Myself and my girlfriend are finally looking to purchase a first home,We have a combined yearly wage of $70 000 and $16 500 for a deposit,looking around the $275 000 to $300 000 (Hopefully) Has anyone recently financed a home with this sort of money and deposit? and was it easy or needed work?
Cheers Tony
2007-09-05 18:20:42 · 5 answers · asked by got.wake 1 in Business & Finance ➔ Renting & Real Estate
If you have good/decent credit, there will be no problems securing a home loan. However, the bank requires a 20% down payment which would be ~60K on a 300K loan. Since you don't have this to put down, your looking at having a PMI (Private Mortgage Insurance) payment added to your monthly mortgage.
2007-09-05 18:31:31 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Hi Tony, Normally the banks want 20% down; so on 300K that's 60K, and the payments will be out there, too. If you were to split up and are not married, there could certainly be complications. There are nontraditional ways to buy property, like a lease option, but the monthly payments still may not be doable. Just don't get into something where you will be over your head.Watch what kind of loans they offer you, too; some of them can be devastating later on. It would be good to sit down with a financial advisor, banker, cpa, tax person, or someone like that and have them advise you on the best way to go. Good luck to you both, Sharon
2007-09-06 02:00:39 · answer #2 · answered by starz 1 · 0⤊ 0⤋
I think the homes you're looking at are too expensive, but I could be wrong. The rule is that house payments should take up about 28% of your income, or 36% including all debt. The old rule was to take your total income and multiply by three. Maybe there are new rules. However, getting house-rich and cash poor is a real drag on your lifestyle. Also, unless you are going to get married, I think it's a mistake to buy real estate together. It's really hard to divide if you split up, and one person probably couldn't buy out the other. Oh, and this not a put-down, but grammatically you want to say, "My girlfriend and I."
2007-09-06 01:35:47 · answer #3 · answered by Katherine W 7 · 0⤊ 0⤋
Apply for a FHA loan (government)
with that income and loan amount, you and your girlfriend would both be on the loan.
no down payment required
you would only have to pay 3% (closing cost)
6.5 rate, one loan, no pre pay penalty
e-mail me, if you would like to know more about this
2007-09-06 04:28:54 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Normally the banks want 20% down. I found interesting information about your answer HOME LOANS & options here. http://all-debt-consolidation-loan.blogspot.com/2007/08/home-loans.html Good luck!
2007-09-06 21:10:28 · answer #5 · answered by Anonymous · 0⤊ 0⤋