How much $ do I need to make for a $700K home loan, 100% with a 680 fico?

Answer 1

You really haven't given us enough info to give you a really accurate answer. I'll give you the ballpark though. 100% financing on a $700k loan puts you in a place that most lenders don't want to go to today because Fannie Mae and Freddie Mac can't buy those mortgages. No down payment also increases the bank's risk. A 680 FICO doesn't put you in the elite credit score category either. All of those risks will come at a price. Let's say all the added risk is worth 75bp (most likely worth more than that, but we'll estimate on the low side).

The Principal and Interest on a 30-yr, fix 7% rate loan is $4657 a month. Real estate taxes can vary from below 1% of value to 3-4% of value every year depending on where it is. Let's assume this is one of the cheaper areas in the country and it's 1%. That's $7000/yr. in real estate taxes which is another $600 per month. Now we're at $5257 per month for your housing payment. Let's say insurace is only $1200 per year, that's another $100 a month and we're at a grand total of $5357 per month for your housing payment.

Ok, let's also assume you have no other installment debt. No car loans, no credit card debt and no student loans. Conservative bankers would like your total debt ratio to be 28% of your gross on the housing payment and 36% for total debt service. Let's say you can still find an aggressive lender who would let you go to 40% of your gross income for a housing payment (that is pretty nuts, but let's assume). You would need a monthly income of $13,400 or a yearly of ~$161,000.

Lots of those numbers were assumed in your favor, so that would be an absolute MINIMUM.

If I use 7.5% for the loan and 2% real estate taxes and 28% of your monthly gross it comes out to be an annual salary of $255,300!! You need a lot of money for that loan!

Answer 2

Jumbo loans are requiring AT LEAST a 5% down payment.
100k would probably be good BUT you havent disclosed your monthly debt obligations!