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Answers (11)
- James Bailey, "JamesBailey_Meriwest"
- Contributions:7
The best way to know if you qualify for a home or not is to get pre approved through your lender. Once they have a complete application, a lender can determine very easily if you will qualify or not because they will look at your entire financial profile. Also, based on your income, you may qualify for state/local programs that help 1st time homebuyers out with down payment assistance, closing cost assistance, and or monthly payment assistance. Your local lender should be aware of these programs and should steer you in the right direction.
Good Luck and feel free to contact me if you need any additional information.
- Sef Gonzalez, "Sef Gonzalez"
- Contributions:226
Where are you trying to move to? Depending on the area, there may be some city assistance programs. For instance in Fort Worth you can receive up to $14,999 in down payment and closing cost help.
- Scott Butcher, "Central TX Expert"
- Contributions:109
iNguyen,
First off, your best bet is to speak with a mortgage professional. That said, your right on the edge of qualifying based upon my quick math. My worry for you is that the $380/month car payment will push you over the Botom Debt to Income ratio (PITI plus all other monthly liabiliities) allowable for an FHA loan. Also, FHA loans also offer the most lenient DTI ratio's, so if FHA won't work then nothing will unless your income increase or liabilities decrease.
Do you have the ability to refinance your current $380/month car payment to lower the monthly payment? Local Credit Unions are great resources for this use.
Regarding First Time Homebuyer programs you would be eligible for the MCC credit which would help with your situation.
Good luck!
- JP Piccinini, "JPEXITBROKER"
- Contributions:28
INgueyn,
There are several first time home buyer programs out there that help with the purchase. Let me know if you want to get started and I can put in contact with a lender that will make it happen for you.
JP
There are several first time home buyer programs out there that help with the purchase. Let me know if you want to get started and I can put in contact with a lender that will make it happen for you.
JP
- iNguyen
- Contributions:4
Thanks for the replies. As for other debt i have no credit card debts and a car loan that is $380 a month. I have bout $200 going into roth ira and life insurance and $100 for cell phone. As for my credit score ive just always paid my cc bills and only big debt is the car loan. I also saw a flyer for first time home buyer assistance which help out with closing and down payment. If I cant get that then id have about $5-6k for closing and down payment.
- Al Rodenburg, "Al Rodenburg"
- Contributions:27
FHA loan at 4.75%/est. APR: 5.554 with 3.5% down should be OK, depending on: a. any other debt you may have and the property taxes on the home (cost). But, on the face, it looks do-able.
- sunnyview
- Contributions:25139
According to the calculator I saw, you would not qualify for a conventional loan at 4.6% for 118K unless you have a substantial down payment. Zillow has calculators here that might help. They put you being able to qualify for 91K with nothing down and no debt. I believe that unless you go USDA or VA that the minimum down would be about 3.5%.
Run some numbers and then you might want to talk to a lender to see what advice they have. Just remember it's not what you can qualify for, it's what you can actually afford to pay every month. They're not necessarily the same thing.
Run some numbers and then you might want to talk to a lender to see what advice they have. Just remember it's not what you can qualify for, it's what you can actually afford to pay every month. They're not necessarily the same thing.
- Mark Nehs, Wisconsin, "WI Mortgage Lender"
- Contributions:250
You will need like no other debt or very minimal to qualify. Property taxes, insurance, and mortgage insurance are calculated in as well.
Regarding closing costs:
Higher costs = lower rate and conversely lower costs = higher rate
As lenders we can offer you either and let you decide what makes the most sense for your situation.
Regarding closing costs:
Higher costs = lower rate and conversely lower costs = higher rate
As lenders we can offer you either and let you decide what makes the most sense for your situation.
- JP Piccinini, "JPEXITBROKER"
- Contributions:28
iNguyen, you could easily be able to afford the home. My guess with your credit score you have a very low debt to income ratio and that's generally the biggest determining factor to how much of a house you can afford. I would begin by getting pre-qualified for a mortgage through your bank and then contacting a REALTOR to help you with the home search. After you find a home you can shop around for the best fees and rates through various lenders your REALTOR or BROKER can suggest. Good luck my friend and congrats on the new exciting purchase!
- Sharon Lewis, "Sharon Lewis"
- Contributions:3917
My best suggestion to you, talk to your local credit union or bank to find out if you can get pre APPROVED and for how much, then talk with a realtor and tell them what you are looking for.
Good for you for buying a home....interest rates are amazing right now.
- Sean Ogilvie, "California Mortgage"
- Contributions:173
Need a little more information from you:
- Do you have any other debts?
- How much you are looking to put down as down payment?
- Assuming this be your primary home?
I make about $25,000 a yr and my credit score is 740. Is it possible to get a loan for a $118k home?
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