patrick.net

CBETA says

Per my mother who is underwriter, she says when giving loans she always looked for people to have steady income prior to, and proof that they will most likely continue to receive it, made sure that new debt plus all debts were only at 33% income (we are dealing with smaller states, where salaries are usually under 50K), 6mo minimum to cover this expense plus all other monthly expenses based on past 12 mo of statements, and good credit standing. She held and still has the lowest ‘defaulted loans’ rating, which shows how many loans out of all she underwrote went to default.
That tells me she did something right.

Ditto! we seemed to have lost that Good Credit Standards (ie Common Sense) over the past few years.. but it is slowly being put back into practice. Not yet there, but it will take some time. Look for further tighting of credit standards to continue.

I think it's a good decision to buy. I have a friend who's wife did the same as you. She bought a house in Santa Clara while she was single and when they got married they moved to a bigger place and kept her house as a rental. This was back in the 90's during the last real estate bust now they've got about 4 houses and are pretty much set.

yes you are saving money renting but that money you saved gets wiped out if prices go up. Real estate market is cyclical so prices will go down but they will also go up. Better to have an asset so that you're at least in the game even if it's in a so so area.

Prices won't outswing her savings right now. Probably not for a little while. I was told once by a financial banker, when we were discussing personal stock choices, that buying a company coming out of bankruptcy is a pretty good investment, BUT wait until it's come out fully. There could be huge gains to be made, but it could also all go away. You'll still see great gains once it gets out. Essentially don't try and time the bottom, don't catch a falling knife, etc.

This market might be at bottom, many of us think it's pretty close already, if not recovering already. However, it can't hurt to wait another year to see what shakes out, at the very least. If it is going up, you miss the very bottom, if it's not there, you can wait another year or two. Better to catch it on the way up, and solidly up.

As for "10 years of paying off debt" Um. Bankruptcy an option here? Don't most people suggest it if you're over 5 years of paying back a debt at a large portion of take home? If you're not going to use his credit, trash it. 10 years is a VERY long time.

This thing is confusing.

CBETA, some questions for you.

Is this home a primary resident you want to stay in for long years, or is it possible investment you may sell in few years?

Did you talk about buying home with your guy, and what was his opinion?

pkennedy I'm not sure if that's the way I would play the housing market. It's a bit different from stocks in that solidly on the way up could mean it's harder to get the house you want.

Although waiting is certainly least risky since you're guaranteed not to win or lose by not playing.

I have no hesitation saying that now is the time to buy. Of course it depends on what you're buying but at the entry level you are mostly in the clear from any major price declines.
The issue in CBETA's case is the boyfriend situation. I say dump the boyfriend. I'm sure he's a nice person but marrying someone with 10 years bad credit is just a recipe for disaster.

pkennedy says

As for “10 years of paying off debt” Um. Bankruptcy an option here? Don’t most people suggest it if you’re over 5 years of paying back a debt at a large portion of take home? If you’re not going to use his credit, trash it. 10 years is a VERY long time.

well yeah, an option, but there is something to be said about honor. Acquired debt happened because he made a dumb move, but thankfully he was saved. He feels gracious and wants to repay for the effort.

seaside,
I would not plan to sell the house I purchase, for no good reason.
Yes, if I can no longer afford it, I will sell. Otherwise, I'd like to live there. Unless of course I am able to upgrade and/or keep it as investment and live in a better one.