Profile picture for annie58

home buying

I have good credit but short of down payment house price is 58.900 I only have 2,000saved. monthly income674.00 what advice do you have for me?Irealy want this housecreditis713 .
  • March 22 2011 - Chicago
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Answers (7)

Continue to rent.

Happy funding, Rudi
  • March 23 2011
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The Illinois Dept of Housing has a special program out right now to assist home owners such as yourself that will provide down payment and closing cost assistance. Go to ihda.org My firm isn't participating in this program yet. The program is called Smart Move. The website has a list of participating lenders on the website as well.
Basically they will provide you with a first mortgage and  a 2nd mtg up to 6k .  Minimum Credit Score is 620 for FHA/VA/USDA ,660 for Convnetional
Max Debt to income 45%
Buyer must contribute 1% or 1k of Purchase price which ever is greater must be a 1st time homebuyer, Household income and purchase price limits apply. Homeownership counseling is required.

To learn more about this podcut go to IHDA's website and go to smart move details. They have a list of approved and participating lenders on thier website or call thier office.

Then complete and application with a lender and see if you can qualify, they will be able to assist your credit situation. I think that thier must be a mistake on your request as you probably are making more than $674.00 oer month in income

  • March 23 2011
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Profile picture for wetdawgs
Advice?   Unfortunately it isn't what you want to hear.  You aren't ready to purchase.   While you've done a good job of saving more than 3x your monthly income, the house of your dreams is 7.3x your annual income.   A good target for searching is 3 to 3.5x your annual income, so the price is approximately twice what you should consider.

It is far easier to purchase a house, even in this very difficult lending climate, than it is to keep the house once you've purchased it.    Plan on 3 to 5% of the cost of the house per year for maintenance.  This is above and beyond mortgage, taxes and insurance.

Good luck.   Come up with a plan for home ownership (including increasing your income), go step by step through the plan and some day you may be able to purchase a home,.
  • March 22 2011
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Profile picture for Matt Laricy
It will probably be pretty tough to get a loan, but you can always call your lender to check. My advice would be to save more before you buy though.
  • March 22 2011
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Profile picture for SteadyState
George -

 What about the questioner's issue did you see that you advocate a non-down payment option and advise him to see a lender?
I am trying to understand what prompted you to encourage the poster to buy.
  • March 22 2011
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Profile picture for the_country_hick
With a monthly income of $674 you can not afford to buy a house.

Here is why. One day the roof needs to be replaced. You have to spend $3,500 on it. Then the furnace dies. It needs about the same money for a replacement. How could you pay for those things? Repairs could ruin your financial life.

Maybe you could get a FIXED RATE mortgage that would barely be affordable each month. An ARM mortgage would eventually reset and as it cost more each month you would be unable to make the payment. But when a serious repair comes up (it will) how will you be able to pay for that repair? Even minor repairs could hurt. What will you do when a $150 repair is needed? Will your income be able to handle even that small repair?

Have you considered the costs of heating, electricity, water, sewer, and so on that come with a house? They could get pricey. Speaking of price at your income I would not want to spend over $200 a month on a mortgage. There is just to little left (unless it was a typo and your income is larger than $674 a month).
  • March 22 2011
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Profile picture for gslow1
You need to talk to a lender and if you dont have down payment you can go FHA.
  • March 22 2011
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