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Old 11-29-2014, 05:18 PM
 
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Yes, I was hoping for mortgage, taxes, and insurance to add up to $700-800/month. I guess that was naive.
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Old 11-29-2014, 05:21 PM
 
7 posts, read 12,093 times
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Quote:
Originally Posted by peterlemonjello View Post
Does it have to be Dallas, or are you open to a suburb?
We are kind of spoiled with our 15 minute commute times. I think Richardson would be OK. I wouldn't want to go much further than that.
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Old 11-29-2014, 05:30 PM
 
13,194 posts, read 28,133,983 times
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Quote:
Originally Posted by baylorbear09 View Post
Yes, I was hoping for mortgage, taxes, and insurance to add up to $700-800/month. I guess that was naive.
Yes, you should look at the below link for a "reality check" of the houses in Dallas that fit in your self-determined $100k budget:

http://www.realtor.com/realestateand...-pending/sby-2

The conservative rule of thumb is to purchase 2X your salary. That would be $170-180k which you easily can afford. Your PITI would be less than 20% of your take home pay....that is VERY conservative and allows plenty of extra money to save and also add daycare and other kid expenses.

With little debt, a loan officer would probably approve you for close to $250-275k. I think that's cutting it too close but just to give you an idea....
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Old 11-29-2014, 05:52 PM
 
Location: North Texas
24,561 posts, read 40,114,343 times
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Quote:
Originally Posted by TurtleCreek80 View Post
Yes, you should look at the below link for a "reality check" of the houses in Dallas that fit in your self-determined $100k budget:

http://www.realtor.com/realestateand...-pending/sby-2

The conservative rule of thumb is to purchase 2X your salary. That would be $170-180k which you easily can afford. Your PITI would be less than 20% of your take home pay....that is VERY conservative and allows plenty of extra money to save and also add daycare and other kid expenses.

With little debt, a loan officer would probably approve you for close to $250-275k. I think that's cutting it too close but just to give you an idea....
When I bought this house for 190k, I was making $1k more a year myself than the OP's combined income. Interest rates were higher then too. I put down less than they did (though could have put down $18k more) and was approved for up to $300k. Credit score in the sky-high 700s, car payment < $300/month at the time. No other debt.


I think the OP needs to up their budget; they won't like what $175k can buy in Richardson these days. Think super-small or crappy Fox & Jacobs in a run-down area east of 75.

If the OP upped their budget to $225k, they could buy a great starter/fixer-upper in Richardson Heights near fantastic schools with awesome highway access in an area that is rapidly becoming white-hot with young families. It's a solid investment and worth the stretch IMHO.
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Old 11-29-2014, 06:54 PM
 
Location: 89052 & 75206
8,099 posts, read 8,243,270 times
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look in Richardson, then. It will be tough so be prepared for a long search. Also register with Hudhomestore.com to get notices on foreclosures. HUD foreclosures give preference to owner occupied bidders for their properties. Doesn't hurt to get notification when there is a property in your price range or area to at least check it out.
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Old 11-29-2014, 08:34 PM
 
Location: North Texas
24,561 posts, read 40,114,343 times
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Quote:
Originally Posted by WorldKlas View Post
look in Richardson, then. It will be tough so be prepared for a long search. Also register with Hudhomestore.com to get notices on foreclosures. HUD foreclosures give preference to owner occupied bidders for their properties. Doesn't hurt to get notification when there is a property in your price range or area to at least check it out.
OP should steel themselves for a long search unless they get lucky. Reasonably priced homes in good condition go FAST in this area. Sometimes people post on Facebook before their houses go on MLS; the OP should stalk the Facebook page for the Richardson Heights Neighborhood Association. It's the most active one in the area with members in other neighborhoods too.
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Old 11-30-2014, 09:57 PM
 
