2nd House buying in seattle
I own a house in redmond and pay 3400$ mortgage this includes taxes. But it is a small home 3BR 1800sqft. Current mortgage is in my name. I got aroubd 24% equity . Redfin shows around 150K more valuation than i paid. I see that renters are paying 3200-3500$ in my area. I need to move to 4BR need a office room/guest room. My wife is not working but plan to start working soon. Kids are now out of day care. We got 2 kids. Question - i want to buy 2nd home with minimum downpayment. What are my options ? TC - 255 #mortgage #housing #seattle
That's not a small house. Delusional.
It is for two kids and WFH. Privileged in the grand scheme of things? Sure I guess, but it’s not delusional. 3/2 become cramped really quick with two kids and WFH.
When I was a kid, we raised a family of 6 less space.
Wow very substandard tc, for the intersection of sea+ 2nd home ..
Do you have a backyard ? May be you can build an office in the backyard
If your debt to income ratio is going to be over 28% you’re going to have a hard time getting a loan. If you want to stay in Redmond and not move further out into a cheaper area you may need to wait until your spouse is adding to the household income, or just sell the first house and get out from under it.
Is that 28% post tax? Like is the numerator 28%(post tax) and denominator 100% pre tax
Before tax
The minimum down payment for owner occupied homes is 5% for conventional financing and 3.5% for FHA loans. Owner occupied= the buyer will live there for at least 12 months following closing, which is your case. FHA has some loan limit requirements for each MSA. Read the fine print on their site. I know blinders will say "avoid PMI at all cost". I'd rather not pay PMI than pay PMI. But i also like to keep liquidity and pay low down payments. There are ways of getting rid of PMI after 1-2 years and even up front. Read Fannie Mae's site on borrower initiated termination of PMI. Hope this helps.
Wouldn’t the monthly payment be gigantic with current mortgage rates? How could you afford it with your TC?
If you both are going to be WFH then you can consider Sultan,WA. It has some new single family homes around 500K. Pros: Price and proximity to Redmond. Takes around 45mins to an hr drive. Cons: Not sure if there is a good rental market there. So it's a good option if you decide to live there. Traffic can sometimes become problematic.
You can’t afford it
You can't afford it.
First, increase your TC