Can I afford a mortgage?

[CJIII29]

I am looking at getting and forecloser home, that someone left off paying, I am wondering could I afford a mortgage? I have a truck payment of $245 a month and some credit card debt of around a $1000. My income is $22,078 a year and I gross $1696 a month.

[Anonymous]

I think it's best to go through a first home buyers programs and see what they say, if you don't have a down payment they help out, plus foreclosures don't last forever and applying for a mortgage takes a while, and in your case where you don't have the full amount, you're more than likely better off looking for future potential but you have to have everything written out already.!

[CJIII29]

It will be sometime next year before I try to get a mortgage, I would like to pay off my credit card debt first.

[CH-7-Mission-Accomplished]

Can you buy a home where you live with a $500/month payment (including taxes and insurance)?  That is about what the underwriting standards would allow.  You would improve your ratios if you could refinance that car loan into a longer term loan to lower the payment.  If you can pay off the $1000, that would be good, too, but they are only going to calculate your payment on that at like $30/month, so the car payment is hitting you hard on your income -- it is more than 10% of your gross income.

It looks like you would probably need to find a mortgage of about $80,000 or less (payment is $393.55 @ 4.25% for 30 years).  Assume taxes at about $100/month (depending on your state) and maybe $50 for insurance?

Also, PMI would have to come out of that $500 payment if you need PMI.

In Seattle, $80,000 wouldn't even cover a down payment.

[CJIII29]

Around here in Montgomery,AL you can get a new 3 bedroom 2 bath house around $100,000 grand. I just got the truck loan in September.

[CJIII29]

APPROVING BANK: Avadian Credit Union

BUREAU PULLED: All three I think

CREDIT SCORE: 712

New/Used: Used

YEAR OF VEHICLE: 2008

MAKE: Chevrolet

MODEL: SILVERADO 1500 LT WORK TRUCK

MILEAGE: 68,000

RETAIL/LEASE: Purchase

AMOUNT OF LOAN: $13,309.80

TERM CONTRACTED:72 MO

APR/LEASE RATE: 3.5

MONTHLY PAYMENT: $245.13

ANNUAL INCOME: 22,078
DEBT TO INCOME RATIO: Low

[Anonymous]

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@CJIII29 wrote:

I am looking at getting and forecloser home, that someone left off paying, I am wondering could I afford a mortgage? I have a truck payment of $245 a month and some credit card debt of around a $1000. My income is $22,078 a year and I gross $1696 a month.   There is a bank who's mortgage department is located in Home near Birmingham.    With your income they can possibly help you and pay up to $4500 of your closing cost.    

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 There is a bank who's mortgage department is located in Home near Birmingham.    With your income they can possibly help you and pay up to $4500 of your closing cost. I sent the link to your inbox.       

[CJIII29]

Ok thanks!