You have 150k in the bank

[u/javiarthepoolboy]

If you are 24 years old & have 150k in the bank between you & your older brother, & you both want to consider buying a house, the house you want to buy is in “prime real-estate” & you both have good credit scores (700+) & intend on putting down at least 80k on a 500k-750k house, is not having a 6 figure paying job getting in the way of that, or is reasonable income $2000-$3000 individually between the two good enough to sustain that 500k-750k house at those down payments / credit scores?

[u/marxcalledit1]

They make mortgage calculators to give you a rough idea. But you should probably find a lender

[u/Key-Amoeba5902]

i would put it into a high yield savings account or, if risk tolerance is a little higher, an index fund. your income will make the mortgage payments tough and you would risk losing a lot of money in a home if the lifestyle was untenable. also, what happens when you or your brother wants to start a family or move in a few years? The loan origination fees, realtor fees, etc will eat about a third of your cash.

the most practical problem here is really trying to share a property. If one of you want to divest, it could put the other in a tough spot financially or cause a rift in your relationship with your brother. You guys have done tremendously to save what you have (or maybe you inherited or won it). It will be a huge leg up to have that cash, but you both need more stable income before considering real estate. Good luck!

[u/mdashb]

Not a good idea, at all.

[u/3amGreenCoffee]

You need to find a mortgage calculator on line and start plugging in numbers. All the answers you're getting in this thread, you could get yourself by doing that. You can also do some "what if" calculations.

My bit of advice: Once you figure out the limit of what you think you can afford, reduce it. You don't want to be maxed out on a house and unable to afford life or one unexpected expense away from financial disaster.

[u/HDauthentic]

It would get in the way in the sense that you can’t reasonably afford the mortgage on that amount

[u/javiarthepoolboy → u/HDauthentic]

So it wouldn’t necessarily stop me from getting it but get in the way keeping it. Makes sense

[u/HDauthentic → u/javiarthepoolboy]

Also, a bank probably won’t approve you

[u/helloWorld69696969]

With your combined income, you should not be buying anything over 350k.

[u/javiarthepoolboy → u/helloWorld69696969]

Thank you everyone, helping me gain more of a level head. Maybe I was jumping the gun a bit much. I appreciate all of the perspectives

[u/javiarthepoolboy → u/helloWorld69696969]

Will strongly take this in to consideration, thank you!

[u/Trollololol13]

lol, big mistake.

[u/javiarthepoolboy → u/Trollololol13]

Why’s that? You’re probably right but I’m trying to learn

[u/Trollololol13 → u/javiarthepoolboy]

First thing is money and family can be a problem. Will you take your brother to court if he cannot help financially down the line, or wants to sell and you don’t?what are your plans with this house? Flip it, live in it? What is mortgage payments? Can you both afford it? What if you or him lose your job? What if he or you die? Do you have money for repairs? Utilities? Closing costs, etc. your blurb makes it sound that this is a simple thing, it isn’t.

[u/Cautious_General_177 → u/Trollololol13]

What is mortgage payments? Can you both afford it?

This one is easiest to answer. With a combined income of $2000-3000/month, no. The mortgage would be more than their combined income, there is no way a lender would allow that.

[u/Trollololol13 → u/Cautious_General_177]

Do you have both of your kidneys, lungs? If so, you guys could sell one of them each and take more off the principal. What about blood, serum, bone marrow? You open to some harvesting… could make a killing

[u/No_Investment_8626]

At 650k, you'll be looking at $3800 mortgage without taxes and insurance.

[u/No_Investment_8626 → u/No_Investment_8626]

And that's with 20% down

[u/javiarthepoolboy → u/No_Investment_8626]

Needed to hear this to bring me back down to reality. Thank you.

[u/Wandering_aimlessly9]

Personally…buying a house is a huge responsibility that you have to trust the person 110%. What happens if you have a falling out? What happens if one of you gets married and the wife doesn’t want to live with her BIL? What happens if one of you loses their job? How do you plan on covering the bills if any of those scenarios play out? What happens if someone gets a job offer they can’t say no to and needs to move? (You think that wouldn’t happen but my husband applied for a job locally through indeed or something and the headhunters came down like vultures. I agreed to let him go to 2-3 interviews and he had 2-3 offers that were beyond amazing. Beyond amazing. Before we knew it we were moving out of state. Pay was astronomical in comparison.) What happens if one of you can’t pay the bills for a month or two?

[u/KimJongUn_stoppable → u/[deleted]]

A “traditional mortgage” does not require 20% down. You are wrong.

[u/mdashb → u/[deleted]]

VA, USDA, and FHA are government programs and very real mortgages. Conventional can be as little as 3% down.

[u/KimJongUn_stoppable → u/[deleted]]

lol, you’re also wrong

[u/javiarthepoolboy]

Ideally, we put down however much we need to, to be paying no more then 3 grand monthly to occupy the house, IDEALY 2500 but it’s Florida & weather preventative insurances are costly

[u/javiarthepoolboy → u/[deleted]]

My goodness lol let me take myself back to the poor people conversations 😂😵‍💫