Why is ANYONE considering buying a house right now in this market unless you have to?

[aragx6]

Originally Posted by fairmarketvalue

Ok, I only asked becasue SoCal Bottom Rider made some durogatory comment about my husband and I sharing the same post screen name and you seemed so ademant about FMV bieng a she. I'm Sorry. It wasn't done to "fool" anyone, just easier for us to track and so it would'nt appear the same person was using 2 different accounts to post the same views. Does this makes sense? Hope so. -the she FMV

Just for the record, you both are more than welcome to have two different screen names. It can be tricky for us mods when two people are posting from the same IP address, but we're usually pretty astute at figuring it out. My SO and me both have accounts of our own (I wouldn't want him speaking for me too often! LOL!)

[nanannie]

Originally Posted by aragx6

Just for the record, you both are more than welcome to have two different screen names. It can be tricky for us mods when two people are posting from the same IP address, but we're usually pretty astute at figuring it out. My SO and me both have accounts of our own (I wouldn't want him speaking for me too often! LOL!)

I would suggest doing that. I let my daughter/son in law in on City data when they were staying with me while waiting to close on a house ,and not only did I get "infractions-the dreaded red dots, but his screen name was changed to mine and I didnt want to be responsible for what he said.

[Anthera]

Originally Posted by fairmarketvalue

Husband and wife set up one screen name to read and post on this forum. Most of the posts, are a "guy"(the husband). We have had a lot of interest in the real estate markets and the "attitude" about them, so to answer an already accused thought, we do not "sit and read" together, but view and post at different times, from different places and talk about them, overall, as well as read. Thanks, from the "she" of FMV.

I didn't "accuse" you of anything, I just recall FMV mentioning a wife.

[fairmarketvalue]

Originally Posted by Anthera

I didn't "accuse" you of anything, I just recall FMV mentioning a wife.

No, no, on another thread titled "could this be bottom", replying to a post my HUSBAND made, some jerk made insulting comments about how "lame" it was that my husband and I actually sat down and read this forum together and so on, which we don't, and I, the wife replied back, explaining how we both used the same name. Sorry, I was not refering to you or thinking you accused us of anything.

My husband found this forum and started out posting on it, then I actually started my own thread (about Wheaton), with the same screen name. We didn't wish to confuse anyone. He mostly posts from work and me from home. And we do talk about the "latest" posts and offer our opinions the same way. Although we have our differences, how this real estate market has become a large part of our lives is not one of them. It has definatley shown how well we work together on the same issues involved. We built a house, and we know friends and even my brother who will told us they nearly divorced before it was all over. For whatever reasons, we had no problems and really enjoyed the whole process. Selling the other home, however, had it's own set of "challenges" but where ever these posts came from, FMV opinions would not be different, written by me or my husband. Thanks.

[Humboldt1]

I think it is sweet that you and your husband post together, kind of a way to spend time together when you are apart. It is very cool how you are able to combine forces to go on here and debate and engage in conversation with the rest of us. I don't mind you having a "split personality"

Actually, in all seriousness when I settle down I would like a wife that I would be able to do something similar with, share time together, even when we are apart.

Very cool and amusing all at the same time.

[fairmarketvalue]

Originally Posted by Humboldt1

I think it is sweet that you and your husband post together, kind of a way to spend time together when you are apart. It is very cool how you are able to combine forces to go on here and debate and engage in conversation with the rest of us. I don't mind you having a "split personality"

Actually, in all seriousness when I settle down I would like a wife that I would be able to do something similar with, share time together, even when we are apart.

Very cool and amusing all at the same time.

Here is a link I found and hope it helps support my "thinking". Thanks, my wife is great. We are both here, she was online, instead of making dinner(just kidding-as I got whacked across the head), reading the latest posts and responding. It's obviously been an interesting day. I think she called some guy a jackass. We are known as the "Ricky and Lucy" of our clan. Guess it's clear why! Thanks for the kind thoughts.

KCfromNC, Humanoid, SoCal Bottom Feeder, and Middle-aged-mom, and sheri257,this ones for you guys.

http://rereport.com/sdc/print/SDCNCCJimKlinge.pdf

[team_evans]

Hope this isn't uncool--I should have made this comment several posts back--but as far as people making small down payments:

What else would you folks suggest? I'm not being a wiseass, I'm truly asking. What else were those of us who started out in life without a parental springboard (i.e. with a full student debt load and no possibility of parents 'helping out' with a first down payment) supposed to do, especially in pricier markets where a 20% down payment on a starter home can be thirty, forty, fifty grand? Who has that kind of money sitting around, especially as a FTHB? I suppose the traditional way is to put up with the crappy apartment while you save for your down payment, but how realistic has that been in recent years while the prices spiraled up and up, out of reach?

