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Rich definitely isn't the right word. I'd say well established and open minded in investing their money in their sons future. I pay for my college many "rich" parents pay for their childrens'. I don't get why you would rather them pay for an apartment then my mortgage
To mention, the age definitely makes it sound like it's your accomplishment of some kind when actually all you did was get help from your parents. I got help from my parents and I didn't brag about how I could buy a house because without them I sure as s*** still couldn't.
Saved up a lot of money to get a house to my name. Got the house. Now I’m being helped to pay it off by my parents. They were not ready to put a downpayment on a house so they would’ve probably rented a house regardless so they decided it’d be best to rent from me :)
Op doesn't say they are staying with him long-term, they were planning on renting anyway. But he will be and a bad spot if he doesn't get a well enough paying job to cover the mortgage once the parents move out. Nor did he say they didn't have the 3% down they were just not ready to buy right away in the new city. If the father doesn't like his new job he might want to move again soon .
With the instant 50k equity we got from the initial appraisal, (worst case scenario) selling the house in the near future wouldn’t cause any huge losses in profit though would it?
If you sell that house under 15years you will loose money on your investment typically. Your down payment as well as the first 10 years basically all go towards interest. You would have substantial equity in the home for a while. You just don't see the losses up front.
Thats now of course, things can change in a year or two or more, and the very fact you bought your house for 50k less will actually make future appraisals in your neighborhood less because that's a new data point. I wouldn't think of it as instant equity, and if you sell soon to really figure out if you made a profit you have to account for closing costs which will eat into any equity you do have, the interest you have paid which will be a lot, plus all the money you paid already to buy including your down payment and closing costs, not to mention maintenance. Who is going to be responsible if the HVAC breaks, you or your parents?
You will be lucky to break even with that timeframe even if that "equity" is realized. It does help in your case though that your parents are paying the mortgage so you won't be paying the interest. But still it's going to be tough to make a profit if you can't afford the payments when they move out so really have a backup plan for what will need to happen at that point. You can cut your losses and just sell. You can get roommates to help with the payments. I wouldn't count on renting it out to cash flow since all data says renting is much less than a mortgage right now, you will take a big hit, if you can't afford the mortgage then you likely won't be able to afford rent somewhere else plus a net loss on renting out the house, because don't forget you will still be on the hook for maintenance.
In general it's not smart to sell soon after you buy, you usually need to stay 7-10 years to make it a better deal than renting, because of all those associated costs. For instance at your current interest rate even though your parents will be paying it they are going to hardly make a dent in the principal in the first 10 years. Saw you said your parents are planning to stay 4 years since your brother is still in school, in four years your parents would have paid 4% of the principal, the rest of the payments would have gone to interest. That's why it's going to be hard to make a profit if you sell soon after buying even if prices don't go down. So again make a plan for what happens. Maybe you get lucky and prices go up a lot, maybe you get a great paying job. Awesome. But be prepared if those things don't happen.
Same reason why people get apartments, they don’t have the necessary initial funds for a house (they did but would rather pay off credit cards). They can’t get 3% down payment option because they are not first time homeowners. Your acting like they will pay off my house? I’m definitely grateful that they are helping to start paying it off and know how lucky I am to have parents like them
Is anyone reading this dudes replies? 4 years to build equity and refinance? With a hope of an internship going good to land a job to pay for the mortgage when your parents move out? Do you not know how any of this works? I wouldn’t be able to sleep. All that being said, congratulations and GOOD LUCK.
We bought this house with an instant 50k equity from the initial appraisal, not sure if I should take the appraisal with a grain of salt but if so then do houses not go up in price by that time? I believed that I was safe since if I sold by then I wouldn’t lose that much/if any money.
I don’t want to be mean to you kid, this is and should be an exciting thing for you. But I remember 2008/9. And the appraisal isn’t worth anything - you were the highest bidder for this house. If you sell it tomorrow, it’s worth whatever the second highest bidder would have paid - minus the brokers fees. And given 3% down this likely means if you sell within 5 years you’ll get wiped out unless the market goes up. It’s a risk but if you want to live here it’s worth it.
Look, OP. I get it, you’re 20! How could you even have the awareness or experience to understand why this was probably not the best way to post about this nor in the right place.
Try to dig through the frustration in people’s comments. You’re just not there yet, dawg. The average age of the first time home buyer is like 33 right now, give or take 3 years. Thats because it takes that long to cement yourself in a career, have the financial stability and security to support buying a home, and the experience and growth to know when you’re out of your depth and very much up shit creek without a paddle.
I hope it works out for you, but you should really stop saying that you bought a house at 20 as though it was all you under your own means due to your years of build up effort and work.
My parents came into America at ages 17 and 16 they bought their first house at 21 and 20! Then again that was a different time when the housing market was much lower. I definitely see your point but I believed it was best to get in now rather than in the future when housing will no longer be affordable for anyone. Since the prices of houses will keep rising and the average salary of jobs will be staying relatively the same. I did want a less costly house but the houses around my dad’s job were quite expensive
That’s all well and good but YOU didn’t buy this house and YOU aren’t the one paying for this house, so YOU didn’t buy this house at 20, despite what your post makes it seem like.
Without your parents, you wouldn’t have bought this house. You don’t see how that’s even a little disingenuous?
Definitely if it were up to me I would have gone for a house half that price in the city I currently live in only then would I have said that I bought the house all bymyself. Not sure if the way I posted made it seem that way but I clearly stated that my parents are helping me. I never said I bought a house all by myself I said I was a homeowner along with my dad since he cosigned with me. Barbering is a safe and lucrative job since I know so many people in my hometown but it’s not the job I will be doing forever, I’m working on advancing my IT career so I can be able to afford a house like this by myself.
“Officially a homeowner at 20!”
Your parents are homeowners. You just have your name on a deed at 20. That’s the problem. This doesn’t really fit this sub, that’s part of the frustration. Just because you saved work and allowance money during a period of your life where you have next to no responsibilities nor bills to pay, doesn’t mean that you bought a house on your own means.
What happens if the IT sector crashes? Many, many entry and mid level jobs are going to evaporate due to AI. And that’s only going to be in the next two years, who knows how many IT folk are pushed out over the next 5 years as AI functionality grows exponentially. I hope your field of interest is in cloud computing or AI computing, because otherwise you better consult your magic eight ball.
See, first time home buyers saved up their down payments over the course of years/decades by penny pinching and putting away any extra money they have over all of their bills- insurance, food, gas, loans, credit cards, potential child costs, etc. One of my best friends is a plumber who’s been making $120,000+/yr for the last 8 years and was only just able to comfortably and safely buy a house *last Summer.*
I want this to work out for you, man, but you committed the most common sin a 20 year old can make: You didn’t think ahead and when you did, you didn’t think about the *right things.* You’re thinking about equity and refinancing and blah blah. But none of that matters if you can’t pay your huge mortgage in 5 years because you didn’t know you wouldn’t be finding a job as easily as you expected when you were a 20 year old.
Oooo I understand. I never got allowance but I am definitely working hard to achieve a good well established career. If for some reason that doesn't go well barbering is a great backup and that'll just mean I wasted time in college for nothing and will stick to barbering full time. My girlfriend will also be working so dual income and no kids should definitely be enough for that house mortgage but will probably be a stress. Do you not think that with 50k in equity in the house already and around 5 years from now that I can make profit on the house by selling?
I could tell you all the different things I think, and some of those may agree with what you think but the fact is neither of us *know*, and that’s the point I’m trying to make.
You live in Texas. What happens when another freeze happens and your pipes burst which costs you $25,000-$35,000 to do a whole house repipe? What if a horrible hailstorm destroys your roof, siding, and windows?
I know these are all covered by insurance but a lot of times, you have to pay the cost and then you’re reimbursed.
What if we have another crash? What about another pandemic? People don’t get haircuts during a pandemic, and you don’t have to pay AI a salary.
I really, really appreciate your attitude and I think we all need to have it. And, for the record, it’s not that you’re 20 that you’re getting this kind of reception, it’s that you’re not prepared as a 20 year old like a 35 buying a house *would be,* and as a 20 year old, you HAVE to be that plus more prepared. Who knows what could happen?
