Genuinely curious, because I'm in the same boat:

Isn't this what got a lot of people (and the market) in trouble in the first place though? Unrealistic mortgage deals for people without much upfront cash buying way beyond their means as well.

Ignoring the last part (I'd figure my max monthly payment beforehand), can you still get a legitimate and affordable mortgage without having much cash to initially go into the process with? I am under the impression that aside from the FHA 3-5% setup, you're not gonna see a respectable loan without 15-20% down and a few grand for closing.

I agree with the buy now stuff, we were broke also but did what is called seller's assist. the seller pays all closing cost and adds that amount to the cost of the house and you pay thru the mortgage....the area I like the most is within the triangle you get if you draw a line from Broad & Elsworth down Broad to Passyunk then down Passyunk to Elsworth then west to Broad

TorgoSev,

Agreed, the whole mortgage crisis happened, in large part, due to creative mortgages where people took high risk, variable interest loans (and other destructive loans), banking on continuity of the incredible increase in housing costs. And the more that banks were willing to take risks, the more buyers were coming out of the woodwork. And then, of course, the balloon popped.

I saw a perfect example of this when we lived outside D.C., when a couple we knew was paying through the nose on their interest only mortgage. Then, when the market flattened, and they were finally beginning to pay principal, they were totally screwed, and not even able to sell to get out of trouble.

I'm not advocating that. Here's what I'm saying: not a lot of people can afford to put 20% down anymore, particularly first time homebuyers. However, you CAN get either an 80% mortgage with some percentage down and sellers' assist, or PMI, or another safe device to get you into ownership. With these rates, it's worth it. And with this market, you're more willing to find a seller who will work with you to get you into the house. In our case, we made a full-price offer, with the seller providing 6% assist and closing costs, plus a 1-year home warranty. She was happy because in the end, she still got a good price for her place and was able to sell; we were happy because we still got a good place at a very reasonable price and didn't have to fork over tons of cash at the outset. Considering what we were paying in rent, too, we now aren't really in a place that we're in over our head.

Sorry - forgot to mention: I also recommend looking anywhere along East Passayunk, and I really like our neighborhood just west of Broad. It's affordable, we can still walk to stuff, and it has tremendous upside. Not to mention the Taproom...

Yeah, we're really looking to move into the E. P`unk area as well.

Thanks for the info concerning the closing costs, Jeps. I think I've put "too good to be true" blinders on after the subprime business started blowing up, while trying to squirrel away some cash.

Guess it wouldn't hurt to have a realtor looking for seller's assist flags in the area for awhile and see what the "employee mortgage services" has to offer me currently.

About your question of what streets to avoid- it depends on what neighborhood its in .For example, take S 20th St, the 2400 block is in the nice, desirable Girard Estates area and just 7 blocks north on the 1700 block is ghetto Point Breeze. Some blocks on any given street are nice and others are total ghetto and downright dangerous

FYI - since you said you're looking to stay close to Broad St. for the subway . . . here are links to the civic associations that cover the areas you mentioned (except 16th & Mt. Vernon). They're good resources for finding out what's happening and what's planned.

Good luck.

East of Broad -

http://www.passyunksquare.org/

http://www.epcrossing.org/

http://lomophilly.wordpress.com/


West of Broad -

http://www.newboldsouthcivic.org/

http://www.newboldneighbors.org/

Hi, As previously posted you can get sellers assist to help with the closing costs. Also there are lenders giving grant money right now (yes grant money!) and even though you put less than 20% down they are eliminating the PMI.(private mortgage insurance) As long as you have good credit and a good job history (in the same field for quite a few years) now is a great time to buy a house. It just so happens that I am a real estate agent and I am giving a Home Buyers Happy Hour on Feb. 21st where I can answer all your questions. Even if you rent now the information will help you in your plan to buy in the next year.
You can reach me at margaret@solorealty.com