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Old 06-09-2013, 08:04 PM   #1
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Building my first house!


I am currently working as a temp for the city of the Montgomery, I am making $9.35 I am hoping it turns into full time work or either I land a carpenter job with city that I've apply for. I am wondering would could I afford to build a starter home on that income or do I need to make a few $$$ more? Here are some starter homes I am looking at

http://www.monsterhouseplans.com/fav...lan20-155.html

http://www.monsterhouseplans.com/fav...lan49-108.html

http://www.houseplans.com/plan/1183-...2-garage-20537

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Old 06-09-2013, 10:31 PM   #2
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Twenty percent is still the norm for a mortgage loan down payment unless you qualify for an FHA or a VA loan. I doubt that you could get approved with a temp job, let alone one with pay that is just over minimum wage.

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Old 06-10-2013, 04:21 AM   #3
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I understand that, I am worry if it turns into full time work the pay would stay the same.
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Old 06-10-2013, 06:48 AM   #4
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Unless you got approved for something like a Habitat for Humanity home the pay is about 1/2 of what you would need to get a loan.
Spend less time looking at plans and stop by the bank and ask exactly what there going to require so you will be able to set up some goals to work toward.
Even people with a great credit history, and a good down payment are having a hard time getting loans.

Yhttp://www.bankrate.com/calculators/mortgages/new-house-calculator.aspx?ec_id=m1162139&ef_id=ULdt9wAAWGzhq Dtj:20130610114915:
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Old 06-10-2013, 07:34 AM   #5
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Are you planning to have a contractor build the house, or would you build it yourself? If you intend to do it yourself, you will not be able to get a loan no matter what your income. To protect their money, banks want a licensed professional to be responsible for the job.

I recommend you look at existing houses similar to what you want to build and see what prices they're selling for. That'll give you an idea of the mortgage you'd need and the income required to qualify. Then you'll have a goal to work toward.

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Old 06-10-2013, 07:36 AM   #6
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When you say "build", what is it you mean? Act as the general contractor yourself? Or do most of the construction yourself?

Don't want to burst your bubble but without any past history having done that kind of work you're extremely unlikely to find a bank that would lend you the necessary money for that kind of thing. Building a home requires a considerable amount of up-front cash in order to get the process rolling. Permits, site plans, site preparation, foundations, etc, are all going to have to be paid up front. Initial quantities of materials likewise. All paid out of pocket before the bank will even think about cutting a check.

They're not called 'starter homes' because you're doing the starting. A builder typically does the starting. You're just buying a place that's already been built.

Start with a website like zillow. See what the prices are like in areas you'd like to consider. Most sites like that have calculators on them that help you figure out your total monthly costs. There's more than just the mortgage; utilities, taxes, homeowner association fees if the neighborhood has one, etc.
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Old 06-10-2013, 07:51 AM   #7
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Quote:
Originally Posted by wkearney99 View Post
Start with a website like zillow. See what the prices are like in areas you'd like to consider. Most sites like that have calculators on them that help you figure out your total monthly costs. There's more than just the mortgage; utilities, taxes, homeowner association fees if the neighborhood has one, etc.
Zillow is really good for finding stuff for sale in the are that you want to live. It's how the wife and I found our current home. I go on there all the time to look at the listings that pop up in our neighborhood. Changing the down payment percentage give a pretty accurate estimate about the amount you'll pay for a mortgage. I just looked at my house's entry and put in the correct info, and when i added what the Zillow estimate was for the taxes, got a figure that was only $20 less than what I actually pay.

Although I share the concern that others in this thread have; I'm not sure how much house you'll be able to afford with just you making 9.35 an hour. I make a bit more, and so does my wife. We needed both incomes to qualify for our fairly affordable home.

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Old 06-10-2013, 02:04 PM   #8
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Fifteen years ago, after being out of work for a couple of years in an industry where I was making $75,000+, we moved and I took a job paying less than you make. The biggest loan we could qualify for, to purchase a used mobile home, was $24,000. And that's only because my wife worked at the bank. On your current salary, you'd be lucky to qualify for a car loan.
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Old 06-10-2013, 02:40 PM   #9
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Quote:
Originally Posted by CJIII View Post
I understand that, I am worry if it turns into full time work the pay would stay the same.
In that case I'd be looking at a different line of work.
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Old 06-10-2013, 02:55 PM   #10
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for years the way to figure out how much "house" you could afford was to take your annual income and multiply it by 3. this means you'd be spending 1/3 of your income on housing.

I believe most lending institutions have gone back to something similar to this now.

you would probably find better deals buying a fixer-upper than building or buying new.

Good luck!
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Old 06-10-2013, 03:00 PM   #11
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Look into Habitat. It's a ton of hoops to jump through, but it solves the initial $ qualifying problems. One was just built near me for $ 134,000.
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Old 06-10-2013, 03:11 PM   #12
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Quote:
Originally Posted by wkearney99 View Post

They're not called 'starter homes' because you're doing the starting. A builder typically does the starting. You're just buying a place that's already been built.

.


A starter home could be 50 years old. It means its for first time buyers, as in affordability
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Old 06-10-2013, 04:07 PM   #13
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I will be building it because I am a carpenter by training, the house is for me to live in. If I get full time with the city and I can change departments.
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Old 06-10-2013, 05:02 PM   #14
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My wife and I, both in our 60s, recently finished building our log home almost entirely by ourselves. Trust me, carpentry is one of the easiest and least expensive parts of home construction. We subbed out the foundation because there was no way I was doing block work at my age. Also the HVAC, because we couldn't legally do it, and the metal roof, because that's not a DIY job. Same for the septic system and well. Those things, plus the cost of the land, came to more than six times what you earn in a year. We had planned for the project for a long time, so did not need any loan. Also, I was retired and we lived in our RV on the property, so there was unlimited time for working on the house.

It is great that you want to build your own house. It is very satisfying, and very few people other than professionals actually do it. But you must be realistic about the timeframe and what it's REALLY going to cost.

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Old 06-14-2013, 07:25 AM   #15
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You would prob be better off buying a fixer upper and completely renovating it. Your going to need money for a down payment and lawyer fees up front. And with you making the money your making I am sorry but your going to need to do some saving. What you make is less the min wage in Canada( where I live).

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