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08-22-2013 07:25 PM
I am now considering investing in purchasing a home versus renting or buying a condo.
A small place to call my own until a next chapter in my life begins.
My Fico Score is 765
I am a single female
I live in NY and I have savings of 10K and my salary is roughly around 75K.
I am pretty much discouraged in trying to get advice from people because I am told there is no way I will be approved to get a loan as being single with one income or with my salary I will never be approved for a loan. I am told I have to have a six figure salary to be approved.
I am aware its better to have 20 percent down on purchasing home which is ALOT of money. I am working towards it.
Is there any special advise or direction one can give me as to where to look (for beginners looking into buying a home) or am I just realistlically wasting my time.
Any starter help would be greatly appreciated.
I have read some of the comments with women, divored with children, or single with children but I am just single. No children.
08-22-2013 07:51 PM
I don't know why being a female or single would have anything to do with you being eligible for a home loan! Single women and men buy homes all the time and families like mine for instance only have one income and are still eligible. So as long as your credit is good and you have been at your job for awhile I don't see why you don't have as good of a shot as anyone. BTW FHA only requires 3.5% down. I would start by going to the bank of your choice and getting a pre-approval. Good Luck
08-22-2013 09:50 PM
Yeah your marital status & having or not having children don't impact what you can qualify at all. The only exceptions are with VA financing where there is a disposable income calculation, and USDA financing where the maximum amount of income your household can make is determined by the size of your household.
What it does impact is the amount of remaining income you have after your expenses are all accounted for... because not having children is cheaper than having children (unless you are in to that child labor thing).
The amount of income may or may not be enough to qualify for what you want to purchase - you didn't say what sales price range or what your other monthly debt payments are so it's impossible to say. If you have $3k/mo in student loan, car & credit card minimum payments then you are probably right, your income isn't going to qualify you for much of anything in any state. But if your consumer debt payments are low then $75k/year of income with a $10k down payment should be able to qualify you for something ($10k is 3.5% down on a $285k sales price, and FHA financing just needs 3.5% down). Home prices range quite a bit depending on where in NY you are living - i.e. NYC prices aren't the same as Buffalo.
Like has been suggested, stop listening to folks who are telling you "it's never going to happen" and speak to a mortgage professional who can analyze your situation to determine what you can qualify for... then you can tell those negative people what is really up. They may be right, but you'll never know unless you speak to a mortgage pro.
08-23-2013 08:13 PM
Thank you both for your kind and encouraging words.
Here are a few more details.
I have (IMO) limited debt including the below.
I have a remaining 6K on an auto loan in which I pay more the the amount owed every month.
I also have 2 credit cards both both owing give or take 1500.00 each. I aways pay more than what is owed.
I can pay the credit cards off.
I have car insurance 200 a month
I do not have any rental costs at this time. ( I am concerned this may also be held against me?)
That is pretty much literally the debt I have.
I have paid off everything else over the years.
I appreciate your helpful incite to you both.
I have been trying to build up my credit over the years and I am at the 765 rating.
I was thinking to "try" to get a loan of around 250K-300K the highest.
Not sure how far it can ge me living on Long Island but it is a start.
I am looking to go talk to someone.
08-23-2013 08:50 PM
How much are the required payments on your auto loan and the minimum required payments on the credit cards?
Your credit score is pretty good, so it looks like you'll have no trouble in that department.
08-24-2013 08:25 AM
Auto Loan is around 276 and I pay 400 every month
Credit Cards cards are roughly 40 per month. I usually pay 100 per month
Another Card is around 80 a month. I usually pay 150 a month
I originally got the cards just to pay build by credit back. I try to spend but also when paying pay more.
08-24-2013 10:10 AM
A $300k sales price appears would be the upper end of what you could qualify for, $250k should be very doable. It appears you are in pretty decent shape, although you may want to save up a little more though as NY has pretty expensive closing costs (you can always ask the seller to cover them, but that makes your offer less appealing).
08-24-2013 05:19 PM
I appreciate your helpful information.
I am going to try and save more.
Also pay more of the credit cards.
I am also going to try and read more of the threads here as well.
Thus far the only thing I have done is looked at a few homes.
The first thing I was told was-- did you get approved for a mortgage and I said no. I have not done that as yet.
I was told the first thing to do is to get approved first.
I am going to start reading the threads and making "the check lists"
I really really appreciate your incite and positivity compared to the others who keep telling me I am wasting my time.
I have to start somewhere.
08-24-2013 09:29 PM
You are welcome, good luck, and keep on asking questions.
08-25-2013 02:58 PM
I am a single female and I am under contract to have a house built. The house I am building is $260,000. At the time I did my application, I was making $60,000 per year, but I have gotten a small raise since then. I have no studen loans. At the time of application, I had two car loans and was told that I would have to pay off the smaller one, which I just did. My other car loan is $600/month. I don't have credit card debt - I pay in full every month. I have rent, utilities and car insurance. I am doing FHA and putting down 3.5%. The builder is contributing $2000 towards closing costs.
My suggestion is to pay off the credit cards and save as much as you can. Get pre-qualified and see what you can get approved for. When you find something you like, try to get the seller to pay for some or all of the closing costs.