how do you come up with a down payment?

GraySaturday
GraySaturday Posts: 2,878
edited July 2008 in All Encompassing Trip
I'm interesting in knowing how you came up with a large sum of money for your home down payment. That is, if you own a home, and put down a down payment.. haha.

My husband and I have been discussing how things have changed in society, and how people used to get a lot of help from their parents, and get big signing bonuses and such.

We're at a loss as to how to come up with 40-50k. Its not like a year of saving would get us there, or even 10 years.. haha.

How did you do it?
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Comments

  • StateOfLoveBoatCptn.
    StateOfLoveBoatCptn. Posts: 904
    When we bought our first house it came from an inheritance that I got early for just that. Grandma had some money for each of us two kids. Honestly though I have no idea where people can come up with a down payment for a home with the way prices are these days. It really DOES take a huge bonus, or years of prior saving/planning, or getting it from family. Its nuts. I know thats no help to you probably ;) but sharing my experience with this
  • GraySaturday
    GraySaturday Posts: 2,878
    Yeah, we're at a loss. We're not in fields that offer signing bonuses. And and this economy, who is? We're lucky to have jobs. It sucks because we can afford a real nice place downtown, but its the down payment that we just don't have up front.

    My friend suggested that I donate my eggs. That seems like bad karma to me.. Tempting at a 10k fee, but I don't think you should do that if you're only doing it for money.
  • justam
    justam Posts: 21,415
    GraySaturday wrote:
    Yeah, we're at a loss. We're not in fields that offer signing bonuses. And and this economy, who is? We're lucky to have jobs. It sucks because we can afford a real nice place downtown, but its the down payment that we just don't have up front.

    My friend suggested that I donate my eggs. That seems like bad karma to me.. Tempting at a 10k fee, but I don't think you should do that if you're only doing it for money.

    You're selling your unborn children if you do that. Somehow that seems gross.
    &&&&&&&&&&&&&&
  • GraySaturday
    GraySaturday Posts: 2,878
    justam wrote:
    You're selling your unborn children if you do that. Somehow that seems gross.


    Yeah I rather rent at that point, for sure.
  • smithnic
    smithnic Posts: 1,565
    You go on some pretty crazy hormones I've heard.

    There is a reason that's it is almost 10K to have it done, it's probably not easy.
    Go Get 'Em Tigers!
  • Inhiding230
    Inhiding230 Posts: 362
    We managed to save $10k each for a total of $20k - I saved as much as I could out of each paycheck for just over a year. It was hard, but we didn't buy anything we didn't need for a full year beforehand. I forgot to add that we lived in a small apartment and also were debt free, so that helped.

    Because we didn't have enough for the full down payment ($35k) we would either have to pay PMI (private mortgage insurance), added to each payment, or take out a 2nd mortgage at a higher rate (8%). So we did the latter - it worked out better financially - the mortgage person will crunch those numbers if you ask them to.
  • CityMouse
    CityMouse Posts: 1,010
    If you find out let me know!

    Well seriously, I'm fine with renting. the only problem is it's getting harder to find high quality apartments.

    everyone I know who owns a house (in urban areas) by or in their 30s has rich parents who took care of the down payment or there was some other extenuating circumstance with inheritance or something. I don't know anyone of our generation who can actually just afford a downpayment. I don't know where you live, but it seems the only place one can afford a house in like the south or rural areas of the midwest, etc.

    how can people have a good $40, $50 thousand saved? Between student loans, rent, etc., even people who make a good salary can barely get by.
  • StateOfLoveBoatCptn.
    StateOfLoveBoatCptn. Posts: 904
    GraySaturday wrote:
    Yeah, we're at a loss. We're not in fields that offer signing bonuses. And and this economy, who is? We're lucky to have jobs. It sucks because we can afford a real nice place downtown, but its the down payment that we just don't have up front.

    My friend suggested that I donate my eggs. That seems like bad karma to me.. Tempting at a 10k fee, but I don't think you should do that if you're only doing it for money.
    well do it for someone who can't have kids then :) having gone through a 3-year battle of trying to have a child (fertility drugs, to invitro, etc.), and spending over $30k doing so, I know how hard it is on women who physically can't do it, as well as the family involved. Not to mention the cost. You'd be helping yourself, and possibly a family as well
  • GraySaturday
    GraySaturday Posts: 2,878
    StateOfLoveBoatCptn. wrote:
    well do it for someone who can't have kids then :) having gone through a 3-year battle of trying to have a child (fertility drugs, to invitro, etc.), and spending over $30k doing so, I know how hard it is on women who physically can't do it, as well as the family involved. Not to mention the cost. You'd be helping yourself, and possibly a family as well

    I should make a thread about that, to see if anyone has gone through it, on the donation side.

    I'm scared I'd get attacked though...
  • CityMouse
    CityMouse Posts: 1,010
    StateOfLoveBoatCptn. wrote:
    well do it for someone who can't have kids then :) having gone through a 3-year battle of trying to have a child (fertility drugs, to invitro, etc.), and spending over $30k doing so, I know how hard it is on women who physically can't do it, as well as the family involved. Not to mention the cost. You'd be helping yourself, and possibly a family as well

    oh I meant to comment on the egg thing as well. I've considered this...but then you'd actually have a kid...with your dna and everything...running around out there somewhere. to each his own but I don't think I could do it.
  • Phantom Pain
    Phantom Pain Posts: 9,876
    We both saved like hell when living at home

    When I got married I had 50k and she around 25k

    Right now we manage to save $800 a month between the 2 of us
    My drinking team has a hockey problem

    The ONLY thing better than a glass of beer is tea with Miss McGill



    A protuberance of flesh above the waistband of a tight pair of trousers
  • Inhiding230
    Inhiding230 Posts: 362
    GraySaturday wrote:
    Yeah, we're at a loss. We're not in fields that offer signing bonuses. And and this economy, who is? We're lucky to have jobs. It sucks because we can afford a real nice place downtown, but its the down payment that we just don't have up front.

