Isn’t it funny how you’ll learn about something—a trend, a song, an economic concept—and then suddenly you’ll see it everywhere, as if that blind spot was finally removed and your vision is clear.
I feel that way about this Home Economics, which is a wonderful read for many reasons, but there’s one particular detail that really caught my attention. Today’s writer was able to buy her house in Las Vegas with no down payment and no private mortgage insurance. When we chatted on the phone, she laughed and said that she felt like she had scammed the bank, and one day they were going to show up and demand a down payment.
I had never heard of a financial institution giving someone a mortgage with 0% down and no PMI. But then, following my panel at SXSW, I spoke with a woman whose daughter is a real estate agent who has built a very successful business in Texas specifically by helping women work with lenders that don’t require down payments or PMI. “What a coincidence,” I told the woman. “I just had a call with someone who was able to take advantage of one of those types of home loans, and it was a game changer for her!” (Side note: If you are that mother or daughter, will you please reach out! I’d love to hear more about the work you do.)
As I wrote in last Friday’s weekly roundup, homeownership is a favorite target of personal finance influencers who like to extoll on all the challenges of owning a home and none of the benefits. But I think there’s one big thing that gets lost in those social media rants, and that’s the emotional satisfaction of having a place of your own. “I love knowing that it is mine, and no one can take it from me,” says today’s Home Ec writer.
There are a lot of assistance programs out there for potential homebuyers—and my guess is we’ll see an increase in them as the U.S. continues to struggle with housing affordability. But you do have to do the work to find one, and you may have to jump through a few more hoops to make homeownership a reality than you would with a 20% down payment in the bank and sterling credit. If homeownership is your American dream, it can be worth the effort. And if it’s not—that’s totally cool, too!
We’re always striving to tell all kinds of money stories at The Purse. Amazingly, this is our 49th edition of Home Economics. Want to share your story? You can fill out the form here.
Now on to today’s entry!
Age: 38
Location: Las Vegas, Nevada
Relationship status: Married
Age of partner: 43
About me: I’m an attorney at a legal services nonprofit. I’ve been working here for the majority of my career and can’t really see myself doing something different. I am queer and married, and my partner just finished their masters in school counseling this year. Unfortunately, their graduation coincided with budget cuts in the schools, so they are currently working as a substitute teacher. We don’t have any human children, but we do have an incredibly spoiled cat.
Income:
- Your job title/salary: Lead attorney, $103,000. I get a raise annually that is always the same amount and is essentially a cost-of-living adjustment.
- Partner’s job title/salary: Substitute teacher, school assignments range from $110 to $150 per day. They just started a long-term substitute position that will pay $130 a day and runs through the end of the school year. They also have a retail job that pays $14.21 an hour, but now that they’ve got a long-term sub role, they’re not taking shifts.
- Your monthly take-home pay (paycheck amount after taxes and other deductions): $6,550. I get paid twice a month. Occasionally, I get a little more on one paycheck due to mileage or another reimbursement, but since taking on a supervisory role, I travel less frequently.
- Partner’s monthly take-home pay (paycheck amount after taxes and other deductions): Varies significantly depending on the time of year but averages to about $1,500 a month.
- Total monthly income: $8,050
