Question: But most cities have a first time homebuyer program which will provide > preferable rates and a low-down (typically 3%) and minimal loan setup fees > if you meet the guidelines: income qualification and house price limits.
> If the home market is booming which it most certainly is in San Diego, there > is little incentive for a seller to do a rent-to-own or seller carryback or > other creative selling option unless the home is hard-to-sell ie fixer-upper, > on a major-street or backing up to industrial property. If you can compromise > on location, there are good buys in Imperial Beach to the South of San Diego.
> If you are in a desirable part of San Diego, I would hazard a guess that 20 > year old homes are going for around $150.00/SF which for a starter 3 bed/2 ba > 1400SF home is going to be around $210,000.00. If you are in the really > trendy parts of San Diego these numbers are meaningless. If you can come up > with $10,000.00 for the down payment and loan fees (not including tax > prepayments) and meet the income qualifications you could have a home. For > most of us we have to make compromises like the new car and boat just have to > go. And if you are in credit-card hell, you are going to have to work your way > out of that first.
Answer: Believe me, I have searched the avenues of first time homebuying in our area. We have good income and spotless credit, although we ARE in credit card hell!! Because of our outstanding debt, we do not qualify for a home in this area. We know what we have to do. I just last week bit the bullet and took some money that was set aside and paid off an entire cc bill!!! It really stung, and I have three more to go!! But that is our goal, thus my reason for reading the frugal living newsgroup!
We qualify for a home in other areas, inland, but I have two boys, and I really don’t want to move them away from the only community they have ever known, their church, their schools, their friends, etc. I didn’t mean to come off sounding like I want everything handed to me in a nice, trendy area. The beach is nice, but I’d move in a minute elsewhere if I didn’t raise children here. They both do so well in school. I just don’t want to take a chance on an upheaval. Then there are gangs to think about, or unsavory people who live in the less expensive areas. So my plan is to tough it out until the boys are out of school, pay off the debt and see what’s available to us then. Or perhaps my husband’s company will really take off and we’ll be in a better position sooner. (I can hope! =) It is my opinion that the homes in my area are seriously overpriced anyway. That starter home in my area is around $275 (low end) to $400k and up. I really should have given more thought to moving to such an expensive area when the kids were little.
I understand that there is little incentive for sellers to opt for creative selling when there are so many good loans out there. But just a couple of years ago, for sale signs were up all over the place and sellers were begging to sell whatever way they could. We weren’t ready at that time, unfortunately. It’s got to go back down. I’m wondering if people here are going to be able to keep up with the mortgages, with the going price today in SD.
I would *never* live in Imperial Beach. It is a nasty part of town…I’ve been there once and that was enough for me. It’s not a safe neighborhood and so close to the border. I’m sure I wouldn’t have this computer to type on for very long if I lived there!
I don’t have a boat and as far as a new car, I don’t even have *one* car, let alone a new one….well, for myself that is. We have one car and hubby drives it during the day. I have sacrificed so that we can get out of debt hell, and will *not* go deeper in debt any longer unless the slate is clear!!
On another note…I have heard that there is a new program going around now where you can consolidate your debt at the time of homebuying and add it to your home loan. My initial thought is that it would be insane to spread out your debt over 30 yrs.!! But I don’t know a thing about it…….has anyone heard of this????
Thanks for your note and suggestion…..but I guess I’m just not ready to move the kids!!
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