Buying my first home

Yeah, you definitely should try and get CC covered. That being said, when I bought my first home, I was in the same boat. I did pay my required CC (got the seller to pay 1/2), but I only put 3% down and did an FHA loan. I also knew that it wouldn't be my forever house, and I got lucky and actually made out pretty good on it when I sold it. But I am in the same situation as you (saving for a ring, etc.) and won't have the traditional 20% down when I buy my next home either. I am shooting for 10%.

There are different options too. You could look into an 80/20 loan, where the 20% "down payment" is in the form of a Home Equity Line of Credit (HELOC). Then when you pay that off, you still have the HELOC available to you. Then you can use the HELOC to do things like buy a car, home improvements, etc...and the interest you pay on it is still tax-deductible (most of the time).

EDIT: The 80/20 product isn't as widely available anymore. But you might still be able to find something that would allow you to set up a HELOC of some kind if you wanted.

 

Unfortunately a lot of those are being sold to cash-heavy buyers at this time. A bank is never going to take an offer that's contingent upon financing when they can get one that brings more cash to the table, especially if they are financing it. I think a lot of the foreclosure "boom" is over at this point.

 

This. We have built over 100k right now and still cannot find the right deal quick enough to snatch up. Rich get richer, will never change

 

Don't be afraid to be creative with your offer. You can write pretty much anything into the offer "I'll give you x amount if you include the boat" Also stay away from ARMs, and put it on a 15year or less mortgage.
Scrape together the biggest down payment possible, 20% equity needed to avoid PMI payments.

 

i second this..even with my second home i used an agent..it sounds like your hard set on that one so it wouldn't hurt to check out a few more in the area and compare

 

ya I would never buy one without 20% down again. Just annoying to pay the fees

 

Every time I see the home prices in the mainland I get jealous and want to move.

At the same price you're looking to spend you can get a 800 square foot home here on the island that looks like it's about to fall apart.

Good luck on your purchase of your first home

 

I luld at that. You're exactly right, prolly find one that price and sq. ft. around deeeep Waipahu area. I used to live Ewa Beach and moved to the mainland for that reason...got priced right out the state.

 

My gf's aunty keeps trying to get us to move next door in Texas. It's so tempting, the homes there are crazy cheap (compared to Hawaii that is)!

 

Unfortunately, many young people don't have the 20% down. I agree, in a perfect world that would be ideal, but there are a lot of benefits someone can gain from owning a home that outweigh the cost of PMI. Plus, the amount of time it takes to save 20% can keep someone from owning who otherwise could for 10+ years. For instance, I consider myself a heavy saver for my generation. I save about $1k every month in liquid cash, after retirement, investments, etc. That being said, if I wanted to buy a decent house here in Denver, I'm looking at around $300k. 20% would take me 5 years to save up, and that's dumping all my cash into the property. I'd much rather put a 5% or 10% downpayment down, keep some liquid cash, and reap the benefits of the interest on my tax return. Then when the LTV gets to where it needs to be, refinance to get out of the PMI. Perfect? No, but I think it's hard for a lot of young people to save enough for 20% down on a first, or even second, home.

 

Just to update on this a little I put an offer in on a different home this evening. Much bigger with a really open floor plan and an awesome master bedroom. 3 bed, 2 bath like the other but this one is 1700 square ft and lists at 138k. Only downside is no basement. It was built in 98 but has only been lived in for the last 2 years so there is virtually no wear and tear. I offered 128k and asked for 4k closing and a 1 year home warranty. Should hear back by tomorrow evening!

 

That sounds like a good offer, hope it works out and i like the open floor plan design also.

 

Good luck, OP. Looks like a really nice house. I wish CA prices were like that.

 

No doubt T Fades, that is a 500,000+ home in Simi Valley

 

Thanks guys! They actually already counter offered at 135k, will pay 4k closing, $470 1 year home warranty, but want 1k earnest and $200 due dillegence.

I think I am going to counter at 131k and agree to the rest of their terms.

 

That house is an EASY 500k+ house here. Fuck man i would buy one outright right now lol imagine that.

 

Damn yall's home prices are insane! I could never be a homeowner there. I've always known houses here are cheap but I didn't realize I had it so good! My grandparents built a 4500 sq ft home for around 350k...

 

Maybe wages are just far off. I made 106k last year. My house was just appraised at 273, paid 203 few years back as a foreclosure

 

That's true. Higher pay generally goes with higher costs of living

 

Almost makes me want to move there lol. Good luck