If i get my own one bedroom apartment, I'll only be able to save 6,600 next year towards a condo. If i stay with my roommate, I'll only be able to save 10,200.00 towards a condo... The government will give me $8,000.00 for free if i buy by the end of November...
I want that 8,000 since I've decided it's this year or next... and if it's next i'll essentially have less money since $6,600 that i have to save is less then a free $8,000
So, I was re-looking online at a complex that lost it's FHA approval because it had 52% of the place as renters. It's in a really cute neighborhood, near the new church building site, close to boyfriends family... and not in the city I work for... =)and has a lot of amenities. It's nice, gated, in a good area, and I'd get a garage with this one bedroom (which is nice to know that my car is safe.)and the building is a lot newer then some of the other places I've been looking.
The only thing is that because it's not FHA approved, I'd have to have a 10% down payment (not the 3.5% with an FHA loan). The listing price is 139,900 but because it's not FHA approved, its still an active listing. (because people don't have money for down payments.)If i keep my closing cost estimates as a guideline, I'd need approximately 20,241 to cover everything ( the closing costs, down payment, and a few hundred to help cover the rent of my current apartment that i'll be short each month while I'm paying for a mortgage)
I have $12,817.66 in my house down payment fund.
I have $1,500.00 sitting in my Florida vacation fund
I have $1,283.28 sitting in an account to repay myself for buying that extra work retirement.
in 2 weeks i'll have the remaining $2,000.00 to deposit in my Roth IRA...
all together that's $17,600.94
I have $7,000 in an emergency fund... (which i could borrow $2,640.06) from and still have $4,000 as a cushion. I also found out that if roommate looses her job, we an walk away from our apartment without any penalty fees so if i get a condo, and she gets fired, we can just end our lease on the basis of that and i won't have to fork over the whole rent money.
That gives me all the $$$$$$ i need.
In January when i get the $8,000 i can max out my roth ira for 2009. I'll also have gotten my raise by then so i won't need to pay back the purchase retirement money (1283.28) I can put my emergency fund back in tact and still plan the Florida trip.
At the end of August (which is more likely the time i'd have to close escrow by and fork over all the dough if i make an offer on this place in 2 weeks when i get paid again, I'll have another 1138.95 to toss toward the house downpayment fund... so i'll only have to borrow $1500 from my down payment fund.
Essentially, i'd make money on the deal in the long run because the government would be paying my closing costs... and I'd have 10% equity in the property.