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Old 02-12-2018, 10:56 AM
 
Location: Salem, OR
13,351 posts, read 30,012,858 times
Reputation: 11108

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Quote:
Originally Posted by Ohiogirl81 View Post
The worst part of this scenario is the assumption that his dad will travel from Kansas to renovate the bathroom.
I see parents do this for their kids ALL the time. Very common. I've had parents, who were electricians, rewire old homes for their kids, etc. There are some awesome parents/families out there that do exactly this for their kids.
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Old 02-12-2018, 11:21 AM
 
Location: Northern Virginia
3,907 posts, read 4,175,653 times
Reputation: 8235
Quote:
Originally Posted by Ohiogirl81 View Post
The worst part of this scenario is the assumption that his dad will travel from Kansas to renovate the bathroom.
Perhaps it isn't an assumption.
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Old 02-12-2018, 01:11 PM
 
Location: somewhere flat
1,218 posts, read 998,223 times
Reputation: 3436
Quote:
Originally Posted by brava4 View Post
I am not a home owner but have enough family members who are so I know what some of the up/downs are. Anyway, my question...


I work with a young man, 30, who is married. He has started the process of looking for a house in Md. and plans on using a home mortgage through his military options. We looked online at some of the homes he planned to see this past Friday. While looking he mentioned that one of them needed a bathroom renovated and that his father would come from Kansas and do the work. He then said he would have to scrounge around and come up with a few thousand to buy supplies, fixtures etc.,. He said he was putting nothing down and had no money. I was quite surprised but just said nothing but thought omg what a possible mess this could be.


Is it just me or does this sound like a recipe for disaster? Do people still do this?


On an aside, his dog needs some surgery and he said he had to wait for tax refund to have it done, no other money.


Many working poor people live that way. And some homeowners fall into that category. If you look at low end furniture stores, and used car places, they offer tax return sales.

As far as owning v. renting. Rent goes down the toilet and offers less of a safety net. In many regions, rent is more, monthly, than mortgage.
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Old 02-12-2018, 03:09 PM
 
4,996 posts, read 5,518,206 times
Reputation: 12411
Talk is cheap...and entertaining. Stay tuned to see if he actually follows through. There are a lot of checks and balances in the system these days to prevent people from destroying themselves. Some still manage to do so. Will make for interesting drama if he actually pulls it off.
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Old 02-12-2018, 03:33 PM
 
7,706 posts, read 6,598,451 times
Reputation: 16415
Millions of young people have used their VA loan to buy homes starting with the ones returning from WWII. They are young, and just starting out. For the vast majority of them, it works out just fine. That is the purpose of the VA loans. I used my VA loan rights, 4 different times (a vet got his VA rights back when and if the loan was paid off), and even when I had enough money to make a big down payment, as did a lot of other vets. With the VA loan, you get a lower interest rate, and other benefits.

As far as his father helping the son with the bathroom, this happens all the time. I have done it for my kids, and my father helped me when I was young.

After WWII, a whole new industry came about, to build homes for returning vets, and the housing tracts came into being. It made mass production of homes a new industry that we had never had. And they all bought them with no money down, and interest rates below normal. Average price back then was $9,000 to $15,000. A home my wife and I bought in 1956, for $13,750, resold 10 years ago for $850,000 as a tear down in Cupertino California (heart of Silicon Valley).

The VA loan getting a young family into a home, is how many young men and woman got a start in life. It gave them permanence, and put them into a positions to own a home and start building equity. When we bought our first home, we bought if with no money down, and below normal interest rates at 3%. The total PITI payments, were less than 2/3rds of what it would cost to rent. And things worked out just fine, not only for us but for millions of young people like the man you are talking about.

