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.
I would agree that it doesn't seem like the right time financially to buy a home for him. If he doesn't save very much, would he even have the 3.5% required for an FHA loan? There are also other potential costs to factor in such as a home inspection, closing costs, and moving costs. He may also have to buy appliances as not all places have a refrigerator or washer and dryer. These are some of the costs people don't necessarily think of when they start shopping for a house.
It would probably be best for them to wait until she finishes school and finds a job. Once that happens, it will improve their debt to income ratio which will allow them to save more for a house.