be able to get paid more? Why the victim mentality?
  - comp_throw7 5y ago
    What exactly is the problem with a downpayment on a 350k (or, heck, 500k) unit? Obviously there are exceptional circumstances, e.g. you're supporting multiple people on your salary alone, which might make it difficult to save up 70-100k quickly. But if you're single, your annual after-tax take-home is ~95k, assuming you max out your 401k contribution, and ~110k, assuming you don't contribute at all. Saving 50% of that does not even require living particularly frugally. That gets you to the top-end of the required down payment in 2 years.
    - t-writescode 5y ago
      In 2 years, the housing prices will be even higher. I just presently don't have much saving, but that's what I'm planning on doing, yes - well, not saving 50%, I do spend more than that per month; but saving at a fast rate. Even with saving, though, I should probably save at least one more year to have an emergency fund again, so it's probably more like 3 years, but your point still stands.