How can the average American afford a down payment on house?
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you picked the worst listing . nice try, nobody wanna live in Vegas
R.E.N. Spells Ren
Veteran
We are,and I don't think in general most people HAVE to pay 2K a month in rent. The lease matters just because I don't think somebody would pay rent for 10 years at that price if they wanted a house. But you are saying 2K is the bare bones minimum you can pay for a decent place to live. I will say if you do have to pay that much for an apartment or wherever you are living I doubt the rent will go down much when you get a house,utility bills go up,property taxes and other fees possibly have to be paid. If you would struggle to save 300$ I would still say you can't afford that house. Doesn't sound like you have the ability to be able to save up money for if worst case scenarios were to happen once you are in the home. You better have money saved for the down payment,plus you need to save another 5-10 years to have a nice cushion
This sounds more like a NY scenario or a city like that if you are paying 2K for rent. I will say I didn't know you could get nice houses like this for around that price in NY though,this crib only 215K. ?
Ashberry - Yates Farms Condominiums by Amedore Homes | Zillow
edit:wait,nevermind thats not one house
I didn't say this breh
Let's back it up a bit. I started by taking issue with your assertion that if it took someone 10 years to save downpayment money ($40k...which is 16% of 250k, not 20%, but we'll roll with it), then they can't afford a $250k house. I said that wasn't necessarily true at all and that you couldn't make such a statement without knowing how much they were paying for rent.
For a $250k house with $40k down, a 4.5% fixed rate on a 30 year mortgage with a 1% tax rate, you're looking at a payment of about $1300 for principal/taxes/interest. So if they're already paying rent of at least $1k/month and saving $333/month on top of that to come up with the downpayment, then they can afford that house.
If they pay less then they may not be able to afford that house, but the point is you can't make that general statement. At least $1k/month is pretty common. I only brought up the $2k example cuz at that amount it's clear they can afford the mortgage, but still may struggle to come up with the downpayment.
calixprynce
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whats the difference?????
That’s shyt looks like the complex from Insecure
paperbag
Death to the demoness Allegra Geller
If you're sending them to public school: green valley ranch, anthem, summerlin. If you don't care about the school: Silverado ranch, seven hills, any area in Henderson other than old henderson. If you just want more house for your money, centennial hills. Lad Vegas has the worst schools in the country, I think it lost to Mississippi again this year.
You may want to wait for the crash prices are really high right now
NZA
LOL
baby boomer parents help a lot of these people in some capacity, either through inheritance or a one time financial gift at some milestone in the person's life
calixprynce
...
That’s shyt looks like the complex from Insecure
im glad im not bougie like you nikkas
I saved and took out a pension loan. No hit and I'm paying myself back. 10 mins from NYC 
Bought a starter 2 bedroom apartment. I'm happy, and since the same apartments are selling for 50k more less than a year later, I'll be good when its time to upgrade.
Bought a starter 2 bedroom apartment. I'm happy, and since the same apartments are selling for 50k more less than a year later, I'll be good when its time to upgrade.
I saved and took out a pension loan. No hit and I'm paying myself back. 10 mins from NYC
Bought a starter 2 bedroom apartment. I'm happy, and since the same apartments are selling for 50k more less than a year later, I'll be good when its time to upgrade.
There a lot of things wrong with taking out a pension loan
philmonroe
Superstar
Would you black white fakkits stop with this black people insert negative shyt please. If you do that shyt speak on yourself don't fukking generalize your own people,who you definitely don't know all of them smfh. Lastly people want to live in nice neighborhoods not where white folks live so if there happens to be white folks that's part of,the trade off but that isn't the 100 percent fact. Get off whites dikks.I wont say that,but black people are horrible about trying to live in there "dream house" before its time,and because thats where they moved all the resources to have better schools. When succesful black people,and couples could just live in the hood within our means.Buy cars within our means,and take the excess money and reinvest in our communitys.
I would love to have about 200K,buy some land and build a bunch of these on it.
A 10K tiny house 3D-printed in 24 hours
Wait and see how technology pans out before you overpay for houses.Your 250K house of today could maybe cost 50K one day soon.
I didn't say this breh
Let's back it up a bit. I started by taking issue with your assertion that if it took someone 10 years to save downpayment money ($40k...which is 16% of 250k, not 20%, but we'll roll with it), then they can't afford a $250k house. I said that wasn't necessarily true at all and that you couldn't make such a statement without knowing how much they were paying for rent.
For a $250k house with $40k down, a 4.5% fixed rate on a 30 year mortgage with a 1% tax rate, you're looking at a payment of about $1300 for principal/taxes/interest. So if they're already paying rent of at least $1k/month and saving $333/month on top of that to come up with the downpayment, then they can afford that house.
If they pay less then they may not be able to afford that house, but the point is you can't make that general statement. At least $1k/month is pretty common. I only brought up the $2k example cuz at that amount it's clear they can afford the mortgage, but still may struggle to come up with the downpayment.
in the scenario we were talking about the car payment was a barrier and used as an example of extra money they could be saving. in order to get a down payment on a home. Sombody who is paying 2K a month for rent for the hell of it,could easily have saved up for the downpayment 3 times as fast if they wanted to,they are taking 10 years by choice in your scenario. The person in your example is stunting to if they are paying 2K for rent but can barely afford to save 300 a month. Your scenario isn't very realistic and completely changes the scenario we were talking about with the car payment. If they are paying 2K for rent when they could be paying 1K,the car payment isn't the problem at all in that scenario anymore. They could actually be saving about 1200-1400 a month instead of 300$..
I made the assumption that if the car payment is what should be sacrificed for extra money,the person doesn't have any areas where they could cut down to get money that would equate to the car payment.
But still in all this person can't afford that house
. What you are arguing is the problem with alot of people buying houses. Yes you are right,technically the person CAN afford that house at 1300. But they still can't really afford that house and should be looking elsewhere,especially in that 1K scenario.But lets give this person the 2300 a month total and be generous. They are paying 1300 for rent,lets say 100 for car insurance, 150 for utilities,100 for groceries,50 dollars a month for gas,100 on the phone bill. If my math is correct we are at 1800 a month if you live bear bones minimum for about 30 years. But lets be realistic and say the person wants to actually go out,drive places other than to and from work,maybe have a pet,buy some actual good groceries,live a little. Lets say they only spend about 200$ a months on extras. Now they are at 2000 a month. They are back to only being able to save a extra 300$ a month,couldn't take a car payment on if you needed to now
Your supposed to have 6 months worth of rent and living expenses in your savings. Hope nothing goes wrong in that year or two it will take for them to save that up. Hope they don't ever need a car payment to get back and forth to work so they don't get fired.I'm just saying,these are scenarios many people don't think about,because they only think about what they technically can afford. Plus this isn't ideal for wealth building whatsoever which is what black people need to be worried about when we are behind,and are lucky if we don't start out in the red in our communities. Guess that isn't as important as taking pics for the gram with your feet up on that big nice patio
Not really, your paying the money and interest back to yourself
It’s actually a good idea for a down payment option
No it's not, saving the tge money and not taking any loans is a good down payment option. I can go through the list of things wrong with taking out a pension loan but I'll assume you're aware of them.