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How much income would I need to make with a 680 credit score in order to obtain a homeloan for 200k?

I'm in Arcata, CA (NOrthern California, but the only progressive town so I'm going to stay in Arcata.)

Homes are around $200k, and I'm working on getting my income level up... what should I be aiming for if I want to buy in Arcata- home loan style- with 680 credit score?

  • October 02 2012 - Arcata
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Answers (5)

Profile picture for user8493787
Wow, that was a wealth of information and help! Thank you Ms, Polack for the word on searching for the right brokers. Ms Jensen, thank you so much for spending so much time explaining it out for me. I appreciate the estimated figure. Also, I didn't know that brokers & bankers have such a wide range of fees! I'll be careful there. Leslie Raymond, that was awesome you threw another figure in there for me that is easy to understand. I have under $2000 in debt.... but I will need a new (used) car soon, so I'll have about another $6000 or so shortly. I'll keep that in mind. Thanks also to Matt, for responding so quickly, and for a great bit of info: well put, easy to understand. I need to charge more, work more, or something. :) I really appreciate having the opportunity to have questions answered here... I can do this!!
  • October 02 2012
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Profile picture for Ofe Polack
Have a word with at least two mortgage brokers who can advise you what you need to do to get the best possible loan.  The best of luck in progressive Arcata, CA!!! 
  • October 02 2012
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Hi, 

If your only talking about your mortgage payment and you  do not have a significant amount of debt, your income will need to be about $4,000.

You should be able to qualify for an FHA loan and current rates are definately less than 4%. 

I highly suggest you interview more than one loan officer and probably a few realtors.  

Every one is different in how they work. 

I know one loan officer that charges about 1% of the loan amount as his fee, but another loan officer charges 2.5%.  It is interesting how each loan officer can do this I believe it depends on if they are a broker or banker. 

I also know a bank of america loan officer and their time to close a loan is very long.   

You have a front end ratio and a  back end ratio.  This is based on your items that are on your credit report. 

Typically the front end can go up to 38 or 41% this is your mortgage debt only  principal interest taxes insurance and hoa.  Then you add your back end debt and it should not go above 50% but each loan officer  / broker is different. 

If you can get a referral to two different loan officers and let each of them know your shopping you should get a good idea of fees. 

Additionally your fees will also be different. 

Good luck
  • October 02 2012
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As Matt said its more than just income to qualify. The gauge is about 2.5 times your income. BUT, you also must include all other debt which may lower your purchase price. 

  • October 02 2012
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Profile picture for Matt Hiatt
Your credit score is good, so that is not an issue. On how much house you can afford, lenders go by debt to income ratio, so it is not just how much money you make, but what are your out going payments such as car, student loans, child support, credit cards, ect. With our current low interest rates, you can also buy more home price than normal. I would contact a good mortgage broker (sorry, I work the Phoenix market, so I can't recommend one for you) and see what they can work out for you.
  • October 02 2012
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