I am a first time home buyer with a credit score of 695. I will not have a down payment. Thanks for your help!!!
2007-03-28 07:12:09 · 5 answers · asked by cuteredhead 1 in Business & Finance ➔ Renting & Real Estate
I currently make 52K annually and I have a car payment of 380 per month.
2007-03-28 07:32:30 · update #1
Usually lenders will go as high as 40% debt to income. How much you earn is only half of the equation to determine whether you would qualify.
We would also have to know your monthly payments for car loans, student loans, credit cards, and any other loan for which you are responsible for paying.
Also, it depends upon the mortgage product type, since different products require different monthly payment amounts. You may qualify for one type but not another. You should use the mortgage payment calculators on major banks' web-sites to test it out.
2007-03-28 07:25:44 · answer #1 · answered by Matt K 4 · 1⤊ 0⤋
Your question should be: how much should I make annually to afford (not qualify) a house that costs $198k? We have a problem in the sub prime mortgage market because a lot of people qualified yet they could not afford the house they bought.
To afford the house you should make around $62k annually. All the mortgage "pushers" are going to tell you less. In addition to the mortgage you have maintenance costs, possibly HOA fees, etc.
You need to find a mortgage calculator and see what the monthly costs are. Then add insurance costs, taxes, maintenance and all other costs. Then add on utility costs. If this is 33% or less of your net pay then you can "afford" the 198k home. If it is 40% or more then you are in dangerous territory.
2007-03-28 14:40:23 · answer #2 · answered by Roger C 5 · 1⤊ 0⤋
You don't make enough to pay for that house. You'll most likely qualify, but you'll struggle once in the house. Don't forget about Property insurance, neighborhood association fees, utilities, insurance, plus normal costs involved with the upkeep of a home.
2007-03-28 14:49:31 · answer #3 · answered by baryymahoginer 2 · 0⤊ 0⤋
Probably somewhere around 50k would be enough. however, not having a down payment could really hurt you. Not only is it risky in this housing market, but you will have trouble building equity in your house. Wait until you have at least a 10% downpayment would be my advice.
2007-03-28 14:50:43 · answer #4 · answered by Anonymous · 0⤊ 0⤋
40K I would think. I can help you with this loan, just shoot me an email to msmith@premierloangroup.com, and I'll see what I can do!
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Marty
2007-03-28 14:30:47 · answer #5 · answered by Anonymous · 0⤊ 0⤋