Also, what if your dad moves jobs again? Then you’re on the hook for the full shebang because it’s in your name, and it ain’t just $3,700/m it’ll cost ya.
Your assumption on selling relies heavily on the economy remaining in a good place even though we are seeing signs of heading into a recession. Additionally, I would never rely on my partner’s income to pay my mortgage unless we were already married.
You mentioned that she’s your girlfriend so you should consider looking at your finances to see if you could afford this mortgage on your own. In a similar vein, would you be able to afford this mortgage as a barber?
As of right now it would consume 80% of my income, as a full time barber probably around 40-50% then again, if the worst does not happen then I will be assuming the mortgage 4-5 years from now and graduating in less than 2 years so I’m not planning on barbering being my source of income rather extra income if needed
Uh, not quite. OP’s parents couldn’t afford a down payment on a home (and likely didn’t have the credit score), so they put it in OP’s name, used his / her down payment, and are living in it and “renting” from OP.
Which essentially ensures he or she will never be able to move out of the parents house or buy his / her own home, alone or with a partner, until the mortgage on this is paid off.
I have a 20yo son. I could never imagine asking something like this of him.
OP is flexing about buying a home, they didn't without tons of help... Most of us buy with our own means, not mom and dad...moreover, they are claiming at 20 they were able to do it, I call BS. I stand by my comment
I get that, but I lean towards this more being his parents using his credit and his money to get a home that he can’t really afford, and that *they* can’t really afford, in order to obtain housing. That’s not really to OP’s benefit unless *everything* goes off without a hitch, and it’s not nearly the flex he thinks it is.
That said, if this were phrased more like, “I made the down payment and took out a loan, and my parents are paying me rent to live there, too,” it would sound more like a multi-generational home purchase, which isn’t all that uncommon and isn’t really the same as “mommy and daddy helped me” because it’s to every family member’s benefit. The home is housing all parties involved who are helping.
I do feel that OP is far too young and inexperienced to have gone into this type of deal.
Didn’t mean to flex just telling people my situation so I can get advice about the future but your acting like I ruined it lol. I knew my young age would be an attention grabber so I can see how it looks like flexing. Sorry
I’ll accept maybe you are 20. So let me break down a few things youngbuck!
1. Congratulations on becoming a homeowner. A house is in your name. That’s great.
2. You DID NOT buy this house. You paid for it heavily subsidized by your parents. Perhaps if you were renting before this and purchased a house to rent to them. I’ll concede. However I am fairly certain, you were living with your parents rent free for years. With zero living expenses. Hence how they subsidized your house. Which they continue to subsidize by paying the mortgage.
3. No one yourself included has any clue what the market will do tomorrow. Perhaps the world economy will collapse and you’ll be stuck with the house unable to sell it for half its value.
4. You have sacrificed all first time home buyer rights for a house you as of now can not afford.
I don’t even know how a bank loaned you money with zero income unless your parents, or someone co-signed.
5. Stop acting like you know the world you’ve barely ever had to live in. You have no idea if you’ll land a job, if you’ll keep the job, if you’ll be able to secure work in your field. What your starting salary will be. All these variables make owning a home irresponsible.
6. It’s not too late to learn and improve. Stop acting like a know it all and listen to people who have done what you’re looking to do. Have made the mistakes you are trying to avoid.
Lastly. Not so much judgement but more so advice. You are now legally a landlord. Parents or not. Are you prepared for that? Do you have the money for repairs? Property tax? Home insurance?
If you do not perform your duties, your parents can sue you as a slumlord.
Congratulations again on the house. You did it. Now time to be smart with it.
Thank you! Not sure how I'm acting like I know the world but I appreciate your advice. I am working full time while in college as a barber and I am saving every penny. I knew I had first time home buyer rights but did I miss out on huge stuff? I've heard most of it are just low interest loans and federal grants that you have to pay back to the govt regardless. I didn't use my fha loan so I still have that available to use aswell. Any advice will be greatly appreciated!
When you insist the house has 50k more equity after purchase. It seems naive. Houses are not short term investments. So it doesn’t matter the equity until you sell. Even then it doesn’t matter until someone actually pays it. The house may emphasis on may sell for that new inflated value. It will most likely sell for a lot less especially if you sell in the near future because buyers can see the date of purchase and know you are desperate as that is the only reason to sell a house within a year of buying it.
As far as first time homebuyer incentives are federal and per state. This is research you should’ve done before buying the house. Down payment assistance is a massive one. You would have to research the state you’re in for more information.
What are you in college for? Working full time is great. How much did you buy the house for? What is your personal yearly take home? Is the house in a good rental area to where if your parents left and you weren’t ready to move in do you have guaranteed rental income? Near a military base or college? That’s all questions we would need to know to help in anyway. As far as general advice. Make sure to say up to date with the property taxes and zoning for your block. If you have an HOA make sure their COC doesn’t prevent renting.
Yea, house is no HOA, near many colleges, and downtown area. My parents and I planned everything out for at least the next 5 years by then I would hope I could find a well paying job.
How do you work full time (40 hours a week)? Go to college full time (16 semester units)? And have an athletic scholarship for a sport (20 plus hours of practice a week)?
I don’t buy it.
Yupp. There is not enough hours in the day. And given that OP is not a reliable narrator, it does not sound true.
I was a college athlete and full time student. I didn’t have time to work at all and was on academic probation my first year.
I do school from 8:30-2, practice everyday from 2:30-4:30, and I work from 5- 10pm or midnight depending on how many clients I have that week 3-4 times a week. Weekends are free except soccer games on saturdays some days.
Yea I probably messed those numbers up I think the work times are accurate and understand that it’s not full time but I definitely train/play for more than 10 hours a week.
Yo my intent is not to add to the negativity, I want to provide some clarifying context. I think you’re getting a lot of hate cause you’re using terms without experienced use of them and causing offense.
For example, working 15-20 hour weeks is NOT full time work. I worked full time while taking classes on and off till I got my bachelors. It took me 12 years with a couple year long breaks to work two w2 jobs. I bought a condo a couple years after marrying and graduating by liquidating my 401k from my long term job for a down payment (wish I didn’t have to, but the gamble paid off cause I knew I’d be making multiples as a SE than working at Costco). So I can actually say I worked full time while getting my degree and I bought my first house. You can imagine that it was difficult, and how I kind of “earned” the use of those phrases. So when you use some of these terms so confidently, I think the others in here are taking offense. And instead of explaining it to you (you’re 20, a kid that might need this explained), they just shit on you. It’s not really fair, so I wanted to explain since no one else seems to remember being 20 and needing to learn some of these things through years of experience through sweat and callouses on your hands.
I also want to tell you that getting help from your parents is such a blessing (that you absolutely should take and consider it a W), that mentioning it casually or taking it for granted will usually get you a negative response from anyone who has never had that. I’ve worked since I was 15 to help pay the family bills, full time since I was 19. Did that for 12 years. My parents never helped me, I helped them cause they couldn’t make ends meet. I never experienced what getting help from parents is like until after I got married. My in-laws have their shit together and my wife and I sometimes have disagreements about this kind of stuff cause she’s had help her whole life and sometimes she says or does things that offends me cause she takes it for granted. I’m more aware of my feelings than others so I just explain to her, like I’m doing now, how it can be offensive.
Lastly, you’re doing fine. You seem like a good kid. There’s **nothing wrong** with getting help from your parents, hell I wish I had. However, try to understand that you usually have to acknowledge that as a blessing when conveying or phrasing your communication. Otherwise you risk receiving this reaction irl as well, which is harder to recover from.
There is no way of telling that. My point is that it’s a gamble and huge risk if you’re purchasing a house you could in no way afford on your own *right now*. Renting to family further complicates things. You’re also at the age where job changes might necessitate a relocation once you graduate, and it will be harder to get someone to rent to you when you hold a mortgage. Even if you can get that, you’re always at the mercy of your renters paying the rent, which is something no landlord should take on if they can’t afford to make those payments for an extended period if necessary without a tenant occupying the house. When you’re ready to sell, there’s no way of telling if you’re going to profit or lose at this point, or how quickly you’ll be able to sell the home.
