save for a down payment on a house

My goal is to save $23,000 in 2 years! I have not started a housing fund, but I will soon. I want to own my own home by the time I am 27!

We own a home in New Jersey, but will be relocating to California later this year. So we’re facing two problems:

1) the equity we had in our New Jersey home is likely gone now (we purchased in late 2004)

2) homes in California are very expensive

I know that once we move, we’ll be back to renting, likely for an extended period of time. However, I’d like to be able to purchase again in 5 or so years. To save up 20% for a California home is insane ($100,000???). But you’re never going to achieve something if you don’t set a goal, so I’ll go ahead and put it out there.

As of today we’ve got ~$12,000 in our emergency fund. I’m going to continue adding funds to the same account and watch it grow from there.

I’d like to have $30,000 (20% on a $150,000 house) in 2 years. I’m pretty sure this isn’t realistic, but it’s good to start applying actual numbers to my vague hope to own a house someday. I’m aiming a little high on the amount since there’s also other expenses associated with buying a house, and I’m not sure whether I’ll be buying in a more expensive or less expensive community. Plus, houses are relatively cheap now, but who knows what the housing market will be doing when I get around to buying.

Right now, I have $2,600 sitting in my dedicated house fund at ING. I haven’t done my budget for this year yet, so I might have some extra money sitting around in my bank account that I could throw at this. I’d like to be able to put $1000/month toward my house, but again, I’m not sure this is realistic. I’ll check in again once I crunch some numbers.

But hoping that will happen in early 2008!

With my job settled I have finally begun. I’m working out with my friend who is a lender what kind of mortgage I would be eligible for and I have set up some automatic transfers to my savings account in order to make this goal possible!

I was doing the same thing! But I recently found out there is a way to buy a house WITHOUT having to actually pay the down payment! you “pledge” the money instead. Not many people know about it, they just started it a couple years back. This will save a ton of money in rent. If anyone wants some more info, email me at ncpardue@yahoo.com
have a wonderful day! and happy house hunting :)

I have opened a money market account and have started putting away money. Im on my way to being a home owner!!!! Yippy!!!!

Big news. I managed to not only be preapproved for an RRSP line of credit with our c.u., but I also got the amount doubled. And, because it’s a line of credit, I don’t have to requalify every year.

We’re that much closer to the house. W00T!

Sitting on hold waiting to talk to the bank about rrsp options and such… this might take a while. But at least it’s February 1 and not February 21!

I have to pay off my debt and become a bit more financially independent first. Besides, until I finish grad school, affording a half-way decent place in NYC (unless I want to live where there is no subway) is going to take quite some time.