2007-02-19 06:18:05 · 2 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
my gross income is 74,000
2007-02-19 06:18:38 · update #1
No more than 28% piti Principal interest taxes and insurances This is the rule of thumb but not always the same in all cases. Remember it takes 3 things to make a mortgage work.
collateral
capacity to pay
credit
The higher the score the more debt ratio the lender will allow.
I am a mortgage banker in TN & KY
2007-02-19 06:32:47 · answer #1 · answered by golferwhoworks 7 · 0⤊ 0⤋
The previous answer is sort of correct but much more flexible than it appears. Depending on credit score and amount of down payment and type of loan. A conventional loan can go to 40 or 41% of your monthly gross. In your case, that would be about $2500. However in this case, that would be the amount for your entire debt load. Car payments, credit cards, ed loans, etc. Subtract your monthly debt from 2500 and that would be about what you could qualify for Principle, taxes, interest, insurance.
If you buy VA, I have seen percentages as high as 53% for debt load. Soooo best thing to do is to talk to a mtg broker. Not banks....they are much more conservative in lending.
2007-02-19 22:32:32 · answer #2 · answered by loandude 4 · 0⤊ 0⤋