I need a no money down mortgage in NJ. I am 26 married with a combined income of around 140,000.?

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We also have two car payments which add up to 950 a month and student loans that add up to 1000 dollars a month. In addition we have to pay about 500 dollars a month in credit cards. I believe our credit scores are about 650 and 690 respectively. We are looking at houses in the 380,000 range. Is this possible? Thanks.

  1. Reply
    Real Estate Guy
    February 18, 2011 at 8:58 pm

    You should be able to get a mortgage.

    But the truth is, you can’t afford it.

    You make 140,000 a year and your are in debt!!! I’m guessing you have about $ 20,000 in credit card debt and your based on your credit scores, you having been paying your current debts on time.

    I would recommend waiting a year. Save every penny and pay off the credit card debt and save at least 5% down.

    Get a copy of your credit report and see what is on the report.

    You can get a mortgage today, BUT you have problems that you need to fix and if you don’t the new house will only get you deeper into debt.

    Fix the problems and then by a house. $ 140,000 is a nice income, but in NJ and with a $ 380,000 house, you will NEVER get out of the problems you have now.

    Look at other posts here and you see that they also made the mistake of getting deeper into debt before they fixed their problems.

    I’m sure that you have reasons for all this. But the bottom line is this. You can’t afford a house today. You can’t pay the bills that you have today and you have no savings. Fix it and then buy the house.

  2. Reply
    February 18, 2011 at 9:55 pm

    Personally I think you are too in debt to do this. Lets look at the numbers and try to crunch it.

    The total of your credit cards, student loans and car payments is $ 2450.00
    the cost of the mortgage, with taxes (I am figuring $ 10k in property taxes for the house as NJ is the highest property tax state) and $ 1000 for homeowners insurance. The total cost would be around $ 3400 per month for the house.

    That’s a total payout for both of around $ 5850 per month.

    You take home around $ 8000 per month with an annual salary of $ 140,000.

    That leaves you with $ 2200 per month for the rest of your expenses. Food, Car Insurance, utilities, cell phones, repairs, furniture, etc.

    I’d look at it this way, if you haven’t been able to save any money up to this point then will you have the extra money to put out?

    One stipulation here. If you two rent a house already, if your rent is more than $ 3400 per month then I would say go for it because you will be saving money. If your rent is less than $ 3400 per month then you need to ask yourself if you haven’t been able to have any extra cash up to this point, where will the extra cash come from to pay the mortgage payment?

    Lastly, another answerer suggested that you take a year to try and pay down the debt. I agree. If you got rid of that $ 500/month in CC debt or even paid off one of the cars you would have a decent amount of extra cash available to put into a house.

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