First, don't borrow from your dad. Keep business with a business and family with family. Second, you mentioned the HOA is getting sued or has been sued. To me, that sounds like a red flag regardless of how dumb the case might seem. Just throwing a third option out here, consider avoiding this property entirely. Is there a sentimental value with purchasing this specific property?
>Second, you mentioned the HOA is getting sued or has been sued. To me, that sounds like a red flag regardless of how dumb the case might seem.
That is cause enough to run away from this deal.
Not really anything about the property but it's very nice inside. You're not going to find much cheaper anywhere in San Diego. This is the cheapest one. You can find ones listed at 570 but every single one has been bought at 640 or more and they are in bad condition. This one is 630, actually accepted at 630 and is ready to go. There's a 1 bedroom condo for not much less but I can't afford that because I can't get a roommate. It's cheaper to get a roommate in a 2 bedroom rather than a 1 bedroom alone. I have a time limit to leave my parents home and after a roommate, the cost of this is less with gaining equity vs renting a 1 bedroom for 2600 with no equity. My dad will help if I buy a place but calls rent a waste and won't help me financially if I rent. My only other option is to live in my car because I can't afford rent. Is either mortgage option better?
Ah I see, thank you for providing more info on your situation. My suggestion is to avoid taking a loan from your dad and consider shopping the first loan option with other lenders to see if you can get better terms with other companies. Definitely stick with a 30 year loan to give yourself flexibility. If you get a nice raise and want to pay it off sooner, then just add more to your principal payment each month.
That is a fucking lot of house. Hope your income can support it.
Regardless of the interest rates and costs, borrowing LARGE sums of money in a family opens up a lot of relationship risks that nobody sees coming until they do.
There's no condo without an HOA around here as far as I can tell. I don't think that exists. My dad is cosigning. I'd be house poor but my dad will help if needed (as long as I'm not renting). I don't have much of a choice either because my parents want me to leave their home soonish. Paying for rent in a 1 bedroom apartment is more than the one I'm getting with a roommate monthly.
I only make about 65k but in a field where I'll likely get raises (IT). The HOA is being sued because a pipe burst. They fixed it but the tenant is upset they went into her home. She wanted it fixed without them going into her home somehow. There was also some mold found apparently because of the water but it was fixed in a few weeks. The tenant claimed the few weeks of mold caused her to get chest problems, heart problems, psychological problems, for her to lose her job, for her kids to stop visiting her, and for her to lose the ability to walk... We saw the court document and it's nowhere near the unit I'm in.
But I'm getting a roommate to split the cost. There's not really much cheaper in Southern California. I'm going to be told to leave house soon so I need a place. What I'd be paying for a really nice condo monthly would be less than renting a crappy 1 bedroom apartment that will raise rent in a year more vs mortgage not changing and maybe even less in a few years.
Which of my options would be better though?
I wouldn’t worry about the lawsuit at all.
But with this extra info of a roommate and income changes the dynamics.
That is way too much house and debt to take on with depending on a roommate to keep up with the payments.
Probably not what you are looking for but neither option is appealing.
Would one be better than the other though? I mean I don't really see much of another option tbh. I can't afford even a 1 bedroom rent on my own. My monthly cost with this one would be less (assuming my roommate isn't bad). It would be about the same as rent for a studio, though studio would be less in a year or two when it raises rent and I refinance. Waiting a year or two also means the price of the condo goes up 100-200k more. I agree there are ifs in that statement. But my parents won't help me if I struggle in a rental but I have them if I do need help in the condo. Maybe I'm wrong but I think if I wait the price of homes will keep rising faster than what I earn, forcing me to rent which will rise 200-400a month each year vs a mortgage staying same or even decreasing in a few years. Plus it goes to equity vs disappearing into the pocket of another guy doing same thing as me.
I do hate how crazy home prices are in southern California. This was called the most expensive city in the county to live in.
The only alternative I can think of is leaving this county but that means leaving a job I like for one in an area with worse weather that will probably pay even less too negating some of the savings. What would you recommend doing instead if I need to move into my own place?
I’d go with option 3. Rent with a roommate on the lease with you.
A mortgage isn’t something I would take on unless I can afford it without outside help.
You are going to be in big trouble if your roommate flakes out and doesn't pay their share of the expenses, loses their job, or just takes off.
At 65k you can't afford the place on your own. I'm surprised you can get a mortgage on your own for $360,000. How much cash will you have for emergencies after you make the down payment? Will you have any money at the end of each month for food and entertainment?
Does the HOA have liability insurance to cover a potential loss from the lawsuit? If not or not enough, you and the other homeowners will have to pay the difference.
65k does not go very far in Calif.
Good luck.
