02-25-2009 10:43 AM
My monthly gross income is $3200. Is it possible for me to get approved for a loan in the amount of 200K. I live in Atlanta, GA. I want to buy my first home later this summer and it seems like the only thing holding me back is my salary. The only debt I have is my student loan of 10K. I have a freelance business on the side and that can sometimes bring in an additional income of up to 1K but that depends on the project. Any advice would be helpful. thanks.
02-26-2009 07:14 AM
I'm guessing probably not. Our income is $3700 a month with about $600 a month in debt, bringing us to roughly your income without debt. We were preapproved for $110,000. I think it would take a lot more income to get into the $200 range. If they include my child support received our income is $4000 and it only bumped us up to $130k preapproved.
I'm certainly not an expert, just going according to my own figures
02-26-2009 09:03 AM
The only type of home I can afford with 110K would be in the ghetto. I assumed since I only had 10K in student debt that I would qualify for at least 200K. I guess my dream of owning a home continues to get pushed back. The crazy thing is that I pay $975 in rent. I would much rather much pay that towards my own home.
02-26-2009 09:15 AM
Have you reported your freelance work on your taxes for last two years? If so then they will add that income and that will help you get more. But 200,000 does seem a bit of a stretch for your income. But worth a try.
Do you have your down payment and closing costs saved? If you have a down payment and find a forclosure or great deal you could end up with a 200,000 home for 150,000. Never know.
We priced out a 220,000 home and mortgage,taxes and insurance were 1520.00 at 5.5% interest. Closing costs are around 9000.00. We are military so VA loan is zero down. Figuring 200,000 would be a bit less the the above figures but not much.
02-26-2009 12:12 PM
Yeah i know, i feel you. It's not a good scene around here in that range either. We're holding off until i graduate in May. Our lender only requires 30 days employment coming right out of school so we'll be able to buy something nice then.
Why don't you go find an online mortgage calculator and double check just to be sure?
02-26-2009 12:29 PM
02-26-2009 12:36 PM
Well according to the calculators, you'd have to make roughly $55k - $60k a year with no debt to get approved for a $200k mortgage. And that will equate to a mortgage of probably $1500 a month, give or take depending on taxes, insurance, etc.
That's a huge jump in monthly payment from $965 rent. Ready for it?
02-26-2009 12:39 PM
02-26-2009 01:48 PM
Just a word of caution, having purchased my first house recently for $210,000, I would definitely do the math myself. I found in my situation that the mortgage broker was more concerned about getting me in the most expensive house. Going into the transaction, I had calculated what I would be comfortable paying a month (including mortgage insurance, property taxes, etc.). Some may disagree, but I'm firm believer in having adequate savings (i.e. cushion) to cover any repairs needed to for house. Plus I didn't want to be house "poor." I wanted to be still be able to travel and hang out with my friends. Owning a home is wonderful experience but as all home owners can attest to something is almost always going to break or need to be fixed. So when you are calculating what you can afford, I would recommend that you factor in repairs (i.e., deductibles) and any other leisure activites. Good luck with your home search.
02-27-2009 12:20 AM
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.