Understanