I want a 160k house and I'm a 1st time home buyer who makes 40k a year and has a credit score of 600-650?

Question

What are my best options to afford this house and what will my note look like under 100 percent financing? And explain 1st time home owner to me

Answer 1

Your best option is to not get a 160k house. It is too much on your income. Figure out your housing payment with the 160k with 100% financing, add in insurance and taxes and pay the difference between that and your rent into a savings account for six months. That will simulate the payments. If they are too high, you've gotten some savings and learned a lesson the easy way.

$160,000 at 6% (a good rate that I am not sure you'll get) over 30 years is $960 per month. In most areas taxes are about 1.5% (could be high, could be low), so figure $2400 per year (or another $200 per month). Let's also assume $100 per month in hazard insurance and another $125 per month for PMI (private mortgage insurance since you aren't putting down 20%). Your monthly payment is going to be around $1385 per month which is over 41% of your gross monthly income. This house is out of reach for you financially.

good luck!

Answer 2

What part of the country do you live in? Bottom line is that you make certainly enough income to afford this house, and all the details regarding finance, interest & earnest are relative. Find a reputable broker.
Secondly, make sure the house you admire has been legitimately assessed by a licensed professional - so any potential problems are not completely unexpected.
Third, completely keep in mind the state of America's economy. This is heavy stuff and things are/have been spiraling towards a renters market, so BE CAREFUL.
Peace, and happy home-coming. :)

Answer 3

If you have a credit score of 640 you can get it done full doc, meaning your income will have to meet guidelines with w-2s or tax statements. For 100%, if you qualify, your rate can be as low as 6.375%. You don't have to be a first time home buyer for this program but it won't hurt you if you are. If you want to know more about it you can look here: http://WeFixRates.Com

You can also look into FHA or Fannie Mae financing. With FHA you would need at least 3% down but you can get 100% with Fannie Mae. Again, you can get more information at the link above.

Good luck

Answer 4

I just bought a $200,000 house with $60,000 a year income. We have a 30 year fixed at 6.1%. Our credit was worse than yours, you have so many different loan options as a first time buyer. DO not settle for anything more than 6.1%, you can get it! Don't get an arm either! I would fill out your request on lending tree, then wait until the next day when you will get a bunch of phone calls from brokers. Tell them plain and simple what you want. 30 year fixed at 6%. Tell them you won't settle for less and you will keep looking until you find it. You will eventually find a program that gives it to you. Trust me!
Good luck!