My credit score is around 644 (middle) which I am repairing, and I would need to be moved in by February 2006, the only money I have is 2,000 which can be for the closing costs or dp, and Im a first time home buyer. Is this feasable? All I have is credit cards on my credit report so its not really detailed. They rejected me for a car loan, so I dont know if I even have a chance at this. Im sick of renting! grr!
2006-08-06 14:28:38 · 13 answers · asked by ? 2 in Business & Finance ➔ Renting & Real Estate
Hi Mindy:
The over-riding factor is your debt to income ratio:
Based on your current income:
Your housing including taxes & Insurance should not be more than $750/mo
Your total debt ( Housing, credit cards. loans) hould not be more that $1125.
Your credit score of 644 is enough to qualify you for 100% financing, but expect to pay higher interest rates. There are some government programs like FHA that require a low downpayment.
Please contact me with further questions. I specialize in helping 1st time homebuyers.
Good Luck!
2006-08-07 00:37:48 · answer #1 · answered by amkornele 3 · 1⤊ 0⤋
I hope you meant by Feb. 2007?!
You can pretty much afford a lot of things...if you BUDGET your money correctly. You have to live on less than what you earn. Each paycheck, put away 10% of it and watch it grow.
There are a number of reasons you were probably rejected for a car loan. You say you have a lot of credit cards...are they maxed? Near their limit? Over their limit? How many are open? A good mortgage company will not approve you for a house loan with maxed out credit. Period! The more open credit accounts you have, the less chances you have of getting a house loan.
Your best bet is to stop spending on those cc's and save, save, save! You WILL get approved for a loan once you do that.
2006-08-06 14:39:32 · answer #2 · answered by NFCsouthchik 2 · 0⤊ 0⤋
My salary is $42,400 and it's very tough for me. My home loan was for $135,000 and my payment is $950/month..
If you only have $2,000, then I wouldn't buy a house at this time. Closing costs do vary, but I think they're 3% of the total loan.
Having said all that, people are different and you can probably manage money better than me. It also depends on what kind of house you're looking for and how much you're going to get a loan for. If you're going for a $80,000 house, then get a 110% loan to cover closing costs and the cost of furnishing your house.
Also, it's 100 times easier to get a home loan than it is a car loan, simply because the value of house increases with age and the value of a car decreases dramatically when you drive off the lot.
2006-08-06 14:38:21 · answer #3 · answered by owensb01 3 · 1⤊ 0⤋
You didn't mention where were you located.
Anyway with just the info you gave here I can tell you I could easily find you a really nice Home in South Florida.
664 credit score is still acceptable to join a a few programs that could take care of closing costs and down payments in your case. Keep your $2000 to furnish your new home.
2006-08-06 14:56:51 · answer #4 · answered by digiteerx 2 · 0⤊ 0⤋
In general, your mortgage should be around 3x your annual income. So, $90,000 max + whatever down payment you have. A Mortgage is a secured loan, just because you were turned down on unsecured loans like credit card or car loan, you should still be able to get a mortgage. Use a mortgage broker to find the best deal. Good luck.
2006-08-06 14:33:23 · answer #5 · answered by Anonymous · 0⤊ 0⤋
It's fairly easy to get a car loan, and since they rejected you, there's something gone on you're not telling. You sure your # is that high?
Sorry to say, but you might can buy a mobile home, or a cheap house.
Contact the fanny mae foundation.
There are some no money down home loan programs out there. You just have to know how to find them.
2006-08-06 14:38:52 · answer #6 · answered by somepeopleRstupid 3 · 0⤊ 0⤋
If you live in an area where houses are really cheap, you could do it.
Just don't get more house than you can afford and make sure you have a few thousand put away for emergency repairs. Things break, and you won't have a landlord anymore to call and have it fixed for free.
2006-08-06 21:08:56 · answer #7 · answered by BoomChikkaBoom 6 · 0⤊ 0⤋
If you got rejected for a car loan, probably not. It never hurts to talk with a mortgage broker or bank to see how much you qualify for. There is not charge to process your application.
2006-08-06 14:33:19 · answer #8 · answered by The Big Shot 6 · 0⤊ 0⤋
these are all good answers, but you simply aren't prepared to buy a house. along with the things you listed, i'm sure your debt-to-income ratio is not in your favor. try to look for a rent-to-own property. depending on where you live, you might be able to get into a relatively affordable condo. just not right now.
http://www.incharge.org/Credit_Counseling/Resources/MoneyManagement/DebtToIncome.aspx
http://www.ehow.com/how_7226_calculate-debt-income.html
these are just for sample info. only. look into rent-to-own opportunities in your area:
http://www.homesidefundinggroup.com/Main.htm
http://home.earthlink.net/~thai.oracle/id13.html
2006-08-06 14:48:59 · answer #9 · answered by yer daddy 3 · 0⤊ 0⤋
Do you mean february 2007?
2006-08-06 15:07:16 · answer #10 · answered by mynamesapain 2 · 0⤊ 0⤋