I've been reading about the FHA first time home buyer loan and I'm still a bit confused on whether it's wise to take this option to stop throwing money away on rent, or whether it's worth renting until I can save 20% for a down payment.
Here's some information to go off of: * Late 20s * Student loans paid off * 20k car loan * 130k gross salary at a software company (was working at startups before which is why I don't have more saved) * Currently have 12k in savings and could realistically put away about 3k more per month * living in Austin Texas where cost of living is medium but property tax and home costs are much higher than surrounding cities in Texas * currently paying ~1950 per month in rent * looking at homes in the 300-350k range
Looking at the math it seems like I'd lose about 1.75% up front and about 0.8% annually due to mortgage insurance.
At this point I'm not sure whether it's worth it to start looking and try to get a house with around 5% down payment or wait for another 2 years until I can pay 20% down, meaning I'd throw away roughly 48k in rent (assuming my rent stats at 2k per month).
Thanks for all the help and advice!
Submitted January 02, 2019 at 09:55AM by Bauer_ATX http://bit.ly/2Swl6Gf
