@salsa34 wrote:
Car loans $0
Student loans $0
CC's will be paid in full by May '09
Loans $0
my major monthly expenses currently are childcare $700 and rent $880.
I assume they do not consider child care costs, right?
Message Edited by salsa34 on 03-10-2009 09:38 AM
Correct. They include child SUPPORT obligations, but not childcare costs.
Ginnie Mae has a calculator on their website to determine how much house: http://www.ginniemae.gov/fha2_prequal/intro_questions.asp
Plugging in $45K alone, it returns something like sale price of $139K. That uses some broad assumptions like national average, 6% rate, etc. You can then enter some more specific information by clicking the Detailed Estimate link and entering your state/county, a user-defined interest rate, marital status, # of dependents, and reserves available at closing, all of which impact the amount it says you can afford.
As an example, and extra $1K available at closing can increase the maximum sale price the calculator returns by $25K.
