First time home buyer

[Anonymous]

Hi, I am looking to buy my first house this year in order to take adavantage of the $8000 tax credit.  I live in Illinois and make $40,630 a year.  My total minimum payments each month to credit cards is $418.  I have a student loan that I pay $50/month on but I have less than 10 payments left and I wasn't sure if this was counted.  My credit scores are 766 and 745.  I'd like to know about how much of a home I could afford and if I could possibly qualify for a house that costs $135,000.  I am looking at a FHA loan since I will be receiving the 3.5% down payment from my parents as a gift.  I would also like to know how soon I should start the process.  I would like to pay more on my credit cards so I can borrow more but I don't want to wait too long since I have to close by 12/1. 

I think I provided enough information but if I need to add anything else, please let me know.  Thanks for any and all help you can provide.  These forums have been a wonderful source of information and advice for me.  

[Anonymous]

---

@Anonymous wrote:

Hi, I am looking to buy my first house this year in order to take adavantage of the $8000 tax credit.  I live in Illinois and make $40,630 a year.  My total minimum payments each month to credit cards is $418.  I have a student loan that I pay $50/month on but I have less than 10 payments left and I wasn't sure if this was counted.  My credit scores are 766 and 745.  I'd like to know about how much of a home I could afford and if I could possibly qualify for a house that costs $135,000.  I am looking at a FHA loan since I will be receiving the 3.5% down payment from my parents as a gift.  I would also like to know how soon I should start the process.  I would like to pay more on my credit cards so I can borrow more but I don't want to wait too long since I have to close by 12/1. 

I think I provided enough information but if I need to add anything else, please let me know.  Thanks for any and all help you can provide.  These forums have been a wonderful source of information and advice for me.  

---

The minimum monthly credit card payment is a killer.  Your student loans most likely wont count but is there anyway to reduce your cc payments in half or better.  I believe the tax credit allows you to close on 12/31/09 to get it but not sure.  Also check to see if you qualify for any  downpayment assistance grants.  Check the following link

http://www.ihda.org/Default.aspx

[Anonymous]

When we were initially preapproved we had $45k income and $650 monthly debt it yielded $110k @ 6%

When we bumped income to $48.5k income with $650 debt it yielded $135k @ 5.5%

I think you're in the ballpark but you may need to lower some of that credit card debt. Have you played with the online calculators at all?

[medicgrrl]

It's very well possible that you would qualify for $135,000.  It really depends on how much the real estate taxes are in that area.  Just using the cc payments you would qualify for a mortgage payment of $970.  Principal and interest at 5% would roughly be $725, add another $100-$110 for MIP and homeowners insurance brings you to about $835.  So if taxes are less than $135 you should be ok.  If this property has homeowners dues than that has to be considered in the qualifying payment also.  The student loans probably won't be counted. 

[DallasLoanGuy]

---

@Anonymous wrote:

  I would also like to know how soon I should start the process.  

---

I would think that tomorrow wouldn't be too early.

 

[Anonymous]

You must close on the home BEFORE 12/1/09.  To get the $8,000.00 tax credit.  It is not the 31st of December but the 30th of November.  I keep seeing differrent dates but you have to purchase on or before the 30th of November if you close on the 1st of December you are too late to take advantage of the credit!

[Anonymous]

My situation has changed a bit since my last post.  I still make 40,630 and my credit card payments are now about $400 a month.  I currently rent an apartment and am a first time home buyer.  My fiance own a home right now and I was wondering about the two of us going in on a loan together.  She won't be moving in with me right away due to a few things and we have to sell her house as well.  She makes 50,000 a year and has 200 a month in credit card/loan payments.  She also has a 1050 a month mortgage payment.  Is it possible for the two of us to go in and get approved together?  How does her current mortgage affect our chances?  We are looking at a house that is 133,000. 

Like I said, I will be living in the house on my own for a few months while we sort some things out so she won't be selling her house when we buy.  I will still be receiving a gift from my parents for the down payment and we both have excellent credit.  My scores are in the mid to upper 700s and hers are up there as well.  From what I understand, I can still qualify for the first time home buyer tax credit since we are not married and will not be getting married until next summer. Thanks for you help and I will provide more information if necessary.