The bank says "no problemo" - but they just might wanna snatch the house back in 6 months! Here are the details, and yes, I'm in NY:
Gross income: $8500 (net $5500)
All bills generally come to $1600
How much house can I pull off? I'll likely put down 5% and then have two mortgages: an 80% at about 6.25 and a 15% at about 8.5%. Help!
2006-11-13 12:22:18 · 7 answers · asked by purely g 1 in Business & Finance ➔ Renting & Real Estate
I think you should be looking at a home in the $250,000 range or less. The banks are pretty generous. You don't want to just live in it though, you want to go to dinner, take vacations, etc. If you spend all your money on your home it is more of a trap.
2006-11-13 12:25:18 · answer #1 · answered by Nelson_DeVon 7 · 0⤊ 0⤋
There are other considerations to look at. For example, you say all bills come to $1600 - is that with rent, the estimated mortgage, or neither? You have to look at things like property taxes. If you buy a condo/apartment...association fees? Homewoner's insurance? Are those percentages adjustable...you're payments on both loans would only go up frome there! If you're buying up (like into a house from living previously into an apartment)...you're utilities will probably increase! Also, something to think about, is going into a loan with such a small down payment is the issue of the housing market crashing...you could be upside down rather quickly, meaning that you'll owe more than the house is worth. If for some reason, you have to sell in a hurry, you won't sell for enough to pay your loan(s) off.
I would wait for a while, save more money for the down payment, and see if the market really does drop and you'll be that much closer to the 20% typical down payment!
Good luck!
2006-11-13 20:34:34 · answer #2 · answered by diveqat 2 · 1⤊ 0⤋
Mu husband and I got 7.5 percent but his income is higher. We do qualify for FHA and 100 percent financing and our mortgage will be about one hundred dollars less than what we are paying in rent now. Our credit is on the low side of fair and we have been having to give so many credit references. The closing was supposed to be tomorrow but it takes a long time to get the banks approval and it is very stressful. We started proceedings in September and yet here I sit in the house we are renting.
2006-11-13 20:27:38 · answer #3 · answered by Illyria 2 · 0⤊ 0⤋
If the $1,600 is actual bills besides rent, food, going out.... bills like credit cards, car, student loan, then the lender will probably qualify you for a payment of about $3,000. This should include PiTI..(principal, interest, taxes and insurance). Is that allot more than you're paying in rent? Try not to move up too much from your current rent payment.
I don't know how much the taxes and insurance is for houses you'll be choosing from, so I can't tell you how much sale price that translates to.
Keep yourself within reason - don't buy all that you're qualified for, and don't move up too much from how much you're paying in rent.
2006-11-13 22:25:28 · answer #4 · answered by teran_realtor 7 · 0⤊ 0⤋
Oh man- the banks ALWAYS pre-approve people for more. Sure, if you don't want to do anything else but sit in that house. The best thing you can do is first determine how much you are want to pay keeping in mind investing and saving. Then work backwards.
Never go to the MAX they say you can get. You'll be dead meat.
Good luck!
2006-11-13 20:25:55 · answer #5 · answered by Mommyk232 5 · 0⤊ 0⤋
Buy a duplex, rent one side and live in the other, pay off your debts. Build your assets. Let your duplex pay for your house. Let your tenants pay for the duplex. Both the house and the duplex will be yours for free. If you repent these steps a few times you could live in any house you want. "The Motivator"
2006-11-13 20:44:20 · answer #6 · answered by Anonymous · 0⤊ 0⤋
if you have no other bills you can possibly get a house for about 180,00
or more Good luck and God bless on your new home
2006-11-13 20:25:45 · answer #7 · answered by D lightfully Blessed 2 · 0⤊ 0⤋