looking for a condo/townhome near gaithersburg or college park (to rent, HOA fees)

[lenovo2000]

I will spend a good amount of time in college park and gaithersburg so I would like to live in a city near there.

I want to find a location that will give me the best results for resell in the future.

I'm also looking for somewhere nice. I'd like the place to look classy and be in a good neighborhood.

let me give you some background so you know my finances.

$9k saved, no car payment etc... $50 for cell, $100 for insurance and plan to pay the minimum on student loans (around $30 a month i believe)
starting work with a salary of $64k

From what i understand there is a first-time buyers loan where you only have to pay 3.5% down payment of the total cost.

I'm looking for a 2bed 2bath, my friend is going to rent out one of the rooms from me.

With that said what cities and streets are the "good" areas. And what do you think I can afford.

I hear damascus, rockville and olney are good. What areas in rockville? Would it be hard to rent a room in damascus if my friends moves in the future?

thanks in advance

[beilart]

The 3.5% is an FHA loan and since they have tightened up the rules on condos and townhouses, the one you choose may not qualify for that loan. On 64K a year, you won't qualify for more than 100K loan on a condo and probably less so you will not find classy and nice for that amount in Maryland. I would say, rent for a while and save more money and wait until your salary goes a bit higher before you try to purchase something. Then you will have the 20% down to get a better home.

[mamaecho]

only a 100k for a loan? really?

[beilart]

On 64K a year? With the tightening of the banks and lending? 100K would be pushing it

[mamaecho]

We just got pre approved for 200k and we only make 55k.

[beilart]

Good. I think that is wonderful but being pre approved does not mean that a lender is actually going to lend you 200K for a home on a 55K a year salary. I hope your lender does.

[lenovo2000]

btw i'm single.
in 6 months i can get $10k. that would bring me up to $19k in savings.

[mamaecho]

Originally Posted by beilart

Good. I think that is wonderful but being pre approved does not mean that a lender is actually going to lend you 200K for a home on a 55K a year salary. I hope your lender does.

Well we won't be buying a home for 200k... at all. We know what we can afford

[beilart]

Lenovo, the best thing to do is go over to one of the lender sites (anyone will do) and use their online mortgage calculator. Start at 200K for a home as the purchase price then see what your payments would be at 20% down. That will give you an idea of the home you can afford. You might also try the 3.5 % down and see where that takes you. Your 19K is an excellent start. Don't forget you have closing costs on top of the down payment. As well, take into consideration the HOA fees on a condo.

[beilart]

Originally Posted by mamaecho

Well we won't be buying a home for 200k... at all. We know what we can afford

And that is where you are smart and people now upside down on their homes were crazy. It is nice to know that there are young folks out there who actually live within a budget like us old folks do.