I mentioned yesterday how the market has me a little nervous about my previous home-buying plans (the 4th bullet). I have enough saved for a good downpayment (20% on a $180k home), there are a good number of properties available, and I’m excited to finally get out of my parents house. To go over a little history I don’t want to rent. I’d have to get into a long term agreement in most places in this city, and prices right now are just as much as I would be paying on my mortgage (if not more). I don’t want roommates….been there, done that, don’t want the drama.

I also want a place for the long term….at least 5 years (I’m not looking to “profit” from housing. I literally just want a place to live that I like since I plan on staying there as long as I can.)

The part I am nervous about is losing my job. I’m 24, single (as in un-married), and my parents (nor boyfriend) are in no position to help me financially if I should find myself unemployed. I have some savings, but if I use up all of my downpayment I’ll have about $5k left over. While my company seems to be in good shape, they’re still taking steps to develop their employees (and paying money to train us for new certifications), and we haven’t seen any layoffs. However nothing is forever, and I’m worried, as most people are, that things might get worse. The thing is that many other companies in my industry aren’t doing so great, so if I was to lose my job with this company, my chances on getting another equally paying job in the same industry aren’t so great either. Then again, I don’t think I’d have any as much of a problem picking up a lower paying job to keep my head above water until things straighten out.

I know that I need to keep saving before I feel 100% comfortable. One thing I was considering was forgetting about my goal to put down a 20% downpayment. With FHA loans they supposedly only require 2.25 or 5% down, and they’re supposedly still issuing those to some. Yes, I’d have to pay PMI, but how much is that? I think I’d rather pay a little bit more (well, depends on how “little”) and have that peace of mind. I’d keep saving until I can pay off that bit of money so that I’m under 80% financed. Does that sound like a good idea?

If you want numbers I was thinking of transferring $10k to my emergency fund, which would bring it to about $15k and my DP fund to $26k (which would roughly be a 15% downpayment on a $175k home). I’m estimating that my expenses would be close to $2000 (slightly over), so that would be close to 7 months in my emergency fund. I’d like 12, but I think its a start.

My “plan B” would be to rent out the 2nd room to bring in some money. While I dislike living with other people, desperate times could lead to desperate measures.

So, what do you think? Am I crazy to still be considering buying a house on my own? Or on the other hand is this the best thing I could do with prices and interest rates being low? I might not like what I hear, but I think I’m ready to hear it.

Ah, yes….and in order to test out the latest WordPress feature I’ve included a poll! Comment as usual, but feel free to submit your “vote”!

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