how can someone in minnesota buy a $300,000 home on a yearly salary of $45,000/yr.?

Answer 1

I don't know. When you find out from that "someone" how, you let me know.

Answer 2

If you have good credit even with a high debt to income ratio you still may be able to get approved for a loan of this amount assuming you do not have any other debts such as a car loan, student loans, or credit cards. There are many Automated Underwriting systems lenders use that will approve loans with a 50-60% debt in relation to your income ratio assuming you have good credit. Fannie Mae has a program called My Community that will approve loans like this with an Automated Approval. BUT I must caution even if you can get approved for a loan for $300,000 doesn't mean it is the best idea to commit more than half of your monthly income to a house payment. I would recommend looking for a less priced home, or renting for a year or so and try to save as much as you can for a down payment or accumulate as much of a savings as possible.

Answer 3

I severely doubt it

You would need at least $30K down, and then get financing for the $270K, which would result in about $1500 a month mortgage, which comes to well over 1/3 your income, not too mention annual property taxes, homeowners insurance, etc.

That big a house I imagine you have children, and probably need for two cars - which adds $400-$600 a month in car payments, and then add auto insurance, monthly maintenance and gas.

haven't even covered untilities for that size a house, nor groceries and other expenses.

Answer 4

Maybe they inherited a substantial sum of money or won on a lottery ticket ? You are assuming that the huge percentage of the value of the home is covered by a mortgage. You could be quite incorrect. They may only have a $100K mortgage on this joint, with the remainder coming from personal funds.

Answer 5

Save up $200,000.00 and use that for a down payment, and then get a mortgage on the other $100k.

Your mortgage payment including tax, insurance, and HOA fees should not exceed 25% of your takehome pay.

So the largest mortgage someone with a 45k income can afford is about 100 grand.

Answer 6

Please do NOT let a loan officer or mortgage broker talk you into any type of program which enables you to 'afford' the house. If you do find one who says they can do it, they are unethical because quite simply, you can't afford the house and the amount of risk.

Lower your price range. There websites out there (bank websites, RE brokers, bankrate.com) that have calculators that will help give you an estimate of how much house you can afford based on inputs of income, monthly payment, credit, interest rate, etc.

Answer 7

You won't qualify unless you have lots of cash in bank. Or maybe have family members putting their name on the mortgage. Think about this though. When you spend all week working, and you come home to a nice house but have no money to enjoy yourself, what is the point.

Answer 8

Get into the right program or put money down. A creative loan officer can find a way. I recommend First National Banc Corp. They do business in most states and are your best opportunity for someone to say yes. ADDITIONALLY, IF YOUR CREDIT IS SUSPECT, THEY SOMETIMES FRONT THE MONEY TO GET YOU INTO A CREDIT RESTORATION PROGRAM SO THAT YOU CAN QUALIFY FOR A LOAN. Check out the free evaluation form at the source website and a First National loan officer will contact you within 24 hours. Good luck.

Answer 9

That would be hard to do here in Texas. Maybe the loans are easier to get in Minn. My bank would laugh at me unless I put up a lot of down payment money.

Answer 10

It's called DEBT!!!!

PS, the state you live in doesn't change the fact the house was $300,000 or their salary was 45,000....waste of my time to read, and then scold you...

Answer 11

They're up to there eyes in debt. They have a huge mortgage that will bite them in the *** with their interest rate.