Should I buy or wait?

[Anonymous]

With so many foreclosures on the market, I am thinking about buying a condo or townhome.  My average credit score is 750. My salary is just under 79K.  My monthly debt payments are $779.00 My problem is I have  some money saved but I would prefer to keep the money in my savings account for emergencies.  Will I have a problem getting a mortgage? Or should I wait a little while longer? 

[ShanetheMortgageMan]

Your credit looks fine, and down payments aren't always required depending on the type of financing you are going for.

How do your $779/mo of payments break down?

What sales price range are you thinking of buying in?

Those answers will determine if your debt to income ratio is OK or not.

Where are you buying?

That answer, along with the previous answers, will determine if FHA or USDA financing would be an option for you or not - FHA (with down payment assistance), USDA, and VA financing are the most common ways to get 100% financing these days.

[Anonymous]

Thank you for the response!  The $779 consists of a $400 car payment ( which will be paid for by November, $235 in credit card payments and $144 for student loan payments). I live in Maryland where  a decent condo or townhouse will run between $280K to $300K.  I am single with no dependents.

[ShanetheMortgageMan]

The biggest limiting factor you are going to run into is your debt to income ratio.  While it's not too high, it is close to being too high on a $280k sales price (assuming $4,200 for property taxes, $200/mo for the HOA fee)... however with your good credit scores you most likely will be OK for the $280k sales price, maybe a tad higher... but $300k might just be out of range.  Once the $400 car payment is paid off then $300k looks very realistic.