can i get a home loan for 190000 on 3000 per month income and only one debt for 500 per mo.?

Question

my credit score is 660 and i have ten percent down payment, if so where

Answer 1

Yes you can get a 100 percent loan - or a 90 percent one, with the 10 percent down. If you borrowed the full amount your P/I (Principal and Interest) would be 1296.14 on 190,000 and 1166.53 based on 90 percent 171,000 loan. Taxes and Insurance would have to be added in to this factor, and calculated into the DTI ratio. This is just an estimate only ok - I underwrite for 150 companies, so I look for the best rate and program for my clients.

Lenders will look at your DTI (Debit to income ratio) to see if you are over extended.

Conforming DTI is 45 percent - rates are better
but you will have MI insurance included. MI is based on any loan amount over the 80 percent borrowed.

Sub-prime DTI is 55 percent - rates are higher, but have no MI included.

If you go with a FHA loan, FHA has MI included. (With a 580 + you will be going sub-prime the rates are higher by about a 1 percent, but you have no MI. (MI is mortgage insurance in case you default on the loan, it is a way for lenders to have added insurance. It is not the same as Home Owners insurance, ok) VA loans do not have MI insurance.

Conforming A+ borrower's loans have MI included, but the rates are better starting in the mid to high 6's (with rates going up.) The more money you borrow - the higher the rate normally. There are a lot of factors involved.

With a government loan - collections and judgements will have to be paid (most ppl do not know that) but for FHA it is true..

I based the payments on sub-prime, with no MI

Use this formula:

3000.00 x 55 percent DTI = 1650.00
Less 500.00 debit = 1150.00 for house payment, that is not counting the property taxes and insurance. Looks like you will have to go stated (Stated means you can get a 100 percent loan, but we do not verify income, just employment. The income is stated slighly higher, so your DTI is not high, and you can get the home you are wanting.

You could go interest only for 5 years, and your payment will be lower, where you can get the home you are wanting. Than refinance in 5 years. When you are making more money. Is this the home you want to live in the rest of your life? If not interest only or a pay option arm is the best - You would have 4 payment options, and you choose what your payment is. Many ppl are going that way, to get the home they are wanting, and able to afford the home of their choice.

Consider if you are needing help with closing cost, since you are putting down 10 percent. Or you can put down 5 percent and use the remaining for your closing cost, if the seller is not willing to help with any of it.

Talk with a broker, a broker underwrites for many company's (I underwrite for 150 companies) so I only have to pull credit 1 time, and they look at my credit. A single lender (not a broker) has programs available, but they may not be able to help you and your situation, so you go elsewhere, and than 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. When looking for a home, please do not apply for a credit card, Department Charge Card, Gasoline Card or make any major purchases, like a auto, etc. This will pull your credit down.


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). The GFE will tell you the up-front closing cost associated with your loan. The TIL will tell you the terms, rate associated with your loan. This is a estimate only - not the final - but it does help you figure things out.

Decided on the type of program (loan ) you are wanting. A 30 yr fix is still roughly at a 6.5 rate right now - but if you are needing a 90 percent ltv the rate is around 7 percent and a 95 ltv is 7.375 and a 100 percent rate is 7.5 ( This is a estimate only, since I do not know what your credit score's are....There are also, interest only loans - adjustable loans, option arms (where you pick the payment, from 4 payments, including interest only). Interest only are lower payments, but nothing is being paid on your home. Some self-employed ppl like the payment options, in a lean month when money is tight., they can pay a lesser amount.

Good Luck - the Loan Process can be fun - at least I love being a Broker, getting to help my clients is rewarding to me. Find a Broker who cares and will go over the full loan process with you and be in contact with you daily. The one on one customer service is important, to you, the client, to let you know the whole loan process.

Answer 2

Well it all depends on your interest rate you will be receiving for the loan. (credit) One says an arm loan. Stay CLEAR of a arm loan. Those are the loans that everyone is in trouble with todays foreclosures. Be sure you get a fixed 30-40 year fix interest rate loan. Have the 20% down payment for the home. The rule of thumb of past years was about 10% of the total homes value. Guess what that same rule applies even today. The one person in here has that one correct. Any loan officer that tells you to get an interest only or a ARM loan. Run for the hills and get another loan officer. Be sure before you sign your loan papers have your attorney look over those papers. Also have them look over all of your legal documnets before you sign a thing.

Answer 3

Yes, you can. Wanda gave an excellent answer. The debt ratio is your biggest problem. If you've been working in the same industry for at least two years, you could qualify for a stated income loan and the debt ratio wouldn't matter.

Rick Lanicek
www.primelendingonline.com

Answer 4

Anyone can get a loan for any amount. Whether or not they can afford it is another thing.

A $190K loan will cost you about $2,000 a month, including PMI.

What will you do for utilities, insurance, maintenance, food, car, and life?

Also, where do you live? $190,000 won't get you anything in Los Angeles, but it will take you to nice places in Atlanta.

Answer 5

not likely...your monthly mortgage payment including taxes and insurance should be no higher than 30-35%of your income for the month. Save a larger downpayment or start looking at houses in the $125,000to $150,000 price range

Answer 6

You certainly can. The lender I work for is more than capable of writing that loan. check out www.quickenloans.com. The bigger question is if you can comfortably afford the payment with the income you have. I would recommend talking to a mortgage professional and review various loan options to make sure the payment fits into your budget.

Answer 7

As one of the other people pointed out, don't forget to facttor in Taxes, INsurance, and PM (Personal Mortgage Insurance, which the lender will require if you don't have 20% down.)

Add in household utilities and living expenses, and I think you'd be pushing yourself too far financially. I think you could find a lender who would do it, but you'd be better finding a cheaper house.

Answer 8

the banks will give just about anyone a loan these days the rate is the kicker The credit score of 660 is not to good,but they will give you a loan.Might not be the best one .

Answer 9

Interest only

Answer 10

yes

Answer 11

And the same question shows up again