How big a mortgage loan can I get??

[coachb123]

Here is the pertinent information:

Income : $9500/month

Debts : $2241 (all credit cards and loans)

Credit Score 650

Interest Rate?

[awp317]

Depends on a few more things. Not sure on interest rate but loan amount I may be able to help since im going through the same. 

Downpayment size. Putting any more down that minimum required? 

downpayment requirement (most conventional loans require atleast 20% down) 

DTI bank limits. Some banks have told me 25% others have told me 45% and then a lot have been at 30% or somewhere in between these. 

So your income is 9500 a month say a 45% DTI and you are putting 20% down. 45% of your salary is 4275 minus your current debt. That leaves you 2,234 dollars a month for a mortage. So say a 350k home, minus 70k down. Leaves you 280k mortage. with 1.25% property tax that comes to about 1800 a month. 

So I would say the most you will get approved for is 300k or so. 

[coachb123]

Conventional loan 20%???  Wow everybody I have spoken to said they can do conventional loans for 95% LTV with PMI

Down payment will be 5-10% at most.  DTI ratio 40-45%

[awp317]

oh intersting, I guess different banks require different things. I have been told minimum 20% down. But YMMV 

[DallasLoanGuy]

95% is available almost everywhere.

do you know property tax rates in your area? <= affects dti

[ReaLiLJ]

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@coachb123 wrote:

Conventional loan 20%???  Wow everybody I have spoken to said they can do conventional loans for 95% LTV with PMI

Down payment will be 5-10% at most.  DTI ratio 40-45%

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+1 I was thinking of buying my home Nov 2014, by myself, and was given this information as well. Others on the street don't know the harsh realities of owning a home, like the myfico community does. They been through the worse of the worse, and knows how it is to be at that ultimate high. The difference what I am trying to explain is that they are going to give you reality. Idk too much about mortgages but I know that I got a reality check on here, and I am glad I did because I would have not known what I was getting myself into. I was given the same information as well, but I had no idea, about PMI, property tax, etc, and how that could drastically bring your buying power down, my down payment was right with that 5% conventional but I understand why everyone tells you to at least have 20% to avoid PMI, and to give you more buying power etc. But that's just my personal experience. I am officially rethinking my plan, but I think you should do some more research before considering the 5% down as the interest, PMI, property tax, etc (others will chime in) on how that will affect you in the long run, and the goods and bads of it. I know it sucks but I have heard its better to be comfortable in your new home, then "house poor"

[coachb123]

These are only guesses but taxes $2500 and Insurance around $1200.