Can anyone buy a house on $28k income?

Question

When I talk about renting everyone says "you are throwing your money away" and talk about 1st time buyer programs. But do I have any other choice than to rent when I live alone and make so little? I mean, I may be able to make the mortgage payments but if anything went wrong with the house, which of course it would, I'd be screwed...

Answer 1

$28,000 annually = the ability to make a $400 - $450 mortgage payment. You can afford a $50 - $60 thousand dollar house if you can get together a few thousand dollars for a down payment.

Answer 2

Sure, it happens all the time. Rather than go through a math equation of what you could borrow I will affirm that your friends are telling you the truth. I could also explain mathmatically how much wealthier your friends will become from home ownership, but I don't want to depress you. I am a single guy and understand where you are coming from. When I bought my house I was looking at a payment that was 80% more than what I was paying in rent at the time which wouldn't allow for any repairs a house might necessitate. The answer ... buy a house that is in good shape. The first summer after I bought mine, a tree in the back yard blew over in a storm and crushed my fence and the edge of my roof puting me in the exact position I was afraid of. The answer ... insurance (actually paid me more than the repairs required). Oh then I thought what if my water heater or my HVAC needs to be replaced. No need yet but the anser ... credit card. Once you start paying a mortgage payment for about 5 months your credit score sky rockets such that everyone under the sun wants to give you a credit card. A house does require maintenance, but often it isn't that much and worth every penny in the long run considering the return on your investment. I was a late bloomer to home ownership (and a walking oxymoron as a Realtor who rented). I specialize in helping no money down first time buyers and can also affirm their are government programs to help lower income first time buyers just as your friends have told you.

Answer 3

Hello. Glad you asked this question. Ever heard of low income housing. If there is a Rual developing or USDA in your area or Hudd.
They base this on your income. Also research the houses through your bank find out where the repossed houses are more times then not they auction the houses just for the pay off. Go to the assessor's office at the court house. Ask to see if there is any property or houses that have not had taxes payed on them for seven years. Pay the back taxes and then it becomes yours. Not as expensive as you may think. Also the low income housing is based soley on your income if your income decreases, so do your payments.If your income increases so do your house payments. It must increase or decrease 10% before your payments change. I know things go wrong with houses. This is a true concern of any home owner. This is where insureance comes in. Also you might want to check into contracts on these low income houses such as Hudd. They may help you fix somethings that go wrong. You rent throw money away. You own your own home you fix every thing that needs to be repaired out of your pocket. Remember though this is why you have house insurance. Hope I have been able to help you some. Before you buy be sure it is exactly where you want to live for 25 to 30 years. We had our house built 3 years ago and already we are having to move. This was not what we had planned. My husband has to drive one way to work is 50 miles. 100 miles a day. It is not feasable we can no longer have our horses on our property here either. So I started a home business for myself and we are moving.

Answer 4

It depends on where you live and how expensive the houses are. First time buyer programs exist but they may be hard to find or not available in your area. Some government enterprise zones work with the housing department or the Department of Housing. You could look for information on their website and see if you qualify. Sometimes business owners have programs to assist their employees. I suspect it is all very difficult to accomplish however. Good Luck

Answer 5

You are right. What you should do is try to save up as much money as quick as possible then you can make a big down payment. Then your mortgage will be less, and you could probably even get a better interest rate. Your only other choice is to live in the ghetto, but then you run the risk of you property value going down even further, or even worse, getting robbed or something.

Answer 6

Yes you can buy a house on $28k income.
First time buyer will help you a lot.
Seek for advice from people in the same situation.

Answer 7

You will need to find a cheap place to buy. You can guard against not being able to make the mortgage repayments by getting insurance to protect you. You should sit down with a mortgage broker/estate agent and work out your options but don't convince yourself that you can't do it until you have explored all the possible alternatives. Best of luck.

Answer 8

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Answer 9

Try first time home buyers programs that pay opening and closing costs also ask about programs that supply the appliances without charge. My cousin brought a house on a footlocker salary and she wasn't a manager.

Answer 10

Its a very general Ques ton , you re saying "can i buy a house on 28 k a year" Yes you can Have a good time in Compton LA