Can we qualify for a mortgage, with no money down?
My sister and I live in NJ, and rent is outrageous. We are paying approx 1900 in rent between both of our apartments. We would be 1st time buyers.
My credit score is poor around a 560. I earn 27,000 a year, and receive child support of 5,200 a year. My debt ratio is high 80%, mostly due to a student loan. My cc’s will be paid off within a month, bring it down to about 65%. I have had a bankrupcy discharged since 2001.
My sister has a great score, around 740. She makes approx 34,000 a year. I would say her debt ratio is at 70%.
Neither of us have any car loans. No late payments in the the 3 years.
We would prefer to buy a multi family house, so it would help mortgage/tax wise. A few that we are intrested in are priced approx 350,000. We would like to share a unit, and rent the other. According to similar rentals in the area, the rental unit would rent for approx 1400-1500 a month plus utilities.
Is what we are considering realistic? Or asking too much?
We do have money saved in the bank, only about 15k between the both of us. This is not to be touched – emergency cash only. We are not willing to put in on a downpayment or we will have nothing to fall back on.
We are spending a big portion on rent, and we would rather invest it in a home. Rent is like throwing money in the trash.
What would be an ideal loan amount that would be approved?