The dollar is making a comback this week vs. the euro and asian currencies, oil is going down. Good stuff...

The stuff that is currently really bad in our economy is very localized and has been since this latest hysteria took hold. Real estate/home values suck in Florida, Las Vegas, Michigan, Phoenix - all the places that saw homes triple in value in 3 years. Most of the rest of the nation saw a leveling-off of appreciation - that's it. The stock market is down about 12% for the year so far. As was mentioned, the underlying health of the actual companies is quite good with the exception of the financial companies which thoroughly deserve to get kicked in the Jimmy anyway. Even then, the financials may have hit bottom too.

Stocks are cheap - it's time to buy.
Homes are cheap and mortgage rates are still low - it may be time to get a bargain.

See folks, this is not the time to jump out and wring your hands. That's what saps do. Us smart people realize that eggs are on sale and it's a real good time to buy eggs. When the stock market recovers, it recovers big and it recovers fast and no one can tell you when that's going to happen, so you'd better stay invested.

We also understood that when everyone had a little stiffy for real estate ("can't lose; always increases in value; they aren't makin' any more dirt") they were about to take a bath and we let them drive over the cliff without us. You see, things don't triple in price in 2 or 3 years without falling back to normal. 'Cuz we're smart like that.

But yes, things are looking up. They're looking up from a spot that's nowhere near as bad as it was painted to be, but I'll take it.

not to take it off topic but i have a question for dorkfish. i am looking at buying a 4plex the mortgage guy says i can usda loan on it for 100% cause i can do 1st time home buyer. does that soud write?

It may or may not be right, but that doesn't change the fact that it's a really, really, really, bad idea. Really bad. Run. Run away.

why is it a bad idea? would i be better off just getting a house instead?

I am hearing some good whispers

All I hear are thunder claps & lightening..

why is it a bad idea? would i be better off just getting a house instead?

100% financing of any type of property is a bad idea. Buying an investment property as a first time purchase is a bad idea.

If you are out of debt; have 3-6 months worth of living expenses in an emergency fund; and can put 20% down and finance the rest on a 15 year fixed rate mortgage with a payment no more than 25% of your takehome pay - then you're ready to buy a house.

Done this way, the house will certainly become a blessing to you. Buying a house leveraged up to your eyeballs with no money in the bank and stretching to make the payments is what got all these poor slobs into foreclosure. The surest way to avoid going where they went is to avoid doing what they did.

If you are out of debt; have 3-6 months worth of living expenses in an emergency fund; and can put 20% down and finance the rest on a 15 year fixed rate mortgage with a payment no more than 25% of your takehome pay - then you're ready to buy a house.

Living in the Seattle area, I'd think that trying to fulfill your recommendations would require enormous piles of cash laying around as you work towards a house. Do you still see these criteria as valid in more expensive markets like Seattle, San Francisco, New York, etc? Here I'm looking at house prices in the $400k range (maybe I'm holding my standards too high?), and I have been thinking something like the following might be more reasonable for me:

- No debt
- 3-6 month emergency fund
- 10% down
- 30 year fixed at no more than 35% of gross pay

Am I off base in my thinking here? And if so, is it reasonable to continue paying $1500/mo rent while I wait for everything else to fall in line?

By the way, I'm young and single with no dependents, does this play in at all to the 25% net (19% gross in my case) vs 35% gross issue?