just graduated...secured a job...can i buy? and should i buy? (San Jose: apartment)

[thxcvx]

Hi Everyone,


I just graduated...secured a job...can i buy a home? and should i buy?


I am looking to purchase a 1br or 2br condo in san jose, emeryville, fremont, milpitas, or sf.

i have good credit at 770. I am looking at either downpayment assistance through CalHFA and first time homebuyer help. I will either get a interest free loan from my mom for the downpayment or get downpayment assistance from CalHFA or maybe go with 0 down.

will 1 or 2br condos in the bay area go down any further? I have taken a look at a few remodeled condo complexes and they seem to be around what I can afford based on my current salary.

[DMenscha]

I think you ought to get yourself established a bit more first. It's a great idea to use the CA assistance and nice of your mom to gift you the down payment, but you really should have at least 6 months of operating expenses in savings before you even think about buying a home. A first job after graduation is very nice! Congratulations! what if after 6 months you find it's not for you? What if your employer decides you aren't right for them?

San Jose is the only housing market in CA where the median price actually increased from 2006 to 2007, but it didn't increase by much. In general home buying is a good thing for most people, but your current circumstance leads me to believe that you're a bit ahead of the curve. Try living frugally for the first six months of your new job and see how much cash you can put in the bank.

Good Luck to you no matter what you decide to do.

[thxcvx]

well I am 28 now because I took a few years off working for startups and went back to school later. This is why I want to buy a place soon. But if the market keeps tanking then this wouldnt be a good choice. The downpayment from my mom would not be a gift as I would have to pay her back monthly. Also if I sign another apartment contract then I would not be able to buy until that contract expires so therefore I hope the market does not come back up due to great interest rates and "people looking for great deals". I work for Chevron and I feel my job will be secure for many years to come.

[Freezer41]

a lender would likely need to see that the down payment is a gift and not be paid back so that won't help you really

[thxcvx]

well then ill just deposit in portions before i prequalify

[DMenscha]

Just get a gift letter from your mother. You can still pay her off later. The lenders will inquire about where money came from if it magically appears in your account in the 6 months prior to your applying for the loan.

I had an attorney who purchased a home (he had enough in his account to buy it twice over) but a portion of the money came from settling his fathers estate and the lender was a real noob about it.

[madt]

why don't you just rent month to month