I've been in a pretty crappy financial situation. I've described my situation in detail in the past and I am greatful for all the great advice I have received here.
Since asking that question 8 months ago, my situation has changed a bit. I paid down some of the credit card debt (down to $30k). I saved a bit of money ($20k). I paid off IRS completely. The 401k is up to $17.5k. My divorce proceedings show no signs of ending (i owe the lawyer $10k).
I decided to have a look at my credit report, found a ton of stuff that was not mine, disputed it and to my utter astonishment, TransUnion listed my score as 720, despite having a foreclosure.
I've started looking for a bigger place to rent (my kids are getting older and need their own bedrooms), and my uncle suggested buying a house instead with an FHA loan that requires 3% down.
The idea of having a place of my own is very appealing to me. However, I am a bit skittish about the cost. The place that I was going to rent would cost about $2k a month. If I bought a place for about $450k (average price for a 3bd place), I'd be likely paying upwards to $3k a month. I think I can do it, but it would definitely be real tight.
There are possibly a couple of things coming into the picture that might make things easier for me. My ex got a job, so my alimony will go down hopefully. Also the kids are with me most of the time, so my child support should also go down. My older kid is gonna go to public school, so the private school tuition will go down to $500 from $1000. Hopefully, my credit card debt will end within 2 years and I'll be able to put that payment ($1382) towards the house as well.
Thoughts? Is this a good idea, bad idea? Am I stretching myself too thin?
EDIT: I got pre-approved (subject to underwriter's final approval) for $389k FHA loan with 3.5% down. There is some real estate here for that, but it definetely limits my options.