We are a family of 3 living in our first home (since 2001). It's 960 square feet with a 150 square feet sunroom. It was built in 1969 and it's requiring more and more maintenance. We found a new housing development in a rural area (15 mins from where we live now). We can get a rural development direct loan from the government and get subsidized interest as long as our income stays under about $43,000 a year. We'd be paying about 2.9% interest on a $141,000 mortgage. The payment with insurance and everything will be around $745 and we pay $705 for our house now.
The thing is, if our income does go over $43,000 we'll have to pay the normal interest rate determined at closing. The payment would be about $970 a month then.
We bring home about $3500 a month gross ($3160 net). $250 a month is not counted as income because it's a payment to assist with therapies and recreation for kids with autism spectrum disorders and isn't taxed or counted as income when applying for government programs.
Although we're already close to the income maximum, families can provide a monthly budget at the yearly income review and money for certain things (like medical expenses) can be deducted from your income in determining continued eligibility for the subsidized interest rate. I'm disabled with Medicare and with premiums and copays, we pay about $800 a month for medical expenses for our family. That should help us continue to qualify for the program.
Right now we have no debt except the house (we owe about $70,000 on a $90,000 house). But our cars are 8 and 9 years old and both have a few issues. My husband has a work vehicle, but if our cars break down for good, we'd have a car payment again.
So do you think this house is a good decision for us or do you think we'd be taking on too much?
The thing is, if our income does go over $43,000 we'll have to pay the normal interest rate determined at closing. The payment would be about $970 a month then.
We bring home about $3500 a month gross ($3160 net). $250 a month is not counted as income because it's a payment to assist with therapies and recreation for kids with autism spectrum disorders and isn't taxed or counted as income when applying for government programs.
Although we're already close to the income maximum, families can provide a monthly budget at the yearly income review and money for certain things (like medical expenses) can be deducted from your income in determining continued eligibility for the subsidized interest rate. I'm disabled with Medicare and with premiums and copays, we pay about $800 a month for medical expenses for our family. That should help us continue to qualify for the program.
Right now we have no debt except the house (we owe about $70,000 on a $90,000 house). But our cars are 8 and 9 years old and both have a few issues. My husband has a work vehicle, but if our cars break down for good, we'd have a car payment again.
So do you think this house is a good decision for us or do you think we'd be taking on too much?
Personally, I'm okay replacing a 20-30yo roof or a 15yo water heater at the end of their lifespans, but when those things are under 4-5yo? That's just lame.
