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Answers (7)
- Denise Simon, "Denise A. Simon"
- Contributions:2
There are so many variables in qualifying for a loan. The best thing you can do for yourself is speak with a mortgage broker. You will be looking to qualify with a very small down payment at this point, so a broker will be able to tell you if there are programs that will fit your needs, or if you need to keep saving for a while. And explore leasing options that would allow you to save. That would also give you both time to explore together what it is you both want - and where you're willing to compromise.
- RealEstateConsultan
- Contributions:25
There might be some State or County programs as well.
FHA is a fantastic product with only 3.5% down, you will need to qualify though, so I would recommend start talking to a lender right away to see what your options are.
How about asking for "money" as a wedding present instead of a "toaster", that would be a lot more useful :)
Wrote an article about that last year.
FHA is a fantastic product with only 3.5% down, you will need to qualify though, so I would recommend start talking to a lender right away to see what your options are.
How about asking for "money" as a wedding present instead of a "toaster", that would be a lot more useful :)
Wrote an article about that last year.
- Erik Pearson, "SpringHillHomes"
- Contributions:36
As a relatively newly wed myself, don't overspend on your new home. Money troubles are the #1 cause of fights. Congrats.
- Gary Boyer, "Southland_Properties"
- Contributions:54
There are way too many variables in trying to make a decision like this. You can't do it as a general question and you certainly can't do it by using a formula on a web site. If you are serious and truly want to know, call a local mortgage broker to determine what you can afford. There are a number of new financing programs coming on the market every day. The large banks are limited as to what they can offer. That's why you need to talk to a small lender or broker. It can be done, you just have to find the right lender.
- Mike Shenkman, ABR, SFR, "Mike Shenkman"
- Contributions:8
It depends... You can but a home for as little as 3.5% down however, your credit and the amount of debt you currently have will be taken into consideration. Debt ration is the amount of debt you have (including the future mortgage payment with taxes and insurance) vs. the amount of income you make. Banks want you to have an adequate amount of left over cash per month when you buy a home, usually 55%. If the gross amount you and your fiancé have is $6,500, then you want residual money of $3,575 per month (or total debt - including mortgage payment - of no more than $2,925).
Add up all of your monthly credit payments and subtract it from the max payment you can have. A $300,000 home gives you a payment around $1,800 per month with todays current rates of 4% (approx.). This would require a down payment of $10,500 (3.5%). At $1,800, if you only have combined debt of $1,000 per month, then you would probably be approved for this mortgage (assuming credit and some other factors are clear). This gives you a basic understanding. It all really depends on how much money you have saved and what your current debt is. Feel free to contact me if you have any further questions or want this further explained.
Add up all of your monthly credit payments and subtract it from the max payment you can have. A $300,000 home gives you a payment around $1,800 per month with todays current rates of 4% (approx.). This would require a down payment of $10,500 (3.5%). At $1,800, if you only have combined debt of $1,000 per month, then you would probably be approved for this mortgage (assuming credit and some other factors are clear). This gives you a basic understanding. It all really depends on how much money you have saved and what your current debt is. Feel free to contact me if you have any further questions or want this further explained.
- Rchan81
- Contributions:73
I got married a little over a year ago and just closed on a condo last month. My advice, save money on the wedding to go towards your home. 1 night in your lives vs. however long you stay at the new home.
- wetdawgs
- Contributions:26854
Purchasing a house is like many other things, it is not an emergency. It is great that you are starting to develop a plan so that you can achieve your dream.
How much money is required as a down payment? FHA at the moment has 3.5% down required. There will also be closing costs and it is prudent to have a slush fund for home maintenance of several percent of the cost of the home so those items don't become emergencies. (It is not fun to have the furnace go out in the middle of winter).
Here's a link to play with "how much can I afford?"
Here's a link to the Zillow section providing a road map to mortgages.
These are starting points for basic education. A good lender can also be very helpful.
How much money is required as a down payment? FHA at the moment has 3.5% down required. There will also be closing costs and it is prudent to have a slush fund for home maintenance of several percent of the cost of the home so those items don't become emergencies. (It is not fun to have the furnace go out in the middle of winter).
Here's a link to play with "how much can I afford?"
Here's a link to the Zillow section providing a road map to mortgages.
These are starting points for basic education. A good lender can also be very helpful.
With very little down what can I afford with a monthly gross income of $6,500?
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