We bought our house for $117,200 in August of 2002. My husband sold his beloved Jeep to raise the 3% FHA loan down payment. We'd been married for a year and a half, with an infant daughter and student loans up the wazoo. Maybe some would say we weren't ready for homeownership, and maybe they would be right, but we could see the handwriting on the wall and knew if we could barely scrape together 3% on a $117K house then, we sure as sunshine wouldn't be able to do it in five years when prices had gone up, even after increased income, etc.

We're damn lucky we bought then, before the big runup, because if we'd taken the cautious route and tried to save for a bigger down, there's NO WAY we'd be able to have saved the $45K that a 20% down would be to get into the same house, six years later.

Now, two more children along in life, we need to trade up and we'll be able to due to the over $100K in equity we've been lucky to get, thanks to appreciation and making extra mortgage payments when possible. That is, we'll be able to trade up if we can find a FTHB who either has $45K in the bank or can manage to get approved for a loan with a smaller down to buy our house.

Obviously many, many people bought way, way out of their league over the past few years, which shouldn't have been happening and shouldn't be allowed to continue--and, borrowers have to make a reasonable down payment to have monthly payments they can handle, but I wonder how first-timers can make it into homes when the prices are so high.

Would be interested to read comments from any of the very knowledgeable posters on this board.

[Humboldt1]

You will be able to find a buyer for your home. It is a misconception that you need 20 percent down to buy a home as there are still FHA programs available where you only put 3 percent down.

Zero percent loans are much tougher to get now, even for people with premium credit. If you can't even come up with 3 percent down you should stay a renter.

You will find a home if you price it right, even with FTHBs.

You are actually in a good position, looking to upgrade homes as this market decline has gone in your favor, allowing you to buy an even nicer home than you would have been able to afford had prices not gone down.

Are you in a condo or townhouse in outlying suburb? 117k is pretty cheap, even in 2002.

[Anthera]

Originally Posted by team_evans

Hope this isn't uncool--I should have made this comment several posts back--but as far as people making small down payments:

What else would you folks suggest? I'm not being a wiseass, I'm truly asking. What else were those of us who started out in life without a parental springboard (i.e. with a full student debt load and no possibility of parents 'helping out' with a first down payment)

One of my college roommates had no parental assistance in college, worked at McD until she could get a night shift job at the local hospital. She worked summers in nasty positions, because they paid well, didn't go on spring break and spent very little money on clothes/entertainment.

After college she stayed in student type housing until she had a down payment saved for her own place. Her parents couldn't afford to give her a penny.

[Lookout Kid]

Originally Posted by team_evans

Hope this isn't uncool--I should have made this comment several posts back--but as far as people making small down payments:

What else would you folks suggest? I'm not being a wiseass, I'm truly asking. What else were those of us who started out in life without a parental springboard (i.e. with a full student debt load and no possibility of parents 'helping out' with a first down payment) supposed to do, especially in pricier markets where a 20% down payment on a starter home can be thirty, forty, fifty grand? Who has that kind of money sitting around, especially as a FTHB? I suppose the traditional way is to put up with the crappy apartment while you save for your down payment, but how realistic has that been in recent years while the prices spiraled up and up, out of reach?

We bought our house for $117,200 in August of 2002. My husband sold his beloved Jeep to raise the 3% FHA loan down payment. We'd been married for a year and a half, with an infant daughter and student loans up the wazoo. Maybe some would say we weren't ready for homeownership, and maybe they would be right, but we could see the handwriting on the wall and knew if we could barely scrape together 3% on a $117K house then, we sure as sunshine wouldn't be able to do it in five years when prices had gone up, even after increased income, etc.

We're damn lucky we bought then, before the big runup, because if we'd taken the cautious route and tried to save for a bigger down, there's NO WAY we'd be able to have saved the $45K that a 20% down would be to get into the same house, six years later.

Now, two more children along in life, we need to trade up and we'll be able to due to the over $100K in equity we've been lucky to get, thanks to appreciation and making extra mortgage payments when possible. That is, we'll be able to trade up if we can find a FTHB who either has $45K in the bank or can manage to get approved for a loan with a smaller down to buy our house.

Obviously many, many people bought way, way out of their league over the past few years, which shouldn't have been happening and shouldn't be allowed to continue--and, borrowers have to make a reasonable down payment to have monthly payments they can handle, but I wonder how first-timers can make it into homes when the prices are so high.

Would be interested to read comments from any of the very knowledgeable posters on this board.

It's an interesting question... It sounds like you timed it right by buying in 2002 before the big run-up i prices. So I'm sure you have more than 20% equity at this point, right?

If first-time homebuyers needed a down payment of 20% to get a loan, housing prices would feel even more downward pressure. Americans have become notoriously bad at saving and there are very few young couples that can get $50,000 in cash plus closing costs together (which puts you in the "median" Chicagoland home of around $250,000).

I came out of graduate school with more than $60,000 in student loan debt and my wife had another $10,000. We have since paid that off. We didn't think we needed 20% down, and we prioritized our student loan debt in addtion to an emergeny fund. Should we have waited until now to buy a place and just stayed in an apartment? Probably. But we're stuck with our decision and now just have to pay the mortgage down.