Got a call from a financing company I’ve been working with to see how much house I can afford. Basically, it works out like this:
Most mobile home parks have space rent of $850-$1,000 per month. Some include utilities, some don’t.
Mobile home loans are max of 20 years.
Mobile home loans usually require 25% down, more if the home is older (which is interpreted as 1977 or older)
I have $5,000 saved up, putting away about $900 each month.
With my income, according to financial-company-lady, I need to spend no more than $1,200 a month on mortgage+space rent (which is one paycheck after all the taxes, insurance, 401(k) and such).
If space rent is $850, that leaves me $350 to spend on my mortgage. Assuming that the home price is around $55,000 (average price for a mobile home), I would need a down payment of $13,750 (25%). At the rate of $900 per month, it’ll take me another 9 months to save up what I need for the down payment. Even if I upped my savings to $1200 a month, that’s still 7 months of saving. And I have a deadline of moving out at the end of January.
And that’s just the down payment; that’s not including all the fun fees that come with buying a home/getting a loan.
Not to mention the fact that I can’t seem to even save up the amount I’d have to spend on my rent+mortgage. I mean, obviously I’ll stop spending money when I have an actual real bill to spend it on other than car insurance, cell phone bill, Em’s dance class and my tithe to my church (yes, I count that as a real bill; I made a committment), but I haven’t been able to do that yet. The $300 from each paycheck plus the extra $300 I’m trying to put away every 2 weeks plus the barelythere child support isn’t all that much. But there seems to always be something else that needs my money. Legal fees, car maintainence, shoes/clothes for a kid that grows non-stop, etc.
And I don’t want to borrow from people, either. Sure, that raises my down payment and lowers the amount borrowed from the bank, but it’s still a loan I have to pay back to someone. Doesn’t make sense to me.
The main problem I’m having is finding a house I want at less than $55,000. It’s just about impossible. Financial-company-lady says that if I want to own that much (or more) of a house, I need a co-buyer, not a co-signer. Co-signing won’t help me have less money to pay off my loan. My credit’s ok enough that I don’t need the co-signer. Bascially I need someone else to live in my house with me and be on the title with me, who makes more money than me and can be the “responsible party” for the loan. Which in basic terms means, “You don’t make enough money to buy your own house. Find a “grown-up.””
Looks like I’ll be looking to live in apartment. And never getting out
P.S. In case you couldn’t tell, this is a rant.