777 posts, read 1,206,975 times
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Quote:
Originally Posted by baylorbear09 View Post
We are kind of spoiled with our 15 minute commute times. I think Richardson would be OK. I wouldn't want to go much further than that.
Kudos to you for being fiscally responsible. That is very 'against the grain' for a lot of young folks in Dallas. You'd be hard pressed to rent a clean 1-bedroom apartment in a suburb for 700/month, let alone buy a home. Keep in mind that as first-time homebuyers, you have numerous mortgage options available to you. FHA will allow as little as 3.5% down on approved properties, but be leery of the high mortgage insurance associated with that loan. However, if that is the only path to ownership, you could always refinance down the road. FHA raised their loan limits to 287,500, so that is doable in many parts of Dallas. You can also sill find a good rate on a conventional mortgage for as little as 5% down, so your cash to close on a 200k home would be less than 15k all in. Obviously if you put 20 percent down or do an 80/20 loan, you can avoid private mortgage insurance and lower your payment. Also, talk to your accountant to see how the property tax write off might positively impact you as another incentive. Keep in mind that with a credit score over 740 combined, you can get approved for UP to 45% DTI on conventional and 55% DTI on FHA. If you make 87k pre-tax, just take 45% of that total and divide by 12. After that, deduct any recurring monthly debts such as minimum credit card payment, car payment, installment loans. Whatever you have left after that is the MAX you can spend per month on your mortgage. It is prudent to think about ability to pay if you were to lose a job, but you can't base your decision on that. Chances are, you'd still have at least one income coming in if that happened, and that's why you have a savings and emergency fund, which it sounds like you're already working on. A mortgage is the one legitimate debt because unlike cars, it's generally not a depreciating asset. Just stay within a realistic DTI and you'll be fine! I would say you should target 175k to 225k homes not knowing the specifics of your situation. You should definitely be able to find something in a safe neighborhood for that! However, as others have mentioned, unless you just put a TON down, your payments with escrowed property taxes will for sure be over over 1200/month. Talk to a reputable lender when you're ready and they'll get it worked out for you.
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Old 12-01-2014, 12:16 AM
 
990 posts, read 2,293,811 times
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Quote:
Originally Posted by baylorbear09 View Post
Hi, I'm looking for advice on home buying and affordable neighborhoods in Dallas.

My husband and I are in our late 20s. I work in downtown and he works near SMU. Our combined income is $87,000 and I don't think we'll ever be high earners like (it seems) many people on these boards.

We have no debt right now and have been renting a one bedroom condo in Oak Lawn for the past four years at well below the market rate. We paid off my student loans in April 2013 and since then have been socking away as much as we can for retirement and a down payment for a house. Now we're starting to think about having kids. We have a 6 month emergency fund and about $14k in our down payment savings account. By this time next year we should have around $32k in our down payment account.

I've been looking online at houses and neighborhoods, but I'm getting overwhelmed trying to find something that a) we can afford (monthly payment of $700 or less), b) isn't far from work, and c) has decent schools. I'm not convinced such a neighborhood exists for us.

We'd like something small/medium sized -- 1,100 to 1,400 square feet. We are not McMansion types and can't afford it, anyway. We don't want to live in the suburbs, although Richardson would probably be OK.

Is our only option is to buy a total dump and then do a bunch of DIY renovations? My dad is a home builder and would be able to help us a little and teach us how to do things, so that could be doable...

Any advice is appreciated!
I would look in Garland or Rowlett. You could get something pretty new for around that price with good schools. If the commute and a decent schools in prettier older neighborhood are more important, I would look at the neighborhoods along Ferguson Rd. Especially south of Buckner. Those are some pretty areas with some decent homes. Many have been renovated and actually seem to appreciate some. I have 3 friends now that have moved in that area. Just know, your income is pretty common. I don't know where all of these $100,000 thousandaire individuals come from.
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Old 12-01-2014, 06:55 AM
 
Location: Dallas, TX
2,825 posts, read 4,437,666 times
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87K seems low for these boards, but well above the national average OP. You're doing just fine! On the other hand, wanting to stay under 700 a month for your mortgage taxes and insurance in the metroplex in a safe area is going to be near impossible.
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Old 12-01-2014, 08:48 AM
 
Location: NYC area
565 posts, read 717,486 times
Reputation: 989
I have the perfect place for you to look into (if you are okay with just 2 bedrooms and a condo). Dallas Texas Homes For Sale & Dallas Real Estate - Zillow

I actually owned a condo in this adorable little complex in Lakewood in the early 2000's and you are within walking distances to SO many great places (including Whole Foods) and bike riding distance to even more--the tennis courts over on the other side of Lakewood, White Rock Lake, the Lakewood Theater, tons of restaurants, Greenville ave, etc.

Prices are *very* cheap for Lakewood, you have a pool, the condos are very well maintained and taxes are low. Good community, too...never had issues there and I owned there for 5-6 years. Two bedrooms are totally enough for you to live for the next 4-5 years and by that point, you might be making more and can upgrade.
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