A lot of young men and women, join the military to get benefits when they muster out. Benefits like the VA loan to buy a home, Education Benefits so they can go to college without huge debt, and the VA medical system where they can get medical care and medicine. In my younger days I have used all three. I joined the Navy, when my draft notice was in the post office as I felt I would rather be where they carried my bed around for me, rather than have to carry it around on my back and use it after I dug a fox hole to keep from being shot. I did not join for those VA benefits, but sure used them after I got out. Using them is how a lot of young people get a big jump on life over those that did not go to the military.
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Old 02-12-2018, 03:44 PM
 
Location: Saint John, IN
8,355 posts, read 2,211,992 times
Reputation: 8957
Quote:
Originally Posted by emm74 View Post
I don't think 0 down is automatically bad when someone qualified for a VA loan. But not having cash on hand to cover the inevitable expenses is a really, really bad idea.

But

Not your circus, not your monkeys.

I agree! The Veterans program is good, but to not have any funds to back up repairs is not and could be a recipe for disaster! Just the fact that all he can afford is a home that needs updating and work, yet he doesn't have the funds to do the work should tell him he needs to wait. But as emm74 said, it's really none of your business.
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Old 02-12-2018, 03:54 PM
 
Location: Boise, ID
7,887 posts, read 21,106,531 times
Reputation: 8876
For what it is worth, you don't know whether buying this house will actually decrease his expenses.
Maybe buying this house will cost less than whatever he is currently paying for housing, so he can actually afford to spend something on the repairs.
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Old 02-13-2018, 05:56 PM
 
3,956 posts, read 4,051,570 times
Reputation: 8340
Quote:
Originally Posted by HokieFan View Post
Perhaps it isn't an assumption.


I'm the OP, this guy said his Dad likes doing this stuff and he wouldn't have a problem with it.
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Old 02-13-2018, 06:01 PM
 
3,956 posts, read 4,051,570 times
Reputation: 8340
Quote:
Originally Posted by CGab View Post
I agree! The Veterans program is good, but to not have any funds to back up repairs is not and could be a recipe for disaster! Just the fact that all he can afford is a home that needs updating and work, yet he doesn't have the funds to do the work should tell him he needs to wait. But as emm74 said, it's really none of your business.


He has been talking about it, showing co-workers houses etc.,... he has made it everyone's business. HENCE my thread.
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Old 02-14-2018, 09:52 AM
 
240 posts, read 88,926 times
Reputation: 274
Everyone has a different threshold for risk. When I bought my first home (small townhome) I had less than $2000 down payment and no money saved up for unexpected expenses. I did have good credit and, in the instance of an emergency with one of the big ticket home repair items, could have paid with credit card or financing in a pinch. If I had been renting, I would have had peace of mind of no repairs but, in my area, you usually have to plan on moving each year if you want to avoid a rent hike and my mortgage was less expensive than rent on a smaller space. For a couple years, I rented out my furnished second bedroom to a roommate at a flat rate ($500/month inc. utilities) and was able to live very comfortably. After I met my husband, we updated that townhome from top to bottom which was a great learning experience because it taught us what types of things we could live with in a new home because we knew we could update ourselves rather than having to pay more for labor. It also taught us how to install cabinets, how to install flooring, how to do a professional job when painting, and to expect that nothing is ever square When I sold that home, the equity gained was very helpful to get into our next more expensive home.

Yes it was risky. I could have lost my job in the recession but having a roommate would have allowed me to work a much more low paying job and still make ends meet. When you rent the same things can happen and losing an apartment can also be very detrimental to credit. In hindsight, my risky decision has put me further ahead than I would have been otherwise and I still recommend buying when you can get something that doesn't max out your budget.

I forgot to add, sometimes over the years I have been frustrated when comparing myself to friends and others who have had more at an early age because I have always worked hard to move forward in my career and better myself. But, some of the others I know had a lot of help from family (bought their first car, helped pay for college, wedding, down payment on house, etc.) which my family was unable to do. But I feel pretty proud to be a homeowner for the third time, all of my own doing. The house we just bought this year is in a great location and a nice neighborhood that, just a few years ago, I never pictured being able to afford.
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