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I am 25 years old.

I currently rent a 3 bedroom home for 850 per month. I rent out the other 2 rooms, one for 350 and the other for 400. There is 100 left to pay out of my pocket and I get the master bedroom.

I want to continue to do this, but with my own home. I have no immediate plans for starting a family any time in the near future, and I am pretty satisfied with the place I live in (Savannah, GA).

I do realize that I should not tie myself down to a place I may end up leaving in pursuit of a better career path. But I figure that if in five years I decided to move I could simply sell or continue to rent out the house.

Homes are just so low in price nowadays…

My problem is that I have not much credit history. I have only one source of credit: a secured credit card from Wells Fargo that I’ve only been using for 10 months. I have never had any other cards or loans or anything.

I figure that I could probably get a mortgage loan by signing together with my girlfriend (who lives 4 hours away) and with the help of a co-signer (I already know who that would be) that I would qualify… She would like to make an investment as well and she has better credit history than I do (she has had several credit cards for a few years now).

Does this sound too difficult to do? Too unwise? We wouldn’t be doing it for our relationship’s sake, but for investment purposes. We are both mature responsible adults and would continue payments even if we were to brake up. We’ve discussed it already.

What are your thoughts fellow people of Yahoo!?

5 Thoughts on Would you buy a house in my shoes?
  1. Reply
    February 7, 2013 at 12:20 am

    I would say no, everyone I know who has bought a house is having such a hard time. Things in the world are going to get harder and paying off a mortgage wont be easy.

    Especially if you end up losing your job, which is very possible these days.

    Follow your gut, if it feels right do it. If there is the slightest doubt, don’t.

  2. Reply
    February 7, 2013 at 12:22 am

    Yes I would buy if I were you. But only at a value that you can comfortably repay the loan without the help of renters.

    You will need likely need to be financed with an FHA loan using alternative forms of credits. Instead of using lines of credit, you can use utility bills and rent payment histories, etc. As long as you have had no late payments in the past 12 months, and don’t owe much to past creditors you can get qualified now. Be pro-active and sit down with a loan officer to discuss your options even if you are only in the planning stages.

  3. Reply
    February 7, 2013 at 12:24 am

    Buying a property has always been a good investment…. as long as you don’t over stretch yourself……….however I would never buy with another person unless you have a legally fully signed contract of exactly what happens in all instances………. thing is regardless of that if the other person decides to break their side of the contract and not pay their portion of the mortgage, then you will legally have to pay it……….so you then can’t afford to sue them as it costs too much, takes too long………

    I have an investment property,all mine, no shared ownership and rented….. house insurance, tenant insurance, maintenance, legal testing of utilities annually and I have rental management…they are all costs before I get the money ( which I have no mortgage on it, so income)
    I would say, investigate what you can get as far as mortgage before you get others to pitch in………..get financial advice from a local who knows the market where you are, who knows the likely future rents and rental needs….. what I am saying is do your homework, research and research again, before you do it…………

  4. Reply
    February 7, 2013 at 1:14 am

    Buying Real Estate investments is not unwise if you treat it as a business and keep your risks low. Partner ships are routinely formed to buy property. Having a good partner ship agreement put into place before (exit agreement,who pays what, who looks after the property, who gets financial statements etc) is a must to be successful. Everybody has to know their role.
    You mentioned the property is really cheap. Have you looked into it and found out why? Is there any chance for a recovery? Knowing the economics of your area before you buy into it is a must. Just because a property is cheap doesn’t make it a good deal. If jobs are being lost, industry is moving out, this is a red flag. This is part of keeping your risk low.
    You may also want to get a team in place to help you with the purchase prior to buying (realtor, mortgage broker,home inspector, lawyer) The knowledge they have will make you a success. You can talk to your mortgage broker now to see what you really need and gather all the cost of purchasing a home. Once you have a working deal together present it to your partners for discussion.

  5. Reply
    February 7, 2013 at 1:58 am

    Good plan, but you need to talk to a lender to see if you can qualify for a loan before you get too excited.

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