How much money would I have to make to qualify for a mortage of $200,000 with a FICO score bewteen 650-700? Currently making in the low $60K's
2006-06-26 08:33:10 · 13 answers · asked by Hippyghost 1 in Business & Finance ➔ Renting & Real Estate
if you are making that much money, I cant see any reason why you can't qualify for a $200K mortgage right this second.
2006-06-26 08:36:54 · answer #1 · answered by WC 7 · 1⤊ 0⤋
Decide on how much you want to spend, if you want to escrow the taxes and insurance. Say the taxes are 1200 a YR and insurance 800 a year (just an estimate, ok) That is 2,000 a year divided by 12 = 166.66 If you paid 1,000 a month now - (166.66) your P/I Principle and Interest would be 833.34. You mentioned a 200,000 loan, and yoiur credit score 650-700. YOu could get a 1 loan for the full amount, and if you go conforming you would have MI which is based on the 20 Percent equity over the 80 percent..You pay the mortgage down to 80 percent of the Loan amount and the MI drops off. I have some clients that add the MI into the rate - Some companys allow this with a add on to the rate of .25 (so instead of a 6.5 rate, you would have a 6.75 rate) This is an example - ok. If you plan on staying in the home 10 years or less you can do a interest only, since you will have value (equity)in your home when you sell it. Thus that makes the payments less - rates are still awsome so you will have no proplem getting a loan...But watch the DTI issues - Companys run 45 - 55 DTI - Add up all your payments that are on your credit report - auto, credit card(s) etc. Also on a Conforming A+ deal, all collections and judgemetns have to be paid off before close. You can even get a 6.88 rate on the sub-prime side, not have MI (There are alot of companys that will not charge you MI - but it may be in the rate - I know it can be confusing - work with someone you trust - someone (a broker), that will only pull your credit once, and use your credit to quailfy you for different loans and products. A broker will underwrite for many many companies (I underwrite for 150 company's as an example). Also if money is tight, have the sell help you with closing cost - or fine a For sale by owner - but do not hickle over the price of the home, if you are needing closing cost help Normally have them help with 3-5 percent if needed). Back to credit: A single lender (not a broker) has programs available, but they may not have the NO DOC Program etc...than you have to go elsewhere and that person pulls your credit. (see what I mean.) If you shop, your credit is pulled and that is considered a soft pull, for a 30 day period. Just like shopping for a auto, it is good for 30 days. If you apply for a credit card, that is considered a "hard" pull and it drags down your credit score. Try to find someone (broker) that will pull your credit one time, and submit your loan application to company's that will go off his credit report. By the way, a loan application is called a 1003, and they will issue you a GFE (Good Faith estimate, with in 3 days, that is per the RESPA laws, and the TIL (Truth in Lending). This will tell you the up-front closing cost (etc) associated with your loan. This is a estimate only - not the final - but it does help you figure things out. Some companies want you to escrow you taxes and insurance. Other's may not require it...Some companies add a .25 to the interest rate if you want to escrow waver...FHA loans have to escrow (at least they used to) Good Luck.
2006-06-26 10:46:52 · answer #2 · answered by W. E 5 · 1⤊ 0⤋
It all depends on much much outstanding debt that you have ....if you make 60 something and have no car payment, or credit cards that you are good. But if not then you have to deal with whats called the debt to income ratio. Which means if you make like 60 but then have a 500 a month car payment and credit cards that equal like another 500 you may not be able to do a convetional loan. But dont worry with your credit scores being good you can do whats called a no income no assest loan where you dont show any paper work at all they dont need anything. You just have to have a credit score of over 640 which you do. And do yourself a favor since you have good credit do not got to a mortgage broker. Go directly to a bank like commerce or Pnc, wells fargo, washington mutual because all the mortgage brokers do is find you a deal through these sames bank but they pick the one for you that pays them the most and rip people off all the time. But other then that you should be fine. Your credit is good and the banks will take you in a heartbeat. Good luck and happy house hunting
2006-06-26 08:45:13 · answer #3 · answered by Glittergirl 3 · 1⤊ 0⤋
Banks are looking at a ratio of your income called DTI or debt to income. This ratio is the total of all the monthly bills that appear on your credit report divided by the amount of your monthly income.
Lenders with the best rates are looking for your DTI to be no more than 45% however, some lender will allow up to 55%. Your best bet is to be prequalified ASAP.
With your credit score you do qualify for no income verification up to 100% of the purchase price. This option gives you flexibility and allows you to ALMOST make your own decision on how much you would like to spend on a monthly basis.
2006-06-26 08:48:51 · answer #4 · answered by James 1 · 1⤊ 0⤋
I may be able to assist you, I am a mortgage broker who works with over 100 lenders nationwide and offer several programs that will fit almost any situation.I specialize in Re-Fi's, Purchases, Home Equity Lines and Home Owners Insurance. Please feel free to contact me Jcorreahq@yahoo.com I will go through everything with you and answer any questions you may have about the process. This is at no obligation to you and if nothing else will educate you on how everything works and what you qualify for exactly! I look forward to hearing from you! ~Joseph
2006-06-26 14:14:42 · answer #5 · answered by jcorreahq 2 · 0⤊ 1⤋
You qualify based your generic info. Wether you be approved is another issue. With low debt and a continuous job or profession you would no trouble. Keep in mind taxes, insurance etc. If you are buying in Wisconsin, Minnesots, or FLorida I can help you as well as many other states. I can help you ask the right questions if is another state you need help in. More than happy to be a resource.
2006-06-26 10:23:51 · answer #6 · answered by unclejesse1 3 · 1⤊ 0⤋
No. Rule of thumb is lender's will lend you no more advantageous than 3x your income. on your case, about $100K. Even no longer even close. on your situation, your price will be $1700. After taxes you in all probability in uncomplicated phrases get about $2300 a month. Leaving you in uncomplicated phrases $600 a month for an additional rate you've in existence.
2016-11-15 07:08:41 · answer #7 · answered by ? 4 · 0⤊ 0⤋
It's not just your annual income.....it's the amount of your current debt as well.....car loan....monthly payment.....average credit card balance...those monthly payments.....etc.
30yr loan of $200,000 at 6.5% - $1,265 - doesn't include property taxes, insurance, PMI if you put less than 20% down....
Your FICO qualifies you for "A Paper" - meaning most favorable interest rates, no loan restrictions.....the best terms...
2006-06-26 08:44:13 · answer #8 · answered by Paula M 5 · 1⤊ 0⤋
You already qualify for the loan, in NY state. You can also go with a 'low-doc' loan program.
2006-06-26 08:42:07 · answer #9 · answered by ouzii o 1 · 1⤊ 0⤋
My dad sells morgates and i know that whatever you earn a year x 3 or 4 is the amout you can have as a morgate.
2006-06-26 08:36:57 · answer #10 · answered by Christian L 1 · 1⤊ 0⤋