Well, $10,000 is a pretty small down on a half million dollar house, and with a $150,000 annual salary, my first question is "what other debts do you have?"
This is compounded by the problem that this size of loan is considered a "jumbo" loan, and so the interest rates are higher, and the approval criteria are stricter.
Two things that you should consider.
1. Wait. While the housing market will turn around, and anyone that tells you they can predict exactly when is fooling themselves (or you, or both), at the salary level you've achieved, doubling or even tripling your down payment shouldn't take long.
2. Look for a home that will not require a "jumbo" loan. While some areas are higher, for most of the country that limit is currently about $417,000.
My advice is to do both. With your current salary, if you can't save at least $2500 a month for six months, you probably cannot handle house payments over $3000 a month.
$25,000 gives you over 5% down, which helps, and in most places you can buy a really nice place for $440,000. (If you happen to live someplace like Santa Barbara, where one room condos cost more than that, then you need to talk to a local agent.
And that's actually pretty good advice no matter where you live. Get your own agent, ask about his or her qualifications and get some references. DON'T just take whatever agent walks up and says "hi!"
Realtor, Accredited Buyer Representative (ABR), Internet Sales Professional (e-PRO).
Member, Real Estate Buyers Agent Council.
· 1 decade ago