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Author: tierlyn Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 127697  
Subject: Re: buying with 100 percent financing Date: 4/15/2004 12:15 PM
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Anaglyph,

My recommendation would be that if you're buying with 100% financing, you can still get the house, but also GET A HOME WITH MORE THAN ONE BEDROOM and then GET A ROOMMATE.

This is what I have done/am doing:
1. Bought a condo for 20% LESS than the lender said I could afford
2. Bought a condo with more than one bedroom
3. Renting out a bedroom for 1/2 of the mortgage ($500)

...and I paid 1% down.

IMO, if you do it this way, it doesn't matter if you don't put much money down because someone else is paying half of the mortgage anyway. And as long as you don't buy above your means by getting parents to co-sign, etc., you ensure that you're paying waaaay less than the bank says you can afford, by having someone else 'help' you with the payments (the renter). You can even pay the full mortgage yourself every month, then add on the renter's payment as an additional payment, which should help you gain equity faster. If there's an emergency, you've got the renter's $$$ to help bail you out.
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