How much Mortgage LOAN could I obtain?

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Hi:

I’m trying to figure out how much would a bank be willing to lend me for my first house. I have no debt, I make $ 108K and I have managed to save $ 100K ($ 80K for down payment), My only expenses are $ 700/year for car insurance and $ 1200/year for medical insurance. I have no other expenses. Parents pay for everything else, until I buy a house. I live in a condo owned by my parents. How much house can I afford? Thanks in advance.

I make $ 30.000 a year self employed I have a credit score 720+ I have $ 20.000 to put down.

How much loan can I qualify for in Florida

9 Comments
  1. Reply
    jasonalcazar
    April 29, 2011 at 9:33 pm

    Car insurance and Med expense are NOT involved in your Debt ratio for a house. You make good money, Easiest way is 80k is 20% of 400k, you can afford 320k mtg. you will get the best pricing with 20% down. you can affor more but it’s up to you if you want to purchase as much as you can afford or if you want an affordable property. If you want to Max out, Depending on MI, taxes Insurance, Mello Roos, Hoa’s you can prob get qualified for 500-600k, also depending on county and Max loan limits to concider for best pricing.

    Hope this helps,

    Jason

  2. Reply
    Patrica
    April 29, 2011 at 10:09 pm

    The first error you want to stay away from when buying a home is not fixing your credit. It is amazing to see how many buyers ask for a mortgage loan hoping their credit won’t prevent them from having a loan. In order to not be in the situation of “hope and wait”, it is recommended you attain copies of your credit scores at least three to four months before hunting for a home. By doing this, if there are any errors you can correct them and if there are any legitimate factors that might hurt your score, you can work to repair them.

  3. Reply
    Archer87
    April 29, 2011 at 10:22 pm

    The 320K is correct. That is what you could afford. However not sure if that is a comfortable range. Depends on how much wiggle room for money you like to have.

    The bank told me they would give me $ 350K loan- but I can’t afford that. My house costed $ 185K. This is comfortable for me. (My husband and I also make a combined income of 100K.

    I also agree with the fixed rate on interest. Nothing will make you waste money faster than having a flexible interest rate. They can change it on you every year if they want- making what you pay a lot more than the house is worth.

    Use bankrate.com to find out what your monthly payment would be including the mortgage payment and interest (excludes insurance).

    Call your bank and see if they will give you an estimate on a loan?

  4. Reply
    curse08
    April 29, 2011 at 10:42 pm

    don’t worry about the expenses because your ratio’s are only based on your home and any other item that will show up on your credit report. if your parents are paying all of your bills they can show proof of that and you truely will have no debt. if you make 108k and have good credit you should have no problem obtaining a loan in the amount of 650K plus 100K down you should qualify up to 750K. Payment would be around 4k/month.

    That was based off of a 5% interest rate assuming 500/month for insurance and taxes

  5. Reply
    ladystang
    April 29, 2011 at 11:39 pm

    maybe $ 30k
    talk to a bank or realtor

  6. Reply
    the kid
    April 30, 2011 at 12:13 am

    Probably no more than 90K

  7. Reply
    Landlord
    April 30, 2011 at 12:34 am

    If no other expenses about 85k. That is pretty low income and it would be very difficult.

  8. Reply
    Because I Said So
    April 30, 2011 at 12:54 am

    it doesn’t matter what you qualify for, what matters is how much you can repay the bank! they will always approve you for 3-4x your income, which is ridiculous. that’s why the housing market crashed, because tons of people borrowed more than they could repay. you can only spend 35% of your net pay on your monthly payment that includes mortgage, taxes and insurance. for you that’s only $ 700 a month. which means you’re looking at very cheap houses, like under $ 100K but if you have 20% DP, it’ll keep your payment low and you can use that $ 20K cash to negotiate a good rate with the bank.

  9. Reply
    liveinmd
    April 30, 2011 at 12:56 am

    It depends on the interest rate and if you have any other debt, also the taxes and insurance for the property. Based on the income you state (which with self employed borrowers is tricky because you have to average the years together and, depending on what time of year, you may need to produce a YTD profit and loss which is also considered) you will qualify for apx $ 80k but that is a ROUGH estimate.

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