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Question By
missmazy

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On a fixed income of 14,000 should I buy a house?
Current rent is $530. Would a mortgage payment be lower?

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Top Contributor
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I would say no to both questions.

Owning a house is not you go into with a limited income.

You have maintenance that needs to be covered and you never know when the something might go wrong or be needed,  new roof, hot water tank, etc etc etc.  unless you have the cash saved to take care of the issue it will go unfixed when the work needs to be done.    When you Rent it is the landlord that has to take care of issue and cost.

Thats my view.

Top Contributor
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I would say no. In fact you should find a place that's less expensive. There's a home affordability calculator on this site you should look at. Your payment of $530 is 45% of your income at $1167 a month. That's too high. If you bought a house, you have maintenance as Howie mentioned, and you'll have to pay property taxes too, not to mention electricity, water, sewer, trash fees. Your debt to income ratio should ideally be no more than 36%. You're already over this. 

Top Contributor
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I would also say no. This also depends on where you live because the cost of living and property varies across each state. I have never heard of a mortgage payment less than $1200 for a single family home in California. Then again, I have friends who live in other states where it's $800.

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Definitely NO!!

In fact, I recommend you look into getting into Title 8 housing which is low-income subsidy that provides very livable housing at a low price.  This will allow you to live comfortably without a major strain on your finances.  I did that before and it was really to my benefit and it is decent housing.

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