Priced out (Pittsburgh, McKeesport, Indiana: sale, 2014, to rent)

[charisb]

Originally Posted by SteelCityRising

How did they save up for a down payment and closing costs while paying twice what they would on their monthly mortgage payment in rent? I know it would be cheaper for us to buy, for example, but covering thousands of dollars in closing costs in addition to a hefty down payment is looking to realistically not be viable for us while we're overpaying in rent.

You have to really suffer for a while. Move to a cheaper and less desirable rental. No more eating out. No cable. It sucks but is do-able if you really want to buy a house.

[Hopes]

Originally Posted by charisb

You have to really suffer for a while.

No pain, no gain!

[ferraris]

Originally Posted by charisb

You have to really suffer for a while. Move to a cheaper and less desirable rental. No more eating out. No cable. It sucks but is do-able if you really want to buy a house.

Obviously belt tightening won't work for every budget, but for most people there is enough wiggle room to save for a house over time. Simply cutting cable, or one restaurant meal a week, or getting a cheaper car could save enough to have a down payment and closing costs saved up in just a few years.

[Moby Hick]

Originally Posted by charisb

You have to really suffer for a while. Move to a cheaper and less desirable rental. No more eating out. No cable. It sucks but is do-able if you really want to buy a house.

I don't remember it being that hard. They used to just give you money to buy a house if you had a job and could make it through the closing without passing out.

[ferraris]

Originally Posted by Moby Hick

I don't remember it being that hard. They used to just give you money to buy a house if you had a job and could make it through the closing without passing out.

Key words "used to"...

[alastad]

Originally Posted by PreservationPioneer

You can find apartments in certain parts of the metro for less than $400 a month.

Is there anywhere in the metro area where you can rent to own a 2br house or bigger that allows cats and is no more than $500 a month plus utilities?

[Moby Hick]

Originally Posted by ferraris

Key words "used to"...

I'm just saying, waiting around for bankers to get irresponsible again sure sounds a lot more realistic than never going out to restaurants.

[Pitt Chick]

My son had 5% down and got a house right out of college, in Coraopolis. We were surprised when he had no trouble buying!
His PMI for his 3 BR house is less than half of what a decent 2 BR would rent for.

This was in 2010.

[SteelCityRising]

Originally Posted by ferraris

Key words "used to"...

Yep. Now a bank would look at my ~650 credit score and my highly-variable income as an independent contractor and freak out. Never mind the fact that I could afford to pay rent up to $1,000/month and would be looking to buy a house with a monthly obligation roughly half that.

I can't wait until the lending pendulum swings back towards the center again. We shouldn't be giving dental office receptionists with stellar credit (but a $40,000 annual income) $400,000 mortgages (as it was not all that long ago). At the same time we shouldn't deny someone with average credit and a middle-class income the opportunity to buy a ~$50,000 home, either (as is often the case now). With the economy strengthening hopefully lenders will be willing to take a few more risks soon.

[Hopes]

Originally Posted by Moby Hick

I'm just saying, waiting around for bankers to get irresponsible again sure sounds a lot more realistic than never going out to restaurants.

Is it really that hard to resist restaurants or to restrict them to once or twice a month?