26 Year Old Looking to move out

[wincrasher]

The limit for mortgage approval is 31% of income, even with 20% down - so at 37% the poster would not be approved.

I'd say that if you are going to rent, go with the roomate situation. If you are going to buy, you may want to get a roomate, but don't do that as a way to stretch your income to qualify for a mortgage - too risky.

You are an excellent saver. But if you haven't lived on your own yet, I'd strongly suggest you get an apt and a roomate and try out that lifestyle. Get the experience of living on your own first before you make a huge commitment to a mortgage.

[lovcom]

The limit for mortgage approval is 31% of income, even with 20% down - so at 37% the poster would not be approved.

I'd say that if you are going to rent, go with the roomate situation. If you are going to buy, you may want to get a roomate, but don't do that as a way to stretch your income to qualify for a mortgage - too risky.

You are an excellent saver. But if you haven't lived on your own yet, I'd strongly suggest you get an apt and a roomate and try out that lifestyle. Get the experience of living on your own first before you make a huge commitment to a mortgage.

Try out the lifestyle?

That is funny!

He should have no choice but to be on his own....it's part of growing up.

He should buy or rent, but to stay with mommy and daddy at 26, and having such a huge savings and good paying job is not a good thing at all.

Time to cut the "ambilical cord" from the parents...and what quality person of the opposite sex would respect such a person? Staying at home so long will prevent most quality suiters from being interested.

[amarowsky]

I would also say if your savings are that solid and you have a steady job that you know you will be around for a while then go for it. But I'm not sure of your area, but have you considered looking for a Foreclosed home?
I live in metro Detroit so pretty much the ONLY way to buy a home now is though Foreclosure. I can get one around here at about 40-70% of the original market value.

If you can't find foreclosed, aim for a good house in the lower end of your 250-300 range. And definitely look for some roommates to offset the income to mortgage margin, and have them pay for part of your house. My one friend has 4 roommates right now, it's kind of a party house, but the kid is getting his Whole mortgage basically paid for him.