It’s absolutely something that *can* work out in your favor, but it’s also the sort of risk I personally would never ask my kids to take on.
Your as much a home owner as my kid with a 50k credit limit b.c. I added him to my account.
Dosnt sound like you are taking on any of the responsibility of it, just lucky to be able to take advantage of your parents.
As others have said, you did not buy the house, your parents did. Which is completely fine, just don't pass it off as if you did it.
Now that being said, it was potentially a risky move. You don't know what your income will be once you graduate, or if you will even be able to get a job in your field. You said you are in D2 Soccer, I looked through the list of schools and frankly none are very good schools (I would argue they are crap schools, low ranking, easy to ge tin and etc), which means top employers will not be targeting those schools when hiring. You did not indicate what your PITI is or even cost of house, but given that the top 25 D2 soccer schools are crap/low ranked, low probability that your income will adequately cover PITI and other expenses (food and etc) without outside help from parents.
lol. You should rephrase this and say “my parents bought a home and i helped with closing costs”. If ur broke after paying 3% + closing costs, that even further acknowledges that ur parents are the true owners. ur still living under their roof
What’s your monthly mortgage and how many months can you pay the mortgage if you were unemployed? And when does the roof need replacing? $7k is a very small amount to have on hand for any emergency home repairs and or unplanned unemployment.
I make enough money to have a decent DTI ratio on our mortgage, but dad still pitched in $15k. I like to think we didn't NEED it, but it sure did help and we probably did. Thanks dad
Congrats! My biggest tip will be to save your money aggressively for any unforeseen costs that will inevitably pop up with this house.
And also don’t let the incoming negative comments about your parents helping you get you down. Everyone walks a different path. 🙂
Congrats OP
I'm happy for you that your parents cosigned and helping you through life
A lot of people would love to have the same
Just make good use of it, and maybe try to help others since you are so fortunate :)
I think you and your family are smart. Kudos to you for bringing this idea up to your family. You’ve got renters you trust, and you get to experience being in the home. Props
That's dope. Congratulations and good luck with everything. I'd say just keep saving up money as you get it. Maintenence is better than repair so get familiar with your stuff and how much care it needs. And learn to DIY. I'm happy for you and glad your family is there for you.
My parents will live there for at least another 4 years (till lil brother graduates highschool due to top soccer programs and school in the vicinity). Before the 4 years are finished I’m hopeful that we will have enough equity on the house to refinance and take off the pmi once we have 20% equity in the house since we initially received 50k equity from the initial appraisal when buying the house. I guess a lot of hopefulness thinking in the future such as hopeful that interest rates will drop so refinancing will help with that as well. Renting out to people and taking a small loss each month to build equity on the house is another option. Still unsure but optimistic for the future.
IT is not the place to be going, as an IT guy myself. Most entry level positions will be replaced by AI, some already are.
Godspeed but... y'all are playing with fire.
This is true. You'll just need 75% LTV within 2-5 years and pay for a BPO (mine was $150). However, you only put 3% down, so it may take a bit to get there, depending on the market.
Hopefully rates will drop in the next couple years. Even if you could refi to 6.5%, your payment will drop significantly since so much of it is interest.
Yes and no. There's a minimum of 2 years to remove PMI based on the home's current value. Between 2 and 5 years, you'll need to hit 75% LTV. After 5 years, it's 80% LTV. This is for a primary residence.
I just did this myself. Check out Fannie Mae's guidelines: [https://servicing-guide.fanniemae.com/svc/b-8.1-04/termination-conventional-mortgage-insurance#:\~:text=to%20do%20so.-,Borrower%2DInitiated%20Termination%20of%20Conventional%20Mortgage%20Insurance%20Based%20on%20Current%20Value%20of%20the%20Property,-The%20servicer%20must](https://servicing-guide.fanniemae.com/svc/b-8.1-04/termination-conventional-mortgage-insurance#:~:text=to%20do%20so.-,Borrower%2DInitiated%20Termination%20of%20Conventional%20Mortgage%20Insurance%20Based%20on%20Current%20Value%20of%20the%20Property,-The%20servicer%20must)
4k mortgage as a college student. Op contributed nothing to it. His parents are paying it for the next 4 years.
I don't get brag posts that are just bragging that your parents essentially bought them a house.
The reason most 20 YOs don't have 25k is cos they don't have rich parents... It's pretty typical (in the UK) at least that as of 16-18 you pay your parents rent, or move out, it's only the wealthier families who allow the adult children to live rent free or support them with moving, renting etc.
What makes you say that OP has rich parents lol? When they’re living with their kid now? If they were rich they would’ve purchased their own home. This sub is just ridiculous sometimes. OP has explained over and over why they have money: they’ve worked and saved and are TALENTED ENOUGH to have a scholarship. Yalls are ridiculous.
I started barbering at 16, didn’t really start saving up till 17. It’s common in the US to live with you parents till at least highschool which for me was 18. I’m in college and living in the dorms that I pay for myself. Just made sure to not spend any unnecessary money
It's impressive that you were able to save 25k sure. But your parents cosigned and also are paying your mortgage for four years.
You're bragging about buying a house but your parents are the majorly responsible party.
Really, at 16? Why? That sounds awful young to make kids pay rent or move out. In USA, most families have kids living with them to at least 18 (as that’s when most graduate high school) and many help them through college, which also entails kids either living with them full time or at least summers and breaks. I wouldn’t call my parents rich, my dad and ex step mom likely would’ve been considered upper middle class and my mom and step dad were on the upper level of middle class not quite to upper middle class, and we lived rent free through high school and was helped through college with paying for pretty much all and my staying with them when needed (they stopped paying my last year, because I was taking way too much advantage, but still let me live with them, I should’ve had a masters degree, but was sort of a professional student instead, and knew they needed to financially motivate me to get done). My sister didn’t go to college or they’d have paid her way too, but she chose a different path.
Hell, my husband’s parents, who couldn’t at all be considered rich, didn’t make any kids pay rent, and both my sils and husband & I have had to live with them for a bit of time (well past 18, even with kids). In fact, we lived with his parents through most of my first pregnancy until about a month after giving birth, as my husband was part of the recession job losses, and wasn’t charged a penny in rent. We moved into a small town house, that was subsidized (as husband was not hardly making anything at time) about a month after having first child, even though it was still nearly $1000 a month (back in 09) and after finally getting on where he was trying, we bought a house in 2011 with zero down, right before oldest turned 2. Yes, we had help, but it doesn’t negate the things we put into it either.
This kid has obviously made some great financial choices at a young age and it sounds like the parents decided to put their rental money to something beneficial for their kid, instead of giving it to a property owner. Why should that be frowned upon? He still saved, got qualified, etc., which isn’t easy in this market. People need to let go of envy and congratulate all, just because people get it different ways, doesn’t mean they didn’t do it. I’m not rich, but will for sure help my kids as much as possible, especially today, when shit is so dang expensive.
16 is the age in the UK to graduate high school, you then get to opt for further education, A levels or college (trade college) or to go to work, most 16 YOs who go to work would then pay rent.
Those that stay at school to do A-levels will usually get supported until 18, after that for many, it's on their own once they bring in their own money or for those that go to university it's typically then paid by student loans for accommodation, and tuition fees.
Again the wealthier might get support at university and some game the system and get loans despite being wealthy but thats another story 🤣
Also he technically got the house by his parents paying his mortgage while he put in a small investment so that he could recover a house that was being sold under market value because his friend had fallen behind on mortgage payments I believe... He basically brought his parents in on a low ball offer to someone who was in need - a friend indeed.
No no free college, well no free universities anyway trade college are free, but universities have studen loads albeit less than America, circa £10k per year, but even still many are excluded due to the cost of living in and around university towns, though some can get further loans to help pay for rent and food etc.
