What could I realistically afford? Want to get a house...?

Question

I make just under $33,000 / year and I want to get a house within the next 3 years. I assume I will be getting a bit of a raise over those 3 years. I'm tired of throwing my money away renting and I want to buy a home and build some equity. I figure I can afford a mortgage payment of no more than $900/month MAX. I am single and wouldn't have anybody that can help pay. Can I realistically afford to purchase a home? If so, what price range is realistic? I know I probably couldn't afford much over $150K but I don't want a crappy house that I would just have to invest more money into. Your advice and recommendations are appreciated.

Answer 1

Talk to the mortgage dept at your bank and talk to one of their loan officers, they will check you debt to income ratios and credit and tell you exactly how much home you can afford.

Banks are usually cheaper than mortgage brokers, who are just middlemen.

Answer 2

I have answered this question so many times it hurts. You have not given enough information. It takes collateral, capacity to pay as well as credit. You told us what you make but not about your other monthly bills like credit cards car notes student loans etc. These all go into your debt ratio and effect how much home you can comfortably buy. Also your score enter into the equation 620 or less you will be a sub-prime borrower. 620 or greater you could be a prime borrower but that is not guaranteed. So you can see there is way too much left to the imagination as to make an informed answer. Other things that will be considered are cash reserves and type of employment and time of service on the job, down payment and other assets.
Let us know so you can get an informed answer.
I am a mortgage banker in TN & KY

Answer 3

If you are making $33k, your take home is around $2000/mo.? That is without any 401(k) or savings. If you were to buy a $150k property, you need around $22,500 downpayment. Then, your loan would be at least $127,500, more like $129,000 with closing costs, etc. Your payment will be $830 per month with interest rate of 6.135% for 30 years. This does not include property taxes, insurance, and management fees (if you are buying a condo.). If you can do this, it would be a great thing. I don't know what state you live in, so I don't know what percentage your property tax is. Do you have the downpayment, what about your credit rating? The rate 6.135% is based on really good credit history, and minimum 15% down (more like 20% down, that means$30k).

Answer 4

150K is going to run you much over the 900/month range, unless you do some creative financing like ARMS or interest only loans, which I reccomend you steer clear of.

A mortgage payment is made up of:
P&I (principle and interest)
taxes (county)
Home owners insurance
PMI, if required.

I had a 145K house a few years ago with an ARM loan at 4.5% interest and my payment was $1088 becaause of a high PMI ($138 a month.)

Consider finding a buddy that would rent a room in order to purchase a home you want.....or you'll have to look in the $100K range.

Answer 5

Typically someone with 33k a year income and not to much debt could afford a max of about 150k home price. They say your limit is ussualy around 5 times your income. Although in
this housing market I might stick to 4 times your income.

I think if your credit is good you could probably afford to go up near 150k. But maybe you should aim for 130-140. Or perhaps wait until you live with someone and can have joint income. That will expand your limits by alot.

Answer 6

Here are links that you can use to hunt with and determine on your own what you can and can not or will not do
List of all available Federal programs http://www.govbenefits.gov/govbenefits_en.portal;jsessionid=FX2KrmkSYpQNWvJT5M5bCT8d6NfrbMGL2kWh01jgmGKD5HYmGYyj!-1747634320?_nfpb=true&_pageLabel=gbcc_page_locate_federal&_nfls=false
Finding out what benefits you are eligible for with the US Government
http://www.govbenefits.gov/govbenefits_en.portal?_nfpb=true&_pageLabel=gbcc_page_questionnaire&_nfls=false
FHA Rural Housing loan programs: http://www.rurdev.usda.gov/rhs/common/indiv_intro.htm
US Government Housing assistance grants all areas:
http://12.46.245.173/pls/portal30/catalo...
US Government Grants page: http://www.grants.gov/
US Federal Domestic Assistance catalog for all Federal Programs available to State & Local Governments & the Public
http://12.46.245.173/cfda/cfda.html
All government Benefit Programs http://www.govbenefits.gov/govbenefits_en.portal
Federal Reserve, pamphlet on acquiring the best mortgage: http://www.federalreserve.gov/pubs/mortgage/mortb_1.htm
US GOVERNMENT CONSUMER TIPS ON HOMES: http://www.consumer.gov/yourhome.htm
Low Income Home Purchase Assistance (Private): http://www.nehemiahcorp.org/
AFFORDABLE HOUSING CONTACT LIST FROM REALTOR.COM US GOVERNMENT AND ALL STATES: http://www.homefair.com/homefair/servlet/ActionServlet?pid=187&art=contlist&cid=homefair
Low income housing assistance (private) Habitat for Humanity: http://www.habitat.org/
USDA Rural Housing programs & eligibility requirements: http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do
Mortgage Calculators – Includes finding if you will qualify for a mortgage:
http://www.mortgage-x.com/calculators/Pre-Qualifier.htm
Buena Suerte

Answer 7

you can get a house now if you really wanted to. you are not doing anything but wasting your money renting. depending on what your credit score is and how much you make will depend on how much you will be able to afford to pay every month. i'm a loan officer in pa and can do loans in some other states but it depends on where you live at if i will be able to help you. shot me an email.

Answer 8

read tips on mortgages, loans, real estate and much more to help you understand better on this site