That's the smart thing to do as long as your actually saving. What helped me was renting an apartment with 2 other friends. That allowed me to have cheap living expenses and really save up for the DP.

 

BTW here's a good calculator to see how much of a house you can afford.

http://www.bankrate.com/brm/calc/new...a=0&Ed=0&tEo=0

 

Our house payment ($1226) is less than 30% of our take home income. My income is fixed for now, SSI disability and my wife makes almost all the money.

Our house payment includes taxes and insurance held in an escrow account.

 

Absolutely correct. I did the whole broker thing for a minute (about 2 months, lol, it was tier 2 and you had to be cold to do it...) I also sold cars for a little over a year, and most of the time that's what it's based on, too. We looked at what you make plus the bills that are absolutely necessary (credit card minimum payments, etc.). Between 35 and 45 percent was the ideal spot.

As for renting or owning... I had to prove 3 times my rent in income, on top of having good credit... Once I make more than my minimum wage, maybe I'll be able to buy a house -- but not for a while

 

once I start renting out in AZ, I'm going to be renting a studio for $610/month in Tempe. I'm only renting for 3 months and I'm hoping to move into a condo after my lease is up. I'm going to put 10-20K on a downpayment for a condo/home. I'm most likely going to borrow 100-130K.

 

same in NY (unless of course you want a studio co-op :reechy: )

 

my mortgage is about 20% of our combined income, but its still riduclously high because it is CA home prices.

Jumbo loans are all they offer here.

 

Uh, can't believe anyone would not itemize. Start a small business and imagine all the expenses you would have, like, CAR PARTS.