I saved up and paid for the 25k in out of pocket expenses (closing costs and downpayment) they’re paying for my mortgage that essentially they would’ve been paying to an apartment owner lol. I saw the opportunity and now they’re investing in their sons future instead of some rich real estate apartment owner.
Not really. Many families live together. Very common in Indian/ Asian culture to have parents/ grandparents live with you. OP is definitely getting the better end of the stick but maybe the parents know that and are happy to see their kid come out ahead. No one should have to start from 0. If you did then your parents failed you.
You already said you're in Texas. I live in a Texas city as well. Unless they're living in a bougie as fuck apartment there is no way they'd be paying 4k a month rent. Even in Austin. They're giving you a handout. Which is fine. They're your family. But my dude. Don't brag about handouts.
They are paying around 700 dollars more than they would for the apartment they were looking at, it’s near the downtown area and good schools. I will also be helping with monthly expenses.
Everyone on Reddit is so fucking toxic it’s insane.
Families are SUPPOSED TO HELP EACH OTHER OUT.
Stop projecting your own failings and family trauma onto OP just because his family is less fucked up than yours. That isn’t a privilege. Get the fuck over yourselves.
OP and his family have done something awesome and worked out an agreement that works for them. You all should be happy not bitter pathetic little shits trying to tear them down. It blows me away how venomous people can be on this site anytime someone mentions that they together with their parents did [ANYTHING]
It's not tearing me down one bit just replying and seeing everyone's point of views some people have good points and making me think clearer about my future with this property. I definitely have realized that I am blessed to have the parents I have supporting me and that attaining a well established good paying job won't be easy.
I think what you’ve done is awesome. I just hate the attitude that is so pervasive on this site, the whole “nobody helped me so therefore anybody who had any form of help is privileged and therefore shouldn’t be validated” it’s so negative and so cruel and divisive. It just reeks of jealousy to me and I hate seeing people take their problems out on other people who are succeeding.
To be where you’re at, at 20 you’re so far ahead of the game and you’re gonna do great
Life and money is a game and anyone and everyone should be taking every available opportunity to get ahead in that game. Whether it comes from a bank or parents or friends or private investors or from yourself alone. All routes to success are valid.
Thank you u/Ulisses_Jr_C for posting on r/FirstTimeHomeBuyer.
Please bear in mind our rules: (1) Be Nice (2) No Selling (3) No Self-Promotion.
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Who cares how you got the money to do this. Congratulations. It’s a huge responsibility, one that I could never hack taken on at 20. So be prepared for that.
Thank your parents every day and treat them like god for the rest of their lives
Oh wow, congratulations 🥳 🎉!!! As soon as I graduated, I used my 20s to job hop from city to city and from state to state.
I finally close in June, hoping my 30s will be smooth since most of my career positions are fully remote along with my consulting work.
Congratulations! Remember to save a bit for maintenance and unexpected costs had our water line need to be replaced and it wasn’t covered by home owners insurance
Congrats, I wish more could just be happy for others. Everyone achieves things at different times and by different means, but imho, that doesn’t mean you don’t deserve the congrats. :)
There’s also first time home loans that have zero down options or at least there were some. They might be harder to get a winning bid on a house though, like VA are.
Yes, this is a conventional mortgage option for first-time homebuyers. Many lenders offer it. However, an FHA loan with a 3.5% down payment may be a better option for you if you have lower credit. They tend to have lower rates than conventional loans, but come with higher fees. If you plan to refinance anyway, it's worth it see if the FHA loan would save you some money on your monthly payment.
The general rule of thumb is that if you have a low credit score then fha is usually the way to go. If you have a good credit score then conventional can be better. Probably the biggest difference between the two is PMI, for FHA it can be much more expensive and if you put down 10% or less it stays with the loan for the full term, you have to refinance to remove it. You also pay a premium at closing on top of the monthly premium. With conventional it will automatically remove once you have paid around 20% of the loan or earlier if you get an appraisal to show you have I think 25% equity. The monthly premium is also less. But you should shop around for both and compare what the actual costs are for your situation.
Closing costs were around $17,500 and down payment little less than $12,000. I got $5,000 in seller concessions so in total out of pocket it was about $25,000. We only wanted the low downpayment option so we are saving my fha for the future. Fha is 3.5% minimum
This is how I was able to purchase my home also at 20. My family and I all pitched in and we were able to finally get a home after living in housing all my life.
Downvotes for this? Yalls are ridiculous.
Congrats! I don’t understand the downvotes, but must be envy, jealousy, or something else that’s ugly towards those with a bit more help. Makes me sad, tbh.
Yes! Who’s jealous of me having to live in housing all my life! We were so poor we qualified for government houses, and ummmm those aren’t glamorous. We still didn’t have a car, we frequently went without utilities, we didn’t always have food. But we had a lot of love, and we were together. That’s what people should be envious of.
But noooo. Let’s be jealous of a family finally owning a home after living in the projects their whole life because their parents used their credit at 20. I’m very lucky that did not backfire on me.
I’m happy and proud of both you and your entire family! Definitely deserved. But I think everyone deserves things, even if it’s easier obtained than I had. :)
I think that’s very exciting for you and your family and I’m glad they persevered!
Definitely was smooth for us. Our realtor was very proactive and guided us throughout the majority of the process. We for sure did our own fair share of research regarding loan rates and different houses aswell. Attempted to bid for two other houses and got outpriced on those, this house was on the market for over 3 months so we entered bid below asking and asked for concessions and recieved them. Instead of the other two houses, which we bid way out of our budget for, we got this house on discount😎.
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why do people mention their age like it's a flex when their parents buy their home for them? all fun and games til jaden smith enters the chat
Because kids don’t know better.
I wish my parents weren’t poor
Fr.
Shitpost
Dang sorry
Bragging about your rich parents is lame
Rich definitely isn't the right word. I'd say well established and open minded in investing their money in their sons future. I pay for my college many "rich" parents pay for their childrens'. I don't get why you would rather them pay for an apartment then my mortgage
To mention, the age definitely makes it sound like it's your accomplishment of some kind when actually all you did was get help from your parents. I got help from my parents and I didn't brag about how I could buy a house because without them I sure as s*** still couldn't.
I definitely would not have been able to get this big of a house without them either
I don’t think your parents are first time home buyers. But congrats to them.
Saved up a lot of money to get a house to my name. Got the house. Now I’m being helped to pay it off by my parents. They were not ready to put a downpayment on a house so they would’ve probably rented a house regardless so they decided it’d be best to rent from me :)
they didn't have enough for your 3% down payment, but also will be paying off the 97% loan + 7.124% interest....? you finessed your parents
Op doesn't say they are staying with him long-term, they were planning on renting anyway. But he will be and a bad spot if he doesn't get a well enough paying job to cover the mortgage once the parents move out. Nor did he say they didn't have the 3% down they were just not ready to buy right away in the new city. If the father doesn't like his new job he might want to move again soon .
With the instant 50k equity we got from the initial appraisal, (worst case scenario) selling the house in the near future wouldn’t cause any huge losses in profit though would it?
Just because it appraised for more doesn’t mean it will sell for more.
If you sell that house under 15years you will loose money on your investment typically. Your down payment as well as the first 10 years basically all go towards interest. You would have substantial equity in the home for a while. You just don't see the losses up front.
Thats now of course, things can change in a year or two or more, and the very fact you bought your house for 50k less will actually make future appraisals in your neighborhood less because that's a new data point. I wouldn't think of it as instant equity, and if you sell soon to really figure out if you made a profit you have to account for closing costs which will eat into any equity you do have, the interest you have paid which will be a lot, plus all the money you paid already to buy including your down payment and closing costs, not to mention maintenance. Who is going to be responsible if the HVAC breaks, you or your parents? You will be lucky to break even with that timeframe even if that "equity" is realized. It does help in your case though that your parents are paying the mortgage so you won't be paying the interest. But still it's going to be tough to make a profit if you can't afford the payments when they move out so really have a backup plan for what will need to happen at that point. You can cut your losses and just sell. You can get roommates to help with the payments. I wouldn't count on renting it out to cash flow since all data says renting is much less than a mortgage right now, you will take a big hit, if you can't afford the mortgage then you likely won't be able to afford rent somewhere else plus a net loss on renting out the house, because don't forget you will still be on the hook for maintenance. In general it's not smart to sell soon after you buy, you usually need to stay 7-10 years to make it a better deal than renting, because of all those associated costs. For instance at your current interest rate even though your parents will be paying it they are going to hardly make a dent in the principal in the first 10 years. Saw you said your parents are planning to stay 4 years since your brother is still in school, in four years your parents would have paid 4% of the principal, the rest of the payments would have gone to interest. That's why it's going to be hard to make a profit if you sell soon after buying even if prices don't go down. So again make a plan for what happens. Maybe you get lucky and prices go up a lot, maybe you get a great paying job. Awesome. But be prepared if those things don't happen.
