I don't make much and i live in Miami,Fl where houses are ridiculously overpriced! I found pre-construction downtown from the 160's to 250's. i would love to own but is this unrealistic and dangerous? i have excellent credit.
2007-05-31 09:28:18 · 5 answers · asked by zonkietheterrible 2 in Business & Finance ➔ Renting & Real Estate
Well I have always lived in Miami, and am currently living with my family. So I don't pay rent, and my monthly expenses are basically my car and cell phone. and about $1000 in Credit card debt. Thats about it.
2007-05-31 09:46:43 · update #1
how does pre-construction work though? do you immediately start paying a mortgage or is it just the construction and contract deposit at first to reserve?
$140,000 doesn't exist in miami unless you live in a hole. thats the problem.
2007-05-31 09:49:40 · update #2
If you can only afford a 5% or 10% down payment, it could very challenging. Would it be possible to rent out one of the rooms for a few years? Do you have a 401k that you can borrow from? It also depends a lot on taxes and fees. Try to figure out how the first two years would work. If you get that far without too much trouble, it should be good.
2007-05-31 09:52:12 · answer #1 · answered by Menehune 7 · 0⤊ 0⤋
Banks work of what is called a Gross Debt Service Ratio. Depending on the bank, it's usually 30-40%. Meaning, they will allow you to borrow an amout that has payments up to 40% of your gross income.
Using 40% and a 36K salary, that would be 1,200 a month. This 1,200 would have to cover all your other debt (if you have any), propery taxes and mortgage payments.
Let's assume you have no other debt. $160,000 mortgage will cost you about 1,000 a month. That leaves you $200.00 for property taxes. Note: some banks include utilities in this figure.
Realistically I would aim for about a 140,000 mortgage. If you have a 20,000 down payment that puts the lower end property you mentioned in your range. You could always borrow a little more by amortizing the loan over more than 25 years. 25 years is fairly standard though.
Good luck.
2007-05-31 16:40:52 · answer #2 · answered by No Name 2 · 0⤊ 0⤋
I wouldn't over extend myself on So. Fl. real estate but if you were going to try and do it, I'd buy with the intentiones of perhaps renting a room to someone or getting in touch with one of those services that places professionals temporarily in housing until their time here in Miami is done.
2007-05-31 16:37:02 · answer #3 · answered by J.C. 3 · 0⤊ 0⤋
What is your existing monthly debt? Without additional information, nobody will be able to answer your question. Do a search for "Mortgage Calculators" and find the one that calculates how much you can afford.
Best of luck.
2007-05-31 16:38:42 · answer #4 · answered by Anonymous · 0⤊ 0⤋
You can't afford one. Sorry. I would try to get a second job. Not everyones garrenteed a house.
2007-05-31 16:43:18 · answer #5 · answered by jcrichton33 3 · 0⤊ 0⤋