Nice excuse.
Only works if you want to make 20% down instead of 3%[0]
[0] https://www.knowyouroptions.com/buy-overview/affordable-mort...
Only works if you want to make 20% down instead of 3%[0]
[0] https://www.knowyouroptions.com/buy-overview/affordable-mort...
I mean, I get the point of saying that (funding from F&F doesn’t disqualify the applicant), but man does it feel like a quasi-government agency is suggesting needy borrowers should just ask their parents for money.
I went into a place that was selling for around 300k. I was going to offer as much as 325. I was also willing to go 5k above what the place would appraise for. This matters because you can't get a loan for above a place is worth.
The place sold for nearly 375k.
If it appraised for 325, the buyer is on the hook for an *additional* 50k that they have to pay in cash at time of signing.
You can't just not have lots of spare money in this market.
And you've said in several places how engineers make 200k+ after 5 years. Maybe in total compensation and only in FAANG; but there are a loooot of engineering companies in Washington and the Seattle area that aren't getting hundreds of thousands of dollars in stock that's increased 5-10 fold in the last 2 years.
But if you're single, your annual after-tax take-home is ~95k, assuming you max out your 401k contribution, and ~110k, assuming you don't contribute at all. Saving 50% of that does not even require living particularly frugally. That gets you to the top-end of the required down payment in 2 years.
Even with saving, though, I should probably save at least one more year to have an emergency fund again, so it's probably more like 3 years, but your point still stands.