No, really, I’m not jealous

My brother, “Six Figures”, is buying his first home, and it closes on Friday. By waiting a year at the advice of me and the aunt who would have been my guarantor, he got a wide 4-story new-build row house with a private parking pen in central Baltimore instead of a narrow 3-story old one with street parking. And he locked in his 30-year FHA mortgage at 4.35%!!! 

My best friend asked me how I felt about my 3-years-younger brother buying a place before I did (birth order and the trappings of success are a big deal in her family). Well, because I’ve chosen to live in wayyy overpriced Manhattan  and I’m self-employed, it’s never been on my radar. I started with “I’m happy that someone I love is able to take advantage of this opportunity of a lifetime” and finished with “If my business continues to tank, I’ll have a very nice place to couchsurf”. 

The only thing I find a bit disturbing about all this:  he only had to stump up a 3% deposit. I thought we’d done away with that foolishness?? He’s literally a few bucks from being “upside down” on it! He also has no plans to use any part of his enormous bonus (due in 2 months, when the sale of his company is finalized) towards the principle. That makes me so sad, because I know none of it will be saved or invested.

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4 Responses

  1. Yeah FHA loans only require 3% down. Only the 0 down loans have disappeared, low down programs still exist but you do need good credit to get in. The standards have been raised, that is the sad part. I put 5% down, but seeing as prices are down ~40% since then even a big downpayment would not have helped me. I hope your brother enjoys his new home.

  2. Well, like you said, great for your brother! And like you said, too bad he won’t use part of his bonus to pay down that mortgage. All you can do is offer the advice, you can’t make him take it! Maybe he will change his mind by the time the bonus actually hits his paycheck, maybe?

  3. I wouldn’t be jealous if he only had to put up 3%.

    I’d rather have the cash to front 20% instead of being and living on the edge (hey, are you sure you aren’t my sister? Because seriously, our brothers sound alike)

    LOL

    BF wants to pay our future house in full, one cheque, cash. *rolls eyes* I told him he was mad if he thought I had $70k kicking around.

  4. I wouldn’t be jealous if he only had to put up 3%.

    I’d rather have the cash to front 20% instead of being and living on the edge (hey, are you sure you aren’t my sister? Because seriously, our brothers sound alike)

    LOL

    BF wants to pay our future house in full, one cheque, cash. *rolls eyes* I told him he was mad if he thought I had $100k kicking around.

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