How much will I qualify for

[pghguy]

Hey guys!  OK I am looking to get a mortgage.  I have a discharged chapter 13 my scores are around 650 and my wife and I make about 95,000 a year.  We have virtually no debt except a vehicle and a few small cc that have very low utilization.  The discharge is only about a year old will we qualify for a mortgage and if so for about how much. 

[DallasLoanGuy]

what does virtually no debt mean?

what is the tax rate on the homes you want to buy?

[pghguy]

By virtually no debt I mean cc utilization is about 5%.  Wife also has some student loans that are about $10000.00, but they are stretched out over years and we make double payments on them.

I am not sure what you mean by tax rate?  Are you talking about what the taxes on a house would be?

[Anonymous]

I would think that you would qualify for more than what you need, but be smart! With a 650 score and 95K income I would think you would easily qualify for $350 of house.

The smart thing to do would be to buy a house in the $250 range and go FHA unless you have 20% to put down which then you should consider a 15YR mortgage.

The one thing for certain is that now is the time to buy. Both housing prices and interest rates have no where to go but up.

Good Luck, -D

[Anonymous]

With FHA how much am I required to put down?

[BrianB_The_Loan_Professor]

3% down. What Dallas was asking is what is the property tax base as it is an unknown. Your income and no debt (think monthly not utilization) will allow you to qualify for a payment in the range of 2800 or so a month (ball park) for fha. FHA allows up to 31% to be used for housing but will allow it to be higher if an automated approval is given.

Easier question is how much are you comfortable paying a month and how much ar ethe homes that you would want to buy.

Qualifying on paper and making it fit into a budget are not always the same things

Brian