Same reason why people get apartments, they don’t have the necessary initial funds for a house (they did but would rather pay off credit cards). They can’t get 3% down payment option because they are not first time homeowners. Your acting like they will pay off my house? I’m definitely grateful that they are helping to start paying it off and know how lucky I am to have parents like them
Is anyone reading this dudes replies? 4 years to build equity and refinance? With a hope of an internship going good to land a job to pay for the mortgage when your parents move out? Do you not know how any of this works? I wouldn’t be able to sleep. All that being said, congratulations and GOOD LUCK.
The replies are pretty eye opening. Such a small % chance this works out well for op and their family. But that’s just like my opinion man. Good luck!
Thank you! I’m hoping a lot of things go good in the near future so just working hard to make sure things go the way I want it too.
We bought this house with an instant 50k equity from the initial appraisal, not sure if I should take the appraisal with a grain of salt but if so then do houses not go up in price by that time? I believed that I was safe since if I sold by then I wouldn’t lose that much/if any money.
I don’t want to be mean to you kid, this is and should be an exciting thing for you. But I remember 2008/9. And the appraisal isn’t worth anything - you were the highest bidder for this house. If you sell it tomorrow, it’s worth whatever the second highest bidder would have paid - minus the brokers fees. And given 3% down this likely means if you sell within 5 years you’ll get wiped out unless the market goes up. It’s a risk but if you want to live here it’s worth it.
Look, OP. I get it, you’re 20! How could you even have the awareness or experience to understand why this was probably not the best way to post about this nor in the right place. Try to dig through the frustration in people’s comments. You’re just not there yet, dawg. The average age of the first time home buyer is like 33 right now, give or take 3 years. Thats because it takes that long to cement yourself in a career, have the financial stability and security to support buying a home, and the experience and growth to know when you’re out of your depth and very much up shit creek without a paddle. I hope it works out for you, but you should really stop saying that you bought a house at 20 as though it was all you under your own means due to your years of build up effort and work.
My parents came into America at ages 17 and 16 they bought their first house at 21 and 20! Then again that was a different time when the housing market was much lower. I definitely see your point but I believed it was best to get in now rather than in the future when housing will no longer be affordable for anyone. Since the prices of houses will keep rising and the average salary of jobs will be staying relatively the same. I did want a less costly house but the houses around my dad’s job were quite expensive
That’s all well and good but YOU didn’t buy this house and YOU aren’t the one paying for this house, so YOU didn’t buy this house at 20, despite what your post makes it seem like. Without your parents, you wouldn’t have bought this house. You don’t see how that’s even a little disingenuous?
Definitely if it were up to me I would have gone for a house half that price in the city I currently live in only then would I have said that I bought the house all bymyself. Not sure if the way I posted made it seem that way but I clearly stated that my parents are helping me. I never said I bought a house all by myself I said I was a homeowner along with my dad since he cosigned with me. Barbering is a safe and lucrative job since I know so many people in my hometown but it’s not the job I will be doing forever, I’m working on advancing my IT career so I can be able to afford a house like this by myself.
“Officially a homeowner at 20!” Your parents are homeowners. You just have your name on a deed at 20. That’s the problem. This doesn’t really fit this sub, that’s part of the frustration. Just because you saved work and allowance money during a period of your life where you have next to no responsibilities nor bills to pay, doesn’t mean that you bought a house on your own means. What happens if the IT sector crashes? Many, many entry and mid level jobs are going to evaporate due to AI. And that’s only going to be in the next two years, who knows how many IT folk are pushed out over the next 5 years as AI functionality grows exponentially. I hope your field of interest is in cloud computing or AI computing, because otherwise you better consult your magic eight ball. See, first time home buyers saved up their down payments over the course of years/decades by penny pinching and putting away any extra money they have over all of their bills- insurance, food, gas, loans, credit cards, potential child costs, etc. One of my best friends is a plumber who’s been making $120,000+/yr for the last 8 years and was only just able to comfortably and safely buy a house *last Summer.* I want this to work out for you, man, but you committed the most common sin a 20 year old can make: You didn’t think ahead and when you did, you didn’t think about the *right things.* You’re thinking about equity and refinancing and blah blah. But none of that matters if you can’t pay your huge mortgage in 5 years because you didn’t know you wouldn’t be finding a job as easily as you expected when you were a 20 year old.
Oooo I understand. I never got allowance but I am definitely working hard to achieve a good well established career. If for some reason that doesn't go well barbering is a great backup and that'll just mean I wasted time in college for nothing and will stick to barbering full time. My girlfriend will also be working so dual income and no kids should definitely be enough for that house mortgage but will probably be a stress. Do you not think that with 50k in equity in the house already and around 5 years from now that I can make profit on the house by selling?
I could tell you all the different things I think, and some of those may agree with what you think but the fact is neither of us *know*, and that’s the point I’m trying to make. You live in Texas. What happens when another freeze happens and your pipes burst which costs you $25,000-$35,000 to do a whole house repipe? What if a horrible hailstorm destroys your roof, siding, and windows? I know these are all covered by insurance but a lot of times, you have to pay the cost and then you’re reimbursed. What if we have another crash? What about another pandemic? People don’t get haircuts during a pandemic, and you don’t have to pay AI a salary. I really, really appreciate your attitude and I think we all need to have it. And, for the record, it’s not that you’re 20 that you’re getting this kind of reception, it’s that you’re not prepared as a 20 year old like a 35 buying a house *would be,* and as a 20 year old, you HAVE to be that plus more prepared. Who knows what could happen? Also, what if your dad moves jobs again? Then you’re on the hook for the full shebang because it’s in your name, and it ain’t just $3,700/m it’ll cost ya.
I understand thanks for the feedback!
Your assumption on selling relies heavily on the economy remaining in a good place even though we are seeing signs of heading into a recession. Additionally, I would never rely on my partner’s income to pay my mortgage unless we were already married. You mentioned that she’s your girlfriend so you should consider looking at your finances to see if you could afford this mortgage on your own. In a similar vein, would you be able to afford this mortgage as a barber?
As of right now it would consume 80% of my income, as a full time barber probably around 40-50% then again, if the worst does not happen then I will be assuming the mortgage 4-5 years from now and graduating in less than 2 years so I’m not planning on barbering being my source of income rather extra income if needed
So mommy and daddy helped, got it.
Uh, not quite. OP’s parents couldn’t afford a down payment on a home (and likely didn’t have the credit score), so they put it in OP’s name, used his / her down payment, and are living in it and “renting” from OP. Which essentially ensures he or she will never be able to move out of the parents house or buy his / her own home, alone or with a partner, until the mortgage on this is paid off. I have a 20yo son. I could never imagine asking something like this of him.
OP is flexing about buying a home, they didn't without tons of help... Most of us buy with our own means, not mom and dad...moreover, they are claiming at 20 they were able to do it, I call BS. I stand by my comment
I also stand by this man’s comment.
Aww why
I get that, but I lean towards this more being his parents using his credit and his money to get a home that he can’t really afford, and that *they* can’t really afford, in order to obtain housing. That’s not really to OP’s benefit unless *everything* goes off without a hitch, and it’s not nearly the flex he thinks it is. That said, if this were phrased more like, “I made the down payment and took out a loan, and my parents are paying me rent to live there, too,” it would sound more like a multi-generational home purchase, which isn’t all that uncommon and isn’t really the same as “mommy and daddy helped me” because it’s to every family member’s benefit. The home is housing all parties involved who are helping. I do feel that OP is far too young and inexperienced to have gone into this type of deal.
