Future Plans

I started worrying again early this morning that we'll have to move into Steve's parents house if I chose not to work after the baby comes. The baby is due in March, in 14 weeks, and I feel that it's extremely important for me to fulfill the responsibility of raising my own child and not give her up to daycare.

So, whenever I start worrying too much about finances, I start doing research and create a survival plan. Perhaps we could buy a 3-bedroom house and have mortgage payments that are less than the rent for our one-bedroom apartment. We can be eligible to receive government assistance through the programs:
Prince George's County's Down payment on Your Dream which basically provides 3.5% of the home value if the home is within 5 miles of work or 7% if the home is in one of the "trouble" zip codes.
Federal Housing Tax Credit which gives the lesser of 10% or $8000 in a tax return.

So this is my latest survival plan:

1. Continue saving up $20,000. Accomplished by February.

If Steve never finds a new/better job by February:

2. Contact a "Down payment on Your Dream" participating lender and get pre-approved
for a 15-year fixed-rate mortgage for a $100,000 house with 20% down-payment.

3. Attending a HUD housing counseling course.

4. Start searching for vacant foreclosed homes within 5 miles of Adelphi, where Steve works, with 3+ bedrooms that are under $100,000. It appears that many of these homes are in Hyattsville. Online listings.

5. Work with a Real Estate Agent to place a contract on a property for which I can be pre-approved.

6. Return to lender with the sale contract and apply for mortgage and "Down payment on Your Dream" loan.

7. Claim the purchase on our tax return forms before April so that we can receive the $8000 first-time home buyer federal tax credit. Use the tax credit to repair/restore the home.

8. Upgrade to a better house/neighborhood in 5 years when Steve makes more money and repay the "Dream" loan. If we space our children 2 years apart then we'll have our 4th (and final?) child in 6 years when our first one is 6 years old. I think that I want to be in a better area before the oldest kid enters 5th grade or so, before middle school. But, if the neighborhood and schools are safe and good enough already then we could stay in the house forever and save money up for college and missions and so forth.

If Steve gets a new/better job before February:

Depending on his new pay, we may be able to afford something up to $150,000 and do only a 13% down payment. If PG's county is within 5 miles of new job, try to get the "Down payment on Your Dream" loan. If not, then research for other local down payment/closing cost assistance. Still get pre-approved for a mortgage, find a home, place a contract, apply for the mortgage, and claim the purchase on the federal tax return forms.


Other news: We are probably switching health insurance to Steve's work's, meaning that we will no longer be with Kaiser starting the beginning of January. We will have Oxford/USA Health. So once we get the materials next year, we'll chose a different obstetrician and perhaps change my birthing hospital/center.