Rent Versus Owning - Baby
Enough of this renting crap. I am going out and buy a house.
Should you rent or own? Owning is my advice. I am sure that is your preference also. Don’t get discouraged if you are not there yet. But perhaps you should grow up intead of being discouraged.
Life has a way of sobering us up doesn’t it? The sub prime mortgage implosion took away options, where being patient is the new answer. Take note, patience is part of being an adult. All too few of us like being patient.
The past programs giving 100% loans if you had a 580 credit score was irresponsible. An industry with standards lost its way. So now you have to do business the old fashioned way: prove your income, have a credit score, maybe even put some money into the purchase. (Oh Shame)
Much of my career has been using FHA 3% down programs to purchase. This is probably your best option in the future. Back then I dealt with some who hadn’t grown up. Putting 3% down seemed impossible.
If you think you are mature enough to have someone loan you a few hundred thousand dollars be also mature enough to add some skin to the game.
When people said to me I can’t save 3% I wanted to send them to the corner for an hour. Of course you can. Sacrifice or time might be required.
The people who bought homes with a 580 score and 0 down were trading maturity for wanting their popsicle before lunch. Get your priorities straight. Are you a parent or a child? Act like it. Go save some money.
Pride might keep you from getting a second job. Fear might keep you from talking to a head hunter. Lazyness might play a role. Pride, fear, lazyness are qualities of the 12 grandchildren we have under 8 years old.
So the issue probably isn’t should you rent or own. The problem is are you a child really, instead of an adult.
Larry Cragun
PS: The photo is not of one of our grandchildren.
We had to rent for 8 years before we could buy. Interest rates were around 9 or 10%. We got one of the FHA loans and because we bought a house that needed to be rehabbed the city kicked in a silent second so we only had to spend a couple of grand. We put in a lot of sweat equity. If you ever need advice on lath and plaster wall repair, window glazing, refinishing hardwood floors, replacing siding, building porches painting etc. Just give me a call, I even have my very own power tools and none of them are pink.
Amen Larry. While I’ve been seeing (and posting) a lot of news bits about the pending amendments to the FHA loan program, I believe the whole market would be wise to stick with 3% on an FHA loan and to shy away from any alternatives that offer no-money-down scenarios. People should stop being lazy and, like you say, impatient.