$30K a year, my wife makes $22K a year, and I have piss poor credit?
We currently rent an apt for $825 have for a couple of years, but I want a house. And a decent one, out the door, is $300k where I live. (Fresno, CA)
Thanks.
2007-07-02 11:18:42 · 8 answers · asked by randumb 2 in Business & Finance ➔ Renting & Real Estate
Yes it may be possible for you to get approved for a home loan to buy a home of $300,000 based of your combined income. Even if you have poor credit there may be some lenders that can still approve you for a home loan even with poor credit. But the question you may want to consider is can you realistically afford a mortgage payment on a $300,000 loan? Even if you get a great rate, which may be hard without good credit, a mortgage payment is going to be over $2,000 dollars per month on a $300,000 loan. That will be more than 50% of your monthly income.
2007-07-02 12:03:50 · answer #1 · answered by mateomortgage.com 2 · 0⤊ 1⤋
I am sure there are some people out there that would make the deal, and after a year or two when you end up in forclosure then where will you be? Not to rain on your parade but let us look at numbers. If you are having trouble with a rent of $825, and you will not find a mortgage for that how are you going to survive the higher payments, let us not forget that it is not just the mortgage payment for the house, but taxes, upkeep, etc. At this point you are better off taking a year or so and improving your credit score for a better rate. Pay the bills on time, get your cards down below 30% of their limit, or better yet paid off but do not close them. Sorry I want to see you make your dream a reality, but I do not want to see you achieve it and then lose it. Patience and diligence
2007-07-02 11:56:32 · answer #2 · answered by Pengy 7 · 1⤊ 0⤋
You need to look at your complete financial situation including monthly bills, credit card balances you carry over if any. Next, are your jobs stable and any hope for promotions? Next, do you have children or are planning to have them in the near future? And finally, do you have a down payment? I would suggest you save for a "large" down payment while you look around and improve your credit rating. Don't rule out an "older" home in an established neighborhood that you like. There are charts that tell you how much your monthly payment amount will be based on the amount of your loan and interest rate. Do your homework because a home purchase is a big investment.
2007-07-04 14:00:15 · answer #3 · answered by wizeman 2 · 0⤊ 0⤋
Find a local mortage broker. You should be able to buy something in the next year with the proper credit repair and debt management.
If you are looking to finance the entire loan (100% LTV - loan to value) then expect a monthly housing payment around $2500 a month. Can you handle that?
2007-07-02 11:28:06 · answer #4 · answered by Spiral Wizard 3 · 0⤊ 0⤋
REALITY!
This is the formula as a license mortgage finance.
You take your month income, divide it by two. Now what ever you come up with you can realistically pay more than half on debt and mortgage.
so if you make combine 5K a month gross. Then your debt and new mortgage combined shouldn't be over 2500.00 a month. Some lenders will take you to 55%.
Please see info at htpp://www.myfinancialcorner.com
2007-07-02 11:24:40 · answer #5 · answered by Anonymous · 0⤊ 1⤋
Not very realistic, unless you have magically saved up a huge down payment of like $60,000.
At that much money per year, you'd better off looking in the $100,000- low $200,000 range.
2007-07-02 11:22:20 · answer #6 · answered by Cookie On My Mind 6 · 0⤊ 0⤋
You should be able to qualify for about 200k. You can live in that area for that. Not new, but not too bad. Ask an agent to show you some properties, Madera is not too bad and I think it is pretty close.
2007-07-02 11:32:39 · answer #7 · answered by Landlord 7 · 0⤊ 0⤋
Ummm.....you are having an unnatural pipe dream. Given your combined income levels and credit history, don't even bother looking.
2007-07-02 14:51:55 · answer #8 · answered by acermill 7 · 0⤊ 0⤋