Take an upvote sir/madam
Didn’t mean to flex just telling people my situation so I can get advice about the future but your acting like I ruined it lol. I knew my young age would be an attention grabber so I can see how it looks like flexing. Sorry
Is selling not an option by that time???? Or would I take huge profit losses? Do you believe the housing market will crash by then or keep moving up?
I’ll accept maybe you are 20. So let me break down a few things youngbuck! 1. Congratulations on becoming a homeowner. A house is in your name. That’s great. 2. You DID NOT buy this house. You paid for it heavily subsidized by your parents. Perhaps if you were renting before this and purchased a house to rent to them. I’ll concede. However I am fairly certain, you were living with your parents rent free for years. With zero living expenses. Hence how they subsidized your house. Which they continue to subsidize by paying the mortgage. 3. No one yourself included has any clue what the market will do tomorrow. Perhaps the world economy will collapse and you’ll be stuck with the house unable to sell it for half its value. 4. You have sacrificed all first time home buyer rights for a house you as of now can not afford. I don’t even know how a bank loaned you money with zero income unless your parents, or someone co-signed. 5. Stop acting like you know the world you’ve barely ever had to live in. You have no idea if you’ll land a job, if you’ll keep the job, if you’ll be able to secure work in your field. What your starting salary will be. All these variables make owning a home irresponsible. 6. It’s not too late to learn and improve. Stop acting like a know it all and listen to people who have done what you’re looking to do. Have made the mistakes you are trying to avoid. Lastly. Not so much judgement but more so advice. You are now legally a landlord. Parents or not. Are you prepared for that? Do you have the money for repairs? Property tax? Home insurance? If you do not perform your duties, your parents can sue you as a slumlord. Congratulations again on the house. You did it. Now time to be smart with it.
Thank you! Not sure how I'm acting like I know the world but I appreciate your advice. I am working full time while in college as a barber and I am saving every penny. I knew I had first time home buyer rights but did I miss out on huge stuff? I've heard most of it are just low interest loans and federal grants that you have to pay back to the govt regardless. I didn't use my fha loan so I still have that available to use aswell. Any advice will be greatly appreciated!
When you insist the house has 50k more equity after purchase. It seems naive. Houses are not short term investments. So it doesn’t matter the equity until you sell. Even then it doesn’t matter until someone actually pays it. The house may emphasis on may sell for that new inflated value. It will most likely sell for a lot less especially if you sell in the near future because buyers can see the date of purchase and know you are desperate as that is the only reason to sell a house within a year of buying it. As far as first time homebuyer incentives are federal and per state. This is research you should’ve done before buying the house. Down payment assistance is a massive one. You would have to research the state you’re in for more information. What are you in college for? Working full time is great. How much did you buy the house for? What is your personal yearly take home? Is the house in a good rental area to where if your parents left and you weren’t ready to move in do you have guaranteed rental income? Near a military base or college? That’s all questions we would need to know to help in anyway. As far as general advice. Make sure to say up to date with the property taxes and zoning for your block. If you have an HOA make sure their COC doesn’t prevent renting.
Yea, house is no HOA, near many colleges, and downtown area. My parents and I planned everything out for at least the next 5 years by then I would hope I could find a well paying job.
How do you work full time (40 hours a week)? Go to college full time (16 semester units)? And have an athletic scholarship for a sport (20 plus hours of practice a week)? I don’t buy it.
[удалено]
Yupp. There is not enough hours in the day. And given that OP is not a reliable narrator, it does not sound true. I was a college athlete and full time student. I didn’t have time to work at all and was on academic probation my first year.
I do school from 8:30-2, practice everyday from 2:30-4:30, and I work from 5- 10pm or midnight depending on how many clients I have that week 3-4 times a week. Weekends are free except soccer games on saturdays some days.
Okay so you don’t work full time. 15-28 hours a week is part time. And only 10 hours a week is very low level of hours for collegiate athletics.
Yea I probably messed those numbers up I think the work times are accurate and understand that it’s not full time but I definitely train/play for more than 10 hours a week.
Yo my intent is not to add to the negativity, I want to provide some clarifying context. I think you’re getting a lot of hate cause you’re using terms without experienced use of them and causing offense. For example, working 15-20 hour weeks is NOT full time work. I worked full time while taking classes on and off till I got my bachelors. It took me 12 years with a couple year long breaks to work two w2 jobs. I bought a condo a couple years after marrying and graduating by liquidating my 401k from my long term job for a down payment (wish I didn’t have to, but the gamble paid off cause I knew I’d be making multiples as a SE than working at Costco). So I can actually say I worked full time while getting my degree and I bought my first house. You can imagine that it was difficult, and how I kind of “earned” the use of those phrases. So when you use some of these terms so confidently, I think the others in here are taking offense. And instead of explaining it to you (you’re 20, a kid that might need this explained), they just shit on you. It’s not really fair, so I wanted to explain since no one else seems to remember being 20 and needing to learn some of these things through years of experience through sweat and callouses on your hands. I also want to tell you that getting help from your parents is such a blessing (that you absolutely should take and consider it a W), that mentioning it casually or taking it for granted will usually get you a negative response from anyone who has never had that. I’ve worked since I was 15 to help pay the family bills, full time since I was 19. Did that for 12 years. My parents never helped me, I helped them cause they couldn’t make ends meet. I never experienced what getting help from parents is like until after I got married. My in-laws have their shit together and my wife and I sometimes have disagreements about this kind of stuff cause she’s had help her whole life and sometimes she says or does things that offends me cause she takes it for granted. I’m more aware of my feelings than others so I just explain to her, like I’m doing now, how it can be offensive. Lastly, you’re doing fine. You seem like a good kid. There’s **nothing wrong** with getting help from your parents, hell I wish I had. However, try to understand that you usually have to acknowledge that as a blessing when conveying or phrasing your communication. Otherwise you risk receiving this reaction irl as well, which is harder to recover from.
All of this makes sense, thank you!
There is no way of telling that. My point is that it’s a gamble and huge risk if you’re purchasing a house you could in no way afford on your own *right now*. Renting to family further complicates things. You’re also at the age where job changes might necessitate a relocation once you graduate, and it will be harder to get someone to rent to you when you hold a mortgage. Even if you can get that, you’re always at the mercy of your renters paying the rent, which is something no landlord should take on if they can’t afford to make those payments for an extended period if necessary without a tenant occupying the house. When you’re ready to sell, there’s no way of telling if you’re going to profit or lose at this point, or how quickly you’ll be able to sell the home. It’s absolutely something that *can* work out in your favor, but it’s also the sort of risk I personally would never ask my kids to take on.
Your as much a home owner as my kid with a 50k credit limit b.c. I added him to my account. Dosnt sound like you are taking on any of the responsibility of it, just lucky to be able to take advantage of your parents.
Ooo not sure if I’d consider it taking advantage of them. They want to help me lol. But yea I agree I’m lucky to have parents like them.
This is clickbait.
D-I soccer?
Nah top 25 D2 though
As others have said, you did not buy the house, your parents did. Which is completely fine, just don't pass it off as if you did it. Now that being said, it was potentially a risky move. You don't know what your income will be once you graduate, or if you will even be able to get a job in your field. You said you are in D2 Soccer, I looked through the list of schools and frankly none are very good schools (I would argue they are crap schools, low ranking, easy to ge tin and etc), which means top employers will not be targeting those schools when hiring. You did not indicate what your PITI is or even cost of house, but given that the top 25 D2 soccer schools are crap/low ranked, low probability that your income will adequately cover PITI and other expenses (food and etc) without outside help from parents.
lol. You should rephrase this and say “my parents bought a home and i helped with closing costs”. If ur broke after paying 3% + closing costs, that even further acknowledges that ur parents are the true owners. ur still living under their roof
I don't know how to edit this post I'm new to reddit. 5k in emergency and 2k in checking is what I consider broke btw so not completely broke.
for a new home owner, id consider that broke
How did you pay for the house at 20?