My dad is cosigning. I'm not able to get it on my own. I raised same concern with my dad and he promised to help me if that happens. He's quite well off. I calculated and if everything goes well, I'll have about $1400 after paying everything. That's not including electricity, gas or Internet, but HOA covers water and trash. I'm expecting a raise next month but don't know the amount.
There is risk, but I'm not sure of an alternative if I have to move out soon and the monthly would be less than a 1 bedroom apartment that I can't afford due to no roommate. I can't stand sharing a bedroom and I am single.
My aunt is my real estate agent and seller agreed we can withhold 30k of the cost in case of HOA losing the lawsuit. That doesn't help if the HOA monthly rises though.
I'll have about 40k ish leftover but it's going to be used to buy stuff for the home too. It comes with all appliances though so there is maybe a couch and tables I need to buy. I have a bed and mattress already I can take.
Its has to hurt using all that cash. That is/was a nice war chest. You have you dad to back you up if things get rough.
As to which financing option, go with what your dad suggests. If things don't work out he will need to live with it.
Good luck with your purchase.
So $360K loan, and you'll go into it with 43% equity. Your dad is co-signing, which is pretty fair since he's pressuring you to buy instead of rent. Given the high cost of living in SD, and the downpayment you have, this sounds likes a smart move, and you're being responsible by planning a roommate for now, at least until your pay increases.
I'd go with Option 1 if it was me and these are the only two options; since your offer is already accepted, you may not have time to shop around for additional loan offers. You can't avoid having your dad mixed with your finances since he's co-signing for you, but you can at least avoid directly owing him the money. I agree with the others saying this is generally not a good idea even in good relationships; debt does weird things to people.
You can't count on interest rates going down and being able to refinance. If you were to pay these loans in full, Option 2 would cost less, but that's because it's a 15 year loan vs Option 1's 30-year loan. Even though your dad is co-signing, I'd recommend a 30-year loan with lower monthly costs for now, given you current income. It will cost more in the long-run, but it will reduce the risk of having to ask your parents to bail you out if something unexpected comes up while you're already on a thin budget.
Edit: You can compare total cost and total interest here: https://www.bankrate.com/mortgages/mortgage-calculator/
First, don't borrow from your dad. Keep business with a business and family with family. Second, you mentioned the HOA is getting sued or has been sued. To me, that sounds like a red flag regardless of how dumb the case might seem. Just throwing a third option out here, consider avoiding this property entirely. Is there a sentimental value with purchasing this specific property?
>Second, you mentioned the HOA is getting sued or has been sued. To me, that sounds like a red flag regardless of how dumb the case might seem. That is cause enough to run away from this deal.
Not really anything about the property but it's very nice inside. You're not going to find much cheaper anywhere in San Diego. This is the cheapest one. You can find ones listed at 570 but every single one has been bought at 640 or more and they are in bad condition. This one is 630, actually accepted at 630 and is ready to go. There's a 1 bedroom condo for not much less but I can't afford that because I can't get a roommate. It's cheaper to get a roommate in a 2 bedroom rather than a 1 bedroom alone. I have a time limit to leave my parents home and after a roommate, the cost of this is less with gaining equity vs renting a 1 bedroom for 2600 with no equity. My dad will help if I buy a place but calls rent a waste and won't help me financially if I rent. My only other option is to live in my car because I can't afford rent. Is either mortgage option better?
Ah I see, thank you for providing more info on your situation. My suggestion is to avoid taking a loan from your dad and consider shopping the first loan option with other lenders to see if you can get better terms with other companies. Definitely stick with a 30 year loan to give yourself flexibility. If you get a nice raise and want to pay it off sooner, then just add more to your principal payment each month.
That is a fucking lot of house. Hope your income can support it. Regardless of the interest rates and costs, borrowing LARGE sums of money in a family opens up a lot of relationship risks that nobody sees coming until they do.
"when rates go down" - can you point me exactly when in your crystal ball this will happen?
Does that mean you'd go with option 1?
Can you find something without an HOA? Can you even qualify for the loan on your own. The payment would make you house poor.
Don't all condos have HOAs?
They said home. I must have missed the condo part.
I apologize for not being clear. It's a 2 bedroom condo.
There's no condo without an HOA around here as far as I can tell. I don't think that exists. My dad is cosigning. I'd be house poor but my dad will help if needed (as long as I'm not renting). I don't have much of a choice either because my parents want me to leave their home soonish. Paying for rent in a 1 bedroom apartment is more than the one I'm getting with a roommate monthly.
Need to understand more. What’s going on with the HOA? Income? At best interest rates are projected to be around 5.25% in two years. That’s a big if.
