How is it possible to save for a house?
I’m an engineer, I make $63k per year. I’m 26 and I recently paid off my car and have no student loan debt, or debt of any kind to anyone. I’m still a few thousand off from having my $10k emergency fund set up, and I’m trying to follow Dave Ramsey’s baby steps.
I would like to buy a house but I just don’t see how it is possible. If I can manage to save $500 per month, which would be about 10% of my income, that’s only $6k a year in savings. If i’m going by good advice (Dave Ramsey) to get a house that has a payment of 25% of your income on a 15 year mortgage, then I can only afford about a $200k house, and I need at least $40k down payment to avoid PMI. That would take me about 7 years to save up enough down payment. This just seems completely unrealistic. Am I missing something other than you just have to put less money down and eat the PMI?