A 21-year-old Pittsburgh man and his girlfriend aim to build a $700,000 home on variable incomes, with a combined monthly income of $10,000. Co-hosts of The Ramsey Show caution against becoming “house poor” and suggest waiting until financial stability is more secure. Pittsburgh is the lowest-priced major housing market in the U.S. (1)

Buying a $700,000 home with a $260,000 down payment could lead to monthly mortgage payments of $2,800 – $3,800. Joseph and his girlfriend face potential financial strain due to inconsistent incomes. Lenders consider income, debt, credit history, and down payment when determining loan eligibility. (2)

To avoid becoming house poor, monthly housing costs should stay under 30% of gross income. Joseph’s plan to start a family would add to expenses, and being house poor could delay those plans. Co-hosts recommend building an emergency fund, growing income, and starting with a more modest home. (3)

Instead of a $700,000 home, the couple should consider a smaller mortgage they can pay off quickly before upgrading. Taking time to build wealth and financial stability is advised over rushing into a luxury lifestyle. Patience in financial matters is seen as a healthy approach. (4)

Read more at Yahoo Finance: Unmarried Pittsburgh couple wants to build a $700K home. The Ramsey Show warns they’re fast-tracking being ‘house poor’