I would have suggested to Rich to get a loan but I came across a blog a while ago that there are dangers in that, too. There are lenders out there who would issue payment plus interest that is way much more than you could ever pay back.

Really, I don’t know what this world is coming into.

You expressed an interest in my blog. It’s not as developed as I would like (I have another life), but there might be things that might interest you.

If you have a sense of humor, try

http://clearcutbainbridge.blogspot.com/2006/04/math-for-real-estate-professionals.html

All the best,
Eleua

That owl is not on a consumer page, it is on a Realtor page adverstising a Realtor course being offered to Realtors. If the public happens there, then they see it, yes. But not sure the public is in anyway involved in the message, as the page you linked to is trying to encourage agents to take a class.

The owl with the dollars over his head suggests that Realtors who take lots of classes on lots of topics will be smarter, better to serve their clients, and hence richer. A logical progession for an ad, I’d say. Agent take class, agent be smarter, agent have more value to add to the equation equals agent makes more money.

I don’t find it misleading. May be misleading to agents who take the course and don’t make more money as a result. But not misleading to the public in any way, since it is not an ad aimed at the public.

I know this doesn’t go along with what you are posting, but I have a question for you and can’t (quickly) find a more appropriate place for it.
Why is the Seattle King County Assoc. of Realtors symbol an owl thinking about money? Seems to me like the wrong message to send to consumers…
http://www.nwrealtor.com/displaycommon.cfm?an=2

I do remember many years ago a client selling their car to a family member, and then buying it back. If you feel confident that you can afford the housing payment and the car payment, making the lender calculation wrong in your case, there are ways as you say, to get around it.

Why not try putting away the difference between your rent payment and eventual house payment, while still owning your car, for three or four months? Test your theory that you can do both before jumping in and buying a property. If you can consistently set aside the difference, you will be less likely to bite off more than you can chew.

Try to have three housing payments in savings before moving forward on a home purchase, it’s a great comfort buffer.

Thanks for adding your perspective. Averaging everyone to 20% down doesn’t fit reality though. In fact in pulling random recent sales, almost none of them were 20% down. The half a million dollar purchases were mostly less than 20% down. The high end homes were almost all more than 20% down.

Somewhere along the time line, everyone was encouraged to buy at max affordability. They get a letter from a lender that says they can afford to purchase at $350,000. Then they go out and see what they can buy for $350,000.

If their long term goal is to buy a single family home at $550,000, it would make more sense to go out and buy an “ugly” condo at $200,000. Improve the value by adding new carpet and kitchen and bath improvements, doing as much work themselves as they can to build up some sweat equity. Save the difference between what the payment would be at their max affordability level of $350,000 and their actual payment on the $200,000 purchase.

By doing that they will more likely have 20% down when they start having a family, and are looking for their first single family home. Rarely do I see someone with a lender letter at $350,000 wanting to see property for less than the max affordability lender letter indicates is their “purchase price”.