Hello! I recently broke up with my partner and moved back into my parents house. We had been saving to buy a house together and I have about 20k saved. My credit score is just about 700 now. I still owe about 10k in student loans, paid about 50k off the past 6 years. I live in a very expensive state and any house near where I live is at least 300-400k. Places that are two hours away are significantly cheaper around 100-200k. I don’t have a car or or have anything in my name. I’m hopeful that if I keep saving I can buy a house/condo in a year or two. Is this realistic? I make 34,000 a year as a teacher. Do I need a new career? Thanks!
> We had been saving to buy a house together
Folks, this is why we advocate for not buying large value things with folks you are not married to.
> Is this realistic? I make 34,000 a year as a teacher.
Possibly. But the 34K income is going to be the severely limiting point.
Debt to Income ratio is king.
Your debt small, but it is high in proportion to your income.
And your income is so incredibly small to be thinking about a 300-400K house.
You spend the next 5 or so years working to increase income as much as possible. You can only save so much of a $35k income.
You can afford a $100k home while you’re making $34k, but anything meaningfully more than that is going to be a financial stretch.
why do you want a house/condo alone?
is renting not cheaper?
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I mean if I were you making 34k a year id either be looking for a new career or checking what my salary is likely to be in my current career (ie does it increase with experience and to what level).