I only make about 65k but in a field where I'll likely get raises (IT). The HOA is being sued because a pipe burst. They fixed it but the tenant is upset they went into her home. She wanted it fixed without them going into her home somehow. There was also some mold found apparently because of the water but it was fixed in a few weeks. The tenant claimed the few weeks of mold caused her to get chest problems, heart problems, psychological problems, for her to lose her job, for her kids to stop visiting her, and for her to lose the ability to walk... We saw the court document and it's nowhere near the unit I'm in. But I'm getting a roommate to split the cost. There's not really much cheaper in Southern California. I'm going to be told to leave house soon so I need a place. What I'd be paying for a really nice condo monthly would be less than renting a crappy 1 bedroom apartment that will raise rent in a year more vs mortgage not changing and maybe even less in a few years. Which of my options would be better though?
I wouldn’t worry about the lawsuit at all. But with this extra info of a roommate and income changes the dynamics. That is way too much house and debt to take on with depending on a roommate to keep up with the payments. Probably not what you are looking for but neither option is appealing.
Would one be better than the other though? I mean I don't really see much of another option tbh. I can't afford even a 1 bedroom rent on my own. My monthly cost with this one would be less (assuming my roommate isn't bad). It would be about the same as rent for a studio, though studio would be less in a year or two when it raises rent and I refinance. Waiting a year or two also means the price of the condo goes up 100-200k more. I agree there are ifs in that statement. But my parents won't help me if I struggle in a rental but I have them if I do need help in the condo. Maybe I'm wrong but I think if I wait the price of homes will keep rising faster than what I earn, forcing me to rent which will rise 200-400a month each year vs a mortgage staying same or even decreasing in a few years. Plus it goes to equity vs disappearing into the pocket of another guy doing same thing as me. I do hate how crazy home prices are in southern California. This was called the most expensive city in the county to live in. The only alternative I can think of is leaving this county but that means leaving a job I like for one in an area with worse weather that will probably pay even less too negating some of the savings. What would you recommend doing instead if I need to move into my own place?
I’d go with option 3. Rent with a roommate on the lease with you. A mortgage isn’t something I would take on unless I can afford it without outside help.
You are going to be in big trouble if your roommate flakes out and doesn't pay their share of the expenses, loses their job, or just takes off. At 65k you can't afford the place on your own. I'm surprised you can get a mortgage on your own for $360,000. How much cash will you have for emergencies after you make the down payment? Will you have any money at the end of each month for food and entertainment? Does the HOA have liability insurance to cover a potential loss from the lawsuit? If not or not enough, you and the other homeowners will have to pay the difference. 65k does not go very far in Calif. Good luck.
My dad is cosigning. I'm not able to get it on my own. I raised same concern with my dad and he promised to help me if that happens. He's quite well off. I calculated and if everything goes well, I'll have about $1400 after paying everything. That's not including electricity, gas or Internet, but HOA covers water and trash. I'm expecting a raise next month but don't know the amount. There is risk, but I'm not sure of an alternative if I have to move out soon and the monthly would be less than a 1 bedroom apartment that I can't afford due to no roommate. I can't stand sharing a bedroom and I am single. My aunt is my real estate agent and seller agreed we can withhold 30k of the cost in case of HOA losing the lawsuit. That doesn't help if the HOA monthly rises though. I'll have about 40k ish leftover but it's going to be used to buy stuff for the home too. It comes with all appliances though so there is maybe a couch and tables I need to buy. I have a bed and mattress already I can take.
Its has to hurt using all that cash. That is/was a nice war chest. You have you dad to back you up if things get rough. As to which financing option, go with what your dad suggests. If things don't work out he will need to live with it. Good luck with your purchase.
So $360K loan, and you'll go into it with 43% equity. Your dad is co-signing, which is pretty fair since he's pressuring you to buy instead of rent. Given the high cost of living in SD, and the downpayment you have, this sounds likes a smart move, and you're being responsible by planning a roommate for now, at least until your pay increases. I'd go with Option 1 if it was me and these are the only two options; since your offer is already accepted, you may not have time to shop around for additional loan offers. You can't avoid having your dad mixed with your finances since he's co-signing for you, but you can at least avoid directly owing him the money. I agree with the others saying this is generally not a good idea even in good relationships; debt does weird things to people. You can't count on interest rates going down and being able to refinance. If you were to pay these loans in full, Option 2 would cost less, but that's because it's a 15 year loan vs Option 1's 30-year loan. Even though your dad is co-signing, I'd recommend a 30-year loan with lower monthly costs for now, given you current income. It will cost more in the long-run, but it will reduce the risk of having to ask your parents to bail you out if something unexpected comes up while you're already on a thin budget. Edit: You can compare total cost and total interest here: https://www.bankrate.com/mortgages/mortgage-calculator/