conversation: User (YummiBears): "I am a 25yr old single man. I have to move out of my apartment this summer. I have read a lot about how purchasing a house is different than it used to be and I shouldn't expect my house to increase in value over the years. I also have read about the increase in house prices, which makes me tempted to buy as soon as I can.\n\nI don't see myself leaving this general area anytime soon. I pay 765 a month in rent and around 9-1000 total with utilities etc. i have 12k saved up. Should I pounce on a house as soon as possible? Do I lose a lot of money if I want to sell before I finish paying it off? What pros and cons am I not considering?"
  Self: "Real Estate has always been your best investment.\n\nThe problem during the housing crisis was the bubble; housing prices were artificially inflated by approving low credit buyers for houses they couldn't afford, by jacking up the interest rate and various scams (balloon notes!), which they inevitably defaulted on and it all came crashing down.\n\nYou can see those coming, though; things are more or less back to normal, just don't let anyone talk you into a variable rate or, god forbid, a balloon note.\n\nFHA is the first place to look; they finance first time homebuyers with low rates.\n\nI got out of my house right before the bubble burst; I came out with a tidy profit. Don't ask what happened to the buyers."
  User (YummiBears): "I'm new to all this. Do I contact FHA after I find a home or do I go through them to find one. Also what would happen if say, I move in 3 years and have not finished paying on my home? That's a concern because I don't know what my life will be like then as i'm currently a single guy. "
  othybear (othybear): "When I wanted to buy, I talked with a mortgage broker, and he showed me the options, which included FHA and conventional loans.  No need to talk to the FHA directly.\n\nIf you're thinking about moving in only a few years years, it's probably not a good idea for you to buy. Traditionally, it takes about 7-10 years in a place to reach the 'worth it' point on a house (i.e. costs of the mortgage, costs to sell the house, paying off enough principal in the the loan, initial investment going up in value). Otherwise, you're most likely better off renting.\n\nThe most typical mortgage is a 30 year mortgage. Most people move before the 30 years are up. When they want to move, they sell the house and use the proceeds from the sale to pay off the mortgage, and hopefully have some cash leftover to use as a down payment on a different house."
  