I have $0 saved for a down payment. I want to buy a home in five years. What should I do? Go:

[Boopie]

Join the military for two years. Army has shortest enlistment. Don’t get killed. Report any ptsd or headaches/backaches whatever, get 10% or more disability. Then get out get a VA loan, which have better rates overall since the default is low for veterans, no money down and never pay pmi, with disability (exempt) pay no VA funding fee. Use your gi bill, army college fund, tuition waiver, financial aid and get paid to go to college while you pay off your VA loan financed 4 flat and collect money from your three other tenants as you attend school. Graduate, have a great life!

[Deadwind96]

Check out Dave Ramsey.

[Frankie]

i would like to know if you have to pay 3%, 15% or 20% for down payment all the charges are included? like tax and others? would have to pay another agent to look for the house? if so, what are you going to pay him his fair commission? the price is negotiate before?

[nonsense fighter]

Total nonsense. If someone has, say, a student loan, paying it off over many years before buying a house is simply stupid. And killing yourself by eating **bleep** is even worse idea - your heath will deteriorate, so your work will be affected, so your career will be affected etc. Or, if you are lucky not to get fat and sick, you will waste your youth. Enjoy life, have vacations. Buy affordable house as soon as you have 3.5% using FHA. Yes, you pay mortgage insurance, but IT IS CHEAPER than if you had to put so much cash out. Even when I have 20% down, I still use FHA and use the 20% in another investment. This works, as long as the value of the house goes up or as long as you can for sure afford the mortgage.

[Stonetone]

Are you a veteran by chance? If you ever served in the military and we’re honorably (and sometimes even generally) dischanged, you qualify for $0 down payment. 

All active, reserve, and veterans qualify for a VA letter (as long as you served honorably). This letter is a promise from the VA that you will make the payments. It’s not a loan however. You will still need to get a loan through a lender but a down payment is not required. 

[Cp301]

Good advice, but a little over the top there. If you can live below your means before you don't need $10k to rush and outfit a house right away. Setting goals is key, and minimizing expenses to vault your home ownership to top priority should be your main goal. 

Cutting out all extra expenses, dinners out, coffee shops, movies, etc. If you're married I suggest setting up a 2nd savings and you or your spouses salary goes directly there. Pretend it doesn't exist. Live off one salary. Can't do it? Bull... People do it all the time it just takes work. 

Look for more affordable housing, budget everything! 

You're down payment comes quicker than you'd imagine. 

[Critter]

First sit down with a local Mortgage broker that will give you the straight facts ... talk to more than one ... they should give you an initial consultation for free and not require you to lock into them for a future mortgage. 

They should tell you how you stand now and tell you what you need to do to get where you need to be ... they can also educate you on all the local/state programs to get you down payment assistance and/or low cost mortgage rates.  

[WRJSberlin]

Not very realistic advice in MY area. ENTRY level (first-time buyer) houses START at 1.5M (and usually going for 20-30% HIGHER than asking price). Rents are ASTRONOMICAL (you are EXTREMELY lucky to be paying less than FIFTY percent of your income in rent.) Forget  that idea of finding a meal in the dumpster behind McDonald's  - you need to be LIVING in that dumpster!

[Debtlevereged]

Doesn’t work like that at all. Never join the military just for the benefits. I have access to the VA home loan as a veteran and I can’t use it for a multitude of reasons. Using VA benefits is a full time job on its own. The VA loan is only one of many different options for me and in my experience it’s usually not the best option. Every veteran I’ve come across feels the same way about that. Never jump in to anything without knowing all the FACTS. Opinions are everywhere and don’t do anyone any good. The VA loan is a great option for a lot of people but you have your own situation and other people’s opinions don’t apply to you. Getting rid of your debts is definitely a priority though, get on YouTube and start learning about leveraging your debt. You can make huge leaps and strides that way. As for the rest, listen to everyone else besides the clown that told you to join the military. That’s not a solution to anything it’s a life affecting choice that will change you forever.

[Grateful55]

You would pry like the book Richest Man in Babylon 

[Galexg]

You are so full of it. VA loan is the easiest loan you can have.

[Kaci]

It sounds like you might make too much to qualify for some first time home buyer perks, but I'd definitely still look into it! I used the first time home buyer grant in my area and they paid my entire down payment and all my fees. I just have to live here for 10 years and not rent or sell it. If I do, it's a pro-rated amount to pay back. Ummm.. the military comment... Unless you legitimately thought about joining before, don't. If you did think about it... Your degree lets you become an officer, which gets you a better salary than enlisted. They'd pretty much pay for your housing while you're in, and you could realistically just save the down payment while you're in. The loan option I took was better than VA home loan. Honestly, most of the time there's a better option than the VA home loan if you have decent credit.

[Gidgamoe]

Look for a house that is four times what you make in a year to keep the payments under 25% of your monthly take home pay. If you go over 30% of take home money you will be house poor. If you need to buy a new anything it could destroy you. Keep it at or near 25%.

You can buy a house even without a credit score in case you didn't know that. It just takes more paper work than most banks want to do. A bank like Churchill Mortgage will work with you to get you approved for the loan. I know it's hard to believe that someone would actually take the time to realize that someone with no other payments has money for the mortgage.

If you get raises in the next five years then you can add that to the price of your homes value for purchase. I assume that you are trying to save for a down payment so knowing how much the house will cost means you know how much to save.

You don't want the real estate agent taking you to houses you cannot afford anyway. No need to get your hopes up of a house that is way over your price range. They will try to get you into a house that is slightly outside your range, stick to your guns about the price.

Use a resource like zillow to find the area that you want to live and see the prices of the houses there. It's not hard and is a starting point. Every sector of the country is different so too will the prices.

[Gidgamoe]

I would say buy as you go if you are single. Wait until next payday to purchase some of the things you need to live in your new house. Make all purchases with cash, he is recognized every where he goes and is accepted as fair trade.

[irfanpolat]

Hey,

Don't waste your hard earned money!!. Live way below your means and save like a maniac!! Track your expenses and beware of where each and every dollar is going...Cut the expenses..literally..! Don't eat out...Don't buy new clothes..you have already plenty. Don't go to vacation until you save enough for downpayment...Don't go to Starbucks, and etc.. Whenever you see something to buy always ask yourself "Do I really need this? and how much time this purchase will delay my dream which is buying a house?". Drive a cheap paid off car.  do not have car payments ever. Delay your current pleasure for the sake of your dream house!!!!