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Vincent Said:

Do you think we can afford to buy a first home?

We Answered:

Hopefully you are looking at the answers to the same question you posted previously...

http://answers.yahoo.com/question/index;…

Making $30k after taxes he should definitely be able to afford this by himself, and if you can afford to pitch in your own weight or a little more, you shouldn't have any problems at all.

I would consider doing a fixed rate 30yr FHA loan and only putting 3.5% on as downpayment. The issue there is that if he puts down 20% (13,000) and pays closing fees, another couple thousand, you end up with much less in liquid assets. It could be worse, but if it were me, personally, I would prefer to go with a lower downpayment amount. Even if your interest rate ends up a little higher, and you pay some mortgage insurance, you gain the benefit of having a nice big security blanket - if you lose your jobs, you have plenty of time to live on your savings while you find another, and don't need to worry about foreclosure being on you so quickly. It also leaves you some breathing room for making renovations, or fixing things that you may not have thought of needing to fix.

The reason I say 30 yr loan is because you can always pay extra directly to principle (unless it's otherwise stated on your loan agreement) to shorten the length of your loan. However, if you go for a 15 yr loan, and find yourself strapped for cash, you can't send the bank less, to stretch your loan out longer.

That's just peace of mind that I would prefer to have, and something you should both think about. Either way, I'd say you can definitely afford it, it's just about how much breathing room you want to give yourself.

Tamara Said:

Is it possible to get a credit at closing to quiet title?

We Answered:

Are you taking a mortgage out? If so, you need to call the mortgage company and ask THEM what they need done. Typically, a mortgage will NOT go through if there's a problem with title like this.

Wesley Said:

Gross estate tax & life insurance taxed? SGLI Military ?

We Answered:

You do not have to pay taxes on the life insurance money when you receive the benefits from the insurance company. You also don't have to pay any taxes when you spend it unless you placed it in an IRA or some kind of retirement account.

You will have to pay taxes on the interest income you earn each year unless you place it in some kind of tax deferred investment like an IRA or 529 college savings plan.

Manuel Said:

Anybody looking for work?

We Answered:

Theres way to much sexual harassment in that organization for me to contemplate working there. Plus the glass ceiling for women at the executive level will be there downfall

Marian Said:

Can we afford this house?

We Answered:

Making $30k after taxes he should definitely be able to afford this by himself, and if you can afford to pitch in your own weight or a little more, you shouldn't have any problems at all.

I would consider doing a fixed rate 30yr FHA loan and only putting 3.5% on as downpayment. The issue there is that if he puts down 20% (13,000) and pays closing fees, another couple thousand, you end up with much less in liquid assets. It could be worse, but if it were me, personally, I would prefer to go with a lower downpayment amount. Even if your interest rate ends up a little higher, and you pay some mortgage insurance, you gain the benefit of having a nice big security blanket - if you lose your jobs, you have plenty of time to live on your savings while you find another, and don't need to worry about foreclosure being on you so quickly. It also leaves you some breathing room for making renovations, or fixing things that you may not have thought of needing to fix.

The reason I say 30 yr loan is because you can always pay extra directly to principle (unless it's otherwise stated on your loan agreement) to shorten the length of your loan. However, if you go for a 15 yr loan, and find yourself strapped for cash, you can't send the bank less, to stretch your loan out longer.

That's just peace of mind that I would prefer to have, and something you should both think about. Either way, I'd say you can definitely afford it, it's just about how much breathing room you want to give yourself.