So I finally decided to take a plunge into home ownership.
Right now, since me and the ex are still technicall wedded, I can buy a house only using my income but have to show his debts as part of my debt to income ratio.
He has a lot of debt.
I cashed out my stock awards for downpayment and closing costs, but this still puts me in a delicate situation without the required down payment. I found a mortgage broker who will help, however we are riding the "funny money" mortgage debacle coat-tails right up until it becomes illegal on Oct 1st.
We are getting "downpayment assistance" from the seller which will become illegal on Oct 1st. This means they "give" me $5000 which actually gets added into the cost of the mortgage.
I am a little confused as to why this is becoming illegal. Most folks can swing a mortgage that is close to the current rent payment. For me I pay 1100 in rent or it looks like about 1076 in mortgage for the condo. My credit is excellent and I make plenty of money. I just lack 5% plus closing fees-ie 12 grand or so in cash.
I think the down payment assistance is just an easy target to blame. In reality the ARM mortgages are the real problem. There is no good reason folks in a state like Texas need a crazy ARM mortgage unless they are flipping houses. Mortgage brokers just found easy targets amoung the poor and uneducated (aka financially stuid). The ARMs are the reason for the high default rates.
Also I read somewhere that 75% of first time home buyers who show up with a significant downpayment got it as a gift from family. Not everyone has mom and dad to fall back on.
