can we buy home with single salary

as we know that house market is down & is the right time to buy a home.
but can a 1 yr old married couple handle it with single salary?
I know we r very early to think about it.but almost every lady dreams about her beautiful home.my husband's idea is to have it if he has a permanant job.
what's ur opinion?
regards

Hi,

I guess it does not matter if you have one or two incomes. the point is you should be financially secure to ensure that you have enough for down payment, closing costs and monthly mortgage payments. Also consider the costs for owning a home - you have to pay all utility bills, maintenance and insurance. Be wary of the different mortgage schemes which may have lower initial payments but will increase after a few years - only you can decide what is best for you. There are plenty of mortgage calculators available online that you can use to look at different scenarios on income, cost of house, mortgage payment etc.

good luck and hope you get your dream house soon.

Thank you Mythraeyi.

It depends on what you are paying now as rent and what the mortgage payment per month is going to be and whether you can trim some expenses to accommodate that.
But in the long run, it is worth it. All the Best.

Depends on lots of factors

(1) How long are you planning to stay? Forever - Good decision. Planning to return to India - Got to think more.
(2) How is your husbands credit? For best deal, you should atleast get 5% to the max 5.65% rate.. more than that.. its going to be a killer
(3) What is your budget? $400K, $500k?, $700K?
(4) How much can you afford as down payment? 10K, 20K, 50K or more than 50K?
(5) Subtract the down payment from the cost of the house. That's your bank loan.
(6) Now add that amount with the interest that you might end up paying every month.
(7) Finally, thats the amount you will be paying towards your mortgage every month
( Now, decide if that amount is gone from your monthly salary, is there sufficient for other stuff - Utilities(Going to a bigger house, obviously expect bigger amounts ;) I was paying $40 avg in rent.. now it goes upto $200 at times), grocery, car (whether you are owing or leasing), kids if you have any or will have any in the next 10 years[if so, go to keep $500 separate ;)], telephone, internet, cable/direct/dish tv and above that if you want to enjoy your life, entertainment costs and finally your savings.

Let me tell all the newbies .. Please don;t expect that you will see profit and you can get more money back.. Rental is some money that you can never get back and all that. Please take a note, put down the numbers and calculate. There are many sites, that help you to decide, which will be better in the longer run like this: To Rent or to Buy? (Real Estate: Personal Finance) at SmartMoney.com
Whatever you will be paying towards an interest is what some might be doing as rent.. So what are you trying to achieve-think abt it :)

US REAL ESTATE is not like Indian one. If you plan to buy a house for $500K, you will end paying $600K or so over the period of time.. not sure if you will ever finish of the principal.

Now to really see a profit.. you got to make sure you do the sell with a profit of atleast 50K which is $700K.. So when you see a house as an investment.. think if you are really making an investment or just following your dreams blindfolded ;) its makes a lottttttt of difference :) because unless you are going to retire here.. buying a house is never an investment ... atleast not in the current market trend.. and for the next few decades.

hope you are following the news.. the real estate value is the lowest in 29 years ;) ..yep 29 years !!!

Well said,Nandhu.Exactly why we decided not to buy a house here eventhough our friends were compelling us to buy one when we landed here 3 1/2 yrs back..Today, we are pleased with our decision.We have invested enough in our flats in Chennai and are quite happy with that.

hi usha,nandu,sunitha
Thnaks for ur suggestions.
yes I have to think about maintanace also.
But a small clarification:it's my dream not an investment.
One fine day I have to think about my dream house.So thought why can't be now.Confused whether it may be the right time or wait as we too invested in flats in different areas in India & happy with them & the next target is investing in India again & then here in U.S.Now a slight change.
Anyhow all this is to feedback my decision & so can force my husband proportionately although he knows everything as he is 8 yrs senior to U.S.just putting all ilites & my thoughts before him.
regards

Hi Lalitha,
there is a program called Ameridream that offers down payment and closing cost waivers to first time home buyers. You & your hubby may want to look into that.