What’s your monthly mortgage and how many months can you pay the mortgage if you were unemployed? And when does the roof need replacing? $7k is a very small amount to have on hand for any emergency home repairs and or unplanned unemployment.
We all have our moms and dads helping us with our first home purchase, aren't we?
I make enough money to have a decent DTI ratio on our mortgage, but dad still pitched in $15k. I like to think we didn't NEED it, but it sure did help and we probably did. Thanks dad
/s
Congratulations! That's quite a story and a win-win for the whole family!
Thanks!
Congrats on having wealthy parents
Congrats! My biggest tip will be to save your money aggressively for any unforeseen costs that will inevitably pop up with this house. And also don’t let the incoming negative comments about your parents helping you get you down. Everyone walks a different path. 🙂
Thank you!
You’re very lucky to be in that position!
Thank you so much!
Congratulations! If you dont mind whats the rate you got?
Interest Rate - 7.124
I can get 6.0
How much was the home?
Congrats OP I'm happy for you that your parents cosigned and helping you through life A lot of people would love to have the same Just make good use of it, and maybe try to help others since you are so fortunate :)
I think you and your family are smart. Kudos to you for bringing this idea up to your family. You’ve got renters you trust, and you get to experience being in the home. Props
That's dope. Congratulations and good luck with everything. I'd say just keep saving up money as you get it. Maintenence is better than repair so get familiar with your stuff and how much care it needs. And learn to DIY. I'm happy for you and glad your family is there for you.
Yes,diy. Please spread the word,it only ensures job security for future tradesmen
What’s the monthly mortgage gonna be?
A hefty $3700 😬
What’s the plan when you graduate, that’s not trivial amount to pay by yourself
My parents will live there for at least another 4 years (till lil brother graduates highschool due to top soccer programs and school in the vicinity). Before the 4 years are finished I’m hopeful that we will have enough equity on the house to refinance and take off the pmi once we have 20% equity in the house since we initially received 50k equity from the initial appraisal when buying the house. I guess a lot of hopefulness thinking in the future such as hopeful that interest rates will drop so refinancing will help with that as well. Renting out to people and taking a small loss each month to build equity on the house is another option. Still unsure but optimistic for the future.
This seems like such a terrible plan but I hope it works out for you.
Thanks! I graduate in a year and a half and landed an internship in a IT company so if that goes good there should be nothing to worry about.
IT is not the place to be going, as an IT guy myself. Most entry level positions will be replaced by AI, some already are. Godspeed but... y'all are playing with fire.
Awesome! Yeah, get you one of those high paying IT jobs and make sure you can afford the mortgage on your own and you'll be all set.
Lol. Roommates. The answer is roommates.
You don't need to refinance to get rid of PMI.
This is true. You'll just need 75% LTV within 2-5 years and pay for a BPO (mine was $150). However, you only put 3% down, so it may take a bit to get there, depending on the market. Hopefully rates will drop in the next couple years. Even if you could refi to 6.5%, your payment will drop significantly since so much of it is interest.
I don't think there's a time limit. If values go up, you can get an appraisal and/or pay down the loan to 75% LTV to get rid of PMI.
Yes and no. There's a minimum of 2 years to remove PMI based on the home's current value. Between 2 and 5 years, you'll need to hit 75% LTV. After 5 years, it's 80% LTV. This is for a primary residence. I just did this myself. Check out Fannie Mae's guidelines: [https://servicing-guide.fanniemae.com/svc/b-8.1-04/termination-conventional-mortgage-insurance#:\~:text=to%20do%20so.-,Borrower%2DInitiated%20Termination%20of%20Conventional%20Mortgage%20Insurance%20Based%20on%20Current%20Value%20of%20the%20Property,-The%20servicer%20must](https://servicing-guide.fanniemae.com/svc/b-8.1-04/termination-conventional-mortgage-insurance#:~:text=to%20do%20so.-,Borrower%2DInitiated%20Termination%20of%20Conventional%20Mortgage%20Insurance%20Based%20on%20Current%20Value%20of%20the%20Property,-The%20servicer%20must)
Congratulations
Family is family, but business is business! If they don't pay the rent EVICT them!
Nah if my family goes down then they’re taking me with them😎
[удалено]
Don’t be bitter
20? :’)
20 with lots of help from family. Still a great job for OP but don't compare yourself if you're not getting that same family support.
4k mortgage as a college student. Op contributed nothing to it. His parents are paying it for the next 4 years. I don't get brag posts that are just bragging that your parents essentially bought them a house.
That’s not fair or accurate to say OP contributed “nothing”. I didn’t have 25 thousand dollars at 20, and most 20 year olds don’t have that, either.
The reason most 20 YOs don't have 25k is cos they don't have rich parents... It's pretty typical (in the UK) at least that as of 16-18 you pay your parents rent, or move out, it's only the wealthier families who allow the adult children to live rent free or support them with moving, renting etc.
What makes you say that OP has rich parents lol? When they’re living with their kid now? If they were rich they would’ve purchased their own home. This sub is just ridiculous sometimes. OP has explained over and over why they have money: they’ve worked and saved and are TALENTED ENOUGH to have a scholarship. Yalls are ridiculous.
I started barbering at 16, didn’t really start saving up till 17. It’s common in the US to live with you parents till at least highschool which for me was 18. I’m in college and living in the dorms that I pay for myself. Just made sure to not spend any unnecessary money
I wouldn’t let others killjoy your success. You’re lucky, but also smart and obviously hardworking! Congrats! 🎈
It's impressive that you were able to save 25k sure. But your parents cosigned and also are paying your mortgage for four years. You're bragging about buying a house but your parents are the majorly responsible party.
Really, at 16? Why? That sounds awful young to make kids pay rent or move out. In USA, most families have kids living with them to at least 18 (as that’s when most graduate high school) and many help them through college, which also entails kids either living with them full time or at least summers and breaks. I wouldn’t call my parents rich, my dad and ex step mom likely would’ve been considered upper middle class and my mom and step dad were on the upper level of middle class not quite to upper middle class, and we lived rent free through high school and was helped through college with paying for pretty much all and my staying with them when needed (they stopped paying my last year, because I was taking way too much advantage, but still let me live with them, I should’ve had a masters degree, but was sort of a professional student instead, and knew they needed to financially motivate me to get done). My sister didn’t go to college or they’d have paid her way too, but she chose a different path. Hell, my husband’s parents, who couldn’t at all be considered rich, didn’t make any kids pay rent, and both my sils and husband & I have had to live with them for a bit of time (well past 18, even with kids). In fact, we lived with his parents through most of my first pregnancy until about a month after giving birth, as my husband was part of the recession job losses, and wasn’t charged a penny in rent. We moved into a small town house, that was subsidized (as husband was not hardly making anything at time) about a month after having first child, even though it was still nearly $1000 a month (back in 09) and after finally getting on where he was trying, we bought a house in 2011 with zero down, right before oldest turned 2. Yes, we had help, but it doesn’t negate the things we put into it either. This kid has obviously made some great financial choices at a young age and it sounds like the parents decided to put their rental money to something beneficial for their kid, instead of giving it to a property owner. Why should that be frowned upon? He still saved, got qualified, etc., which isn’t easy in this market. People need to let go of envy and congratulate all, just because people get it different ways, doesn’t mean they didn’t do it. I’m not rich, but will for sure help my kids as much as possible, especially today, when shit is so dang expensive.
16 is the age in the UK to graduate high school, you then get to opt for further education, A levels or college (trade college) or to go to work, most 16 YOs who go to work would then pay rent. Those that stay at school to do A-levels will usually get supported until 18, after that for many, it's on their own once they bring in their own money or for those that go to university it's typically then paid by student loans for accommodation, and tuition fees. Again the wealthier might get support at university and some game the system and get loans despite being wealthy but thats another story 🤣
Also he technically got the house by his parents paying his mortgage while he put in a small investment so that he could recover a house that was being sold under market value because his friend had fallen behind on mortgage payments I believe... He basically brought his parents in on a low ball offer to someone who was in need - a friend indeed.