    My friend suggested that I donate my eggs. That seems like bad karma to me.. Tempting at a 10k fee, but I don't think you should do that if you're only doing it for money.

    Donating your eggs is very good karma imo - you are helping people who are not able to have children. I actually did it 3 times when times were hard and my daughter was young. It is not easy though and is very hard on your body to have to pump all those hormones into it. But for me it was worth it, both financially and the reward of hoping you helped someone have a child.
  • StateOfLoveBoatCptn.
    StateOfLoveBoatCptn. Posts: 904
    GraySaturday wrote:
    I should make a thread about that, to see if anyone has gone through it, on the donation side.

    I'm scared I'd get attacked though...

    dont take it as an attack. take the information that matters/means something to you, and make those decisions for yourself.

    people on here attack for anything :D

    I think it would be a good idea actually to see what you come up with
  • GraySaturday
    GraySaturday Posts: 2,878
    CityMouse wrote:
    If you find out let me know!

    Well seriously, I'm fine with renting. the only problem is it's getting harder to find high quality apartments.

    everyone I know who owns a house (in urban areas) by or in their 30s has rich parents who took care of the down payment or there was some other extenuating circumstance with inheritance or something. I don't know anyone of our generation who can actually just afford a downpayment. I don't know where you live, but it seems the only place one can afford a house in like the south or rural areas of the midwest, etc.

    how can people have a good $40, $50 thousand saved? Between student loans, rent, etc., even people who make a good salary can barely get by.

    I live in Chicago. The places we are looking at are around 250k give or take. Its hard because we're not looking at big places, I mean these are 1 bedrooms!

    Its depressing, I mean I just took out 16k for my first year of Grad school in September and thats not even going to cover it all. I just don't want to have crazy loans, so I am trying to use loans and my own money. But I feel like I will never get ahead. Catch 22, I need school to get a great job, and I need loans to go to school..

    argh!
  • anotherclone
    anotherclone Posts: 1,688
    Depending upon your loan amount, you can qualify for an FHA loan which has a lower down payment than conventional loans. 3% I believe it is. Which is still a LOT if you're looking at a $200,000 house, but it's less than 10-20% down.

    A lot of the more creative financing programs are drying up in this nutty market but if you can get a referral to a reliable loan officer (ask friends or co-workers who they have used for their mortgage loans), they will be able to tell you what you qualify for.
  • Brain of J.Lo
    Brain of J.Lo Posts: 3,259
    GraySaturday wrote:
    Yeah, we're at a loss. We're not in fields that offer signing bonuses. And and this economy, who is? We're lucky to have jobs. It sucks because we can afford a real nice place downtown, but its the down payment that we just don't have up front.

    My friend suggested that I donate my eggs. That seems like bad karma to me.. Tempting at a 10k fee, but I don't think you should do that if you're only doing it for money.

    We got very lucky and Greg's parents helped us out with the down payment. However, we're in the process of building a savings account back up so that we can move to a bigger house in a few years, (because who knows how much value our house will gain or lose in this market) so I feel your pain on saving money. (We blew through our savings during tight times when hubby first started his new job and initially had to take a pay cut.)

    My husband is basically working a lot of overtime and putting a big chunk of it into into savings. We're currently putting away about $125 + each week in an ING savings account. It's not easy. We have one car (with a very low payment) and he just recently got a cell phone after sharing mine for the past 3 years. We do without a LOT of things that I would love to have and it's been a big adjustment to do that...because I grew up totally spoiled. ;) lol :D But, I know that someday things will change.

    I'm going to start working about 3 days a week pretty soon and I'm trying to think of a way to bring in some extra cash from home (like something I could make and sell on etsy, for example).
  • Phantom Pain
    Phantom Pain Posts: 9,876
    Brain of J.Lo wrote:
    I'm going to start working about 3 days a week pretty soon and I'm trying to think of a way to bring in some extra cash from home

    Finally taking my advice about stripping

    ;):D
    My drinking team has a hockey problem

    The ONLY thing better than a glass of beer is tea with Miss McGill



    A protuberance of flesh above the waistband of a tight pair of trousers
  • riffrandall
    riffrandall Posts: 685
    Raid your 401k plans.
    Either way it is an investment, either in yourself with a house, or your future that is uncertain. You can take out of your retirement for a home purchase without penalty. (Unless you do a hardship withdrawl & for that you get dinged at 20%, but it might be worth it.)
    "If you're looking for someone to pull you out of that ditch, you're out of luck."
  • Get_Right
    Get_Right Posts: 14,127
    ten years of savings
    and you can buy with 5% down if you have good credit
  • CityMouse
    CityMouse Posts: 1,010
    GraySaturday wrote:
    I live in Chicago. The places we are looking at are around 250k give or take. Its hard because we're not looking at big places, I mean these are 1 bedrooms!

    Its depressing, I mean I just took out 16k for my first year of Grad school in September and thats not even going to cover it all. I just don't want to have crazy loans, so I am trying to use loans and my own money. But I feel like I will never get ahead. Catch 22, I need school to get a great job, and I need loans to go to school..

    argh!

    well perhaps you just need to enjoy renting for a while longer. really a house is just a "thing." as long as you have shelter over your head, you're all good.

    In the Boston Area, you're looking at $350-$400K for a very small condo (most likely with no parking, that's separate).

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