But I am in school and have about 20,000 in student loans. I also owe 6000 for my car.
Can I buy a house?
2007-02-26 16:28:09 · 11 answers · asked by Okay Hero 2 in Business & Finance ➔ Renting & Real Estate
If buying a home is a real priority, perhaps you can get a couple of roomates to help with the mortgage payments.
2007-02-26 16:39:27 · answer #1 · answered by Anonymous · 2⤊ 0⤋
You will be strapping yourself too thin, taking into account your school debt. You don't make enough money to pay that back, and a mortgage, and a car payment. The answer is no. Sure, someone is bound to give you a loan but my guess is with the kind of debt you have and the low salary (that is key here), you will end up defaulting. Mortgage brokers like the guy above are in business to loan money because if they don't, they go out of business quickly. They will all tell you that you can afford the moon! Only YOU know what your financial obligations are, not them! Don't buy into it when they tell you that you can afford it. All they want to do is secure a loan and make their money. If you default, they don't care as they have already made their money. Why not rent a bit longer (if that is what you're doing) and when you are close to getting those student loans paid way down then look into buying. Wait too until your car is free and clear; and to the guy who told you it was no big deal, it is! $6,000 is a big deal when you have to pay it off, and remember, you may have other unexpected expenses that come along that will further set you back. Do not get in over your head, because things can quickly spiral out of control. The rate of foreclosure in this country (USA) is ever growing and jumped up considerably in just the past year.
2007-02-26 17:04:08 · answer #2 · answered by Anonymous · 2⤊ 0⤋
No. At least you shouldn't. I don't know what your payments are, but there's a good chance that between the student loans and car loan, you're paying anywhere from $250-400 monthly. That's already eating up 20% of your monthly gross income. That really only leaves you with $500-600 for a total housing payment.
Unless you live in an area where $50,000 homes are common and available, good luck finding a home to fit that payment.
2007-02-26 16:33:49 · answer #3 · answered by Yanswersmonitorsarenazis 5 · 1⤊ 0⤋
I've worked in the Financing Industry for a very long time before I went Active Duty...
Your student loan- Your school loan would not be part of you debt to income ratio on your application for a mortgage because you are not paying on it yet. Because you are still in school, your loans are deferred of course...However when you get out you can call Sallie Mae and whoever has your loan and request an "Economic Hardship Deferment" it's a quick application and very painless and the typical hold until you start paying on it is about 5-6 years...buy the house, then refinance your 20K in student loans in a couple of years along with your car loan.
Your car of 6K- this is typical, really not a big deal.
As for buying a house their are many options such as $0 down payments because of you credit or not you can do a lot of things...Go for it and check us out!
I hope this was helpful!
Regards,
www.FinanceYourWay.com
2007-02-26 17:05:54 · answer #4 · answered by Anonymous · 0⤊ 2⤋
Yes, I just became a mortgage broker 5 months ago and I got a women at the age of 26 to buy her first home. But all she had to do was pay some of the loans back to get her qualify. We told her to get a loan on Prosper.com, pay back some of her loans, and have some money for a down payment. She did everything as we told her and know owns a new 3 bedroom - 2 bath home.
2007-02-26 16:50:31 · answer #5 · answered by hector6man 2 · 1⤊ 1⤋
You can if you can find one with a monthly payment of about $500 a month.
Short answer: No.
If a house costs X, you will pay at least .06X every month for a house payment. A $200,000 house is at least $1,200/month housing payment.
Graduate from school, get the good job, pay off the car, and work down the student loans. Then you can buy the house.
2007-02-26 16:35:37 · answer #6 · answered by John T 6 · 1⤊ 0⤋
Can you get those student loans deferred? If you can't, your debt load is too high for your income.
You owe that much from schooling and yet you are only making $24,000 a year? Didn't you put your diploma to good use? (Sorry, I had to ask).
Maybe you can get a second party to go in on the mortgage with you, it would help.
2007-02-26 16:33:38 · answer #7 · answered by Barbara 5 · 1⤊ 0⤋
No, you probably cannot qualify to buy a home, even though you have good credit. You don't generate enough income to pay a mortgage (not to mention taxes, insurance, and maintenance), especially since a large chunk of your paycheck is already going to pay debt. You should pay off your car, save a large downpayment, or raise your income before trying to purchase a home.
2007-02-26 16:36:42 · answer #8 · answered by lizzgeorge 4 · 2⤊ 0⤋
anybody over 560 can get a loan at some interst rate. Yours is terrific so you should have no problem.
2007-02-26 16:33:25 · answer #9 · answered by Press_Any_Key 2 · 0⤊ 0⤋
In your dreams possibility .
you make 24k a yr,your credit score sucks,and you owe 20k in loan's ,and 6k car note ,wow why not buy a house i ask? DUH
2007-02-26 16:38:05 · answer #10 · answered by Anonymous · 1⤊ 2⤋