Originally Posted by josephr25
What do I tell a coworker who really wants to buy a house (he's renting), but he really wants the FHA program? He says he and his wife don't save a lot (she doesn't work and is getting her masters; he pays for everything); he has a child, and is banking on the FHA loan? I showed him some of the articles posted before.
Well, let's think about it.
Do you think a guy who is barely able to save money, on a single income, should be purchasing a home with his wife still in school and with a small child? That's seems extremely risky, if not irresponsible IMO.
Your friend seems to be living above his means if he can't save money, or he's got tons of debt that is sucking up a lot of his take home pay. Either way, it's not a good situation to be in when making one of the biggest purchases of your life.
He should wait until his financial situation gets better, or rent somewhere cheaper so he can actually save money. One of the best things he can do in this economy is pay off debt. That will give you instance "returns".
I don't think it's the right time for him to buy a home.