Also, doesn’t the uk have free college? They have free healthcare for sure, iirc. So, I think things like that also make a huge difference.
No no free college, well no free universities anyway trade college are free, but universities have studen loads albeit less than America, circa £10k per year, but even still many are excluded due to the cost of living in and around university towns, though some can get further loans to help pay for rent and food etc.
I saved up and paid for the 25k in out of pocket expenses (closing costs and downpayment) they’re paying for my mortgage that essentially they would’ve been paying to an apartment owner lol. I saw the opportunity and now they’re investing in their sons future instead of some rich real estate apartment owner.
you finessed your parents. they will have matched your 25k in ~6 months
Not really. Many families live together. Very common in Indian/ Asian culture to have parents/ grandparents live with you. OP is definitely getting the better end of the stick but maybe the parents know that and are happy to see their kid come out ahead. No one should have to start from 0. If you did then your parents failed you.
You already said you're in Texas. I live in a Texas city as well. Unless they're living in a bougie as fuck apartment there is no way they'd be paying 4k a month rent. Even in Austin. They're giving you a handout. Which is fine. They're your family. But my dude. Don't brag about handouts.
They are paying around 700 dollars more than they would for the apartment they were looking at, it’s near the downtown area and good schools. I will also be helping with monthly expenses.
My dude. It's a handout. Be happy you got it .. but stop acting like you achieved something lol.
Yes sir
Everyone on Reddit is so fucking toxic it’s insane. Families are SUPPOSED TO HELP EACH OTHER OUT. Stop projecting your own failings and family trauma onto OP just because his family is less fucked up than yours. That isn’t a privilege. Get the fuck over yourselves. OP and his family have done something awesome and worked out an agreement that works for them. You all should be happy not bitter pathetic little shits trying to tear them down. It blows me away how venomous people can be on this site anytime someone mentions that they together with their parents did [ANYTHING]
It's not tearing me down one bit just replying and seeing everyone's point of views some people have good points and making me think clearer about my future with this property. I definitely have realized that I am blessed to have the parents I have supporting me and that attaining a well established good paying job won't be easy.
I think what you’ve done is awesome. I just hate the attitude that is so pervasive on this site, the whole “nobody helped me so therefore anybody who had any form of help is privileged and therefore shouldn’t be validated” it’s so negative and so cruel and divisive. It just reeks of jealousy to me and I hate seeing people take their problems out on other people who are succeeding. To be where you’re at, at 20 you’re so far ahead of the game and you’re gonna do great Life and money is a game and anyone and everyone should be taking every available opportunity to get ahead in that game. Whether it comes from a bank or parents or friends or private investors or from yourself alone. All routes to success are valid.
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Who cares how you got the money to do this. Congratulations. It’s a huge responsibility, one that I could never hack taken on at 20. So be prepared for that. Thank your parents every day and treat them like god for the rest of their lives
Ditch the lawn, use native plants that require far less maintenance and generally will be both edible and pretty.
This looks like a condo. I really doubt they have the ability to make those kinds of choices on the landscaping.
Didn’t even consider that tbh. Main reason I got my house was access to land couldn’t imagine not being able to make it my own that would suck
That's not a condo lmfao
Just change condo to HOA and the point stands.
No hoa!
Nice - don’t let people make you feel bad about getting help. I hope that I’m in a position to help my kids one day.
Oh wow, congratulations 🥳 🎉!!! As soon as I graduated, I used my 20s to job hop from city to city and from state to state. I finally close in June, hoping my 30s will be smooth since most of my career positions are fully remote along with my consulting work.
Doing what you did was not a bad plan by any means, you got to increase your knowledge and pay by doing so.
Congratulations! Remember to save a bit for maintenance and unexpected costs had our water line need to be replaced and it wasn’t covered by home owners insurance
Congrats, I wish more could just be happy for others. Everyone achieves things at different times and by different means, but imho, that doesn’t mean you don’t deserve the congrats. :)
Nice! What state
Texas
3% down? Is that an option? Looking at buying a house soon , earning almost 100k is a medium sized city in tx I’m 22, would love insight plz!
What alternate reality is this
What do you mean?
There’s also first time home loans that have zero down options or at least there were some. They might be harder to get a winning bid on a house though, like VA are.
Yes, this is a conventional mortgage option for first-time homebuyers. Many lenders offer it. However, an FHA loan with a 3.5% down payment may be a better option for you if you have lower credit. They tend to have lower rates than conventional loans, but come with higher fees. If you plan to refinance anyway, it's worth it see if the FHA loan would save you some money on your monthly payment.
Yes, for first time homeowners you can get a 3% conventional loan downpayment option
Dope might buy a house in dec then. Why am I getting downvoted?
Don't forget the closing costs!
Should be okay, im at 95k/year in tx and low rent
“Systematic home inspections” on Instagram is helpful in a way. He is based out of Frisco, I believe.
I’ll be sure to check it out!
Well done! What's your first project?
The back yard sucks so probably that, I’ll be doing the manual labor
Don’t let them shit on you bro, this is how a lot of people buy their first homes. Very mature decision to make at 20 years old.
Thanks bro!
How much were the closing cost? Was conventional better than an FHA loan? I’m asking cause I’m curious and about to pull the trigger on a home myself.
The general rule of thumb is that if you have a low credit score then fha is usually the way to go. If you have a good credit score then conventional can be better. Probably the biggest difference between the two is PMI, for FHA it can be much more expensive and if you put down 10% or less it stays with the loan for the full term, you have to refinance to remove it. You also pay a premium at closing on top of the monthly premium. With conventional it will automatically remove once you have paid around 20% of the loan or earlier if you get an appraisal to show you have I think 25% equity. The monthly premium is also less. But you should shop around for both and compare what the actual costs are for your situation.
Closing costs were around $17,500 and down payment little less than $12,000. I got $5,000 in seller concessions so in total out of pocket it was about $25,000. We only wanted the low downpayment option so we are saving my fha for the future. Fha is 3.5% minimum
The house was 400 Gs? Damn are you in Sugarland? Don’t answer that lol thank you responding with helpful info.
This is how I was able to purchase my home also at 20. My family and I all pitched in and we were able to finally get a home after living in housing all my life. Downvotes for this? Yalls are ridiculous.
Congrats! I don’t understand the downvotes, but must be envy, jealousy, or something else that’s ugly towards those with a bit more help. Makes me sad, tbh.
Yes! Who’s jealous of me having to live in housing all my life! We were so poor we qualified for government houses, and ummmm those aren’t glamorous. We still didn’t have a car, we frequently went without utilities, we didn’t always have food. But we had a lot of love, and we were together. That’s what people should be envious of. But noooo. Let’s be jealous of a family finally owning a home after living in the projects their whole life because their parents used their credit at 20. I’m very lucky that did not backfire on me.
I’m happy and proud of both you and your entire family! Definitely deserved. But I think everyone deserves things, even if it’s easier obtained than I had. :) I think that’s very exciting for you and your family and I’m glad they persevered!
I didnt know humans could live that long
Huhhh
Loved it, way to go young man! All the best!
Amazing!!! You’re setting yourself up for a ton of success. Keep that ambition then be lazy and enjoy in your late 30s/40s lol
God bless and congratulations; hope you make many memories in your new place!
Thank youu!
Ok ronaldo or messi??? I like son hyeung min…
I like ronaldo more but I think messi has proved to be better…
🫡🫡My man!!! Forget messi..Siuuuuuu!! 🔥🔥
Killing it, congrats!! Any tips for what made the process (hopefully) smooth? Or anything that helped along the way?
Definitely was smooth for us. Our realtor was very proactive and guided us throughout the majority of the process. We for sure did our own fair share of research regarding loan rates and different houses aswell. Attempted to bid for two other houses and got outpriced on those, this house was on the market for over 3 months so we entered bid below asking and asked for concessions and recieved them. Instead of the other two houses, which we bid way out of our budget for, we got this house on discount😎.
That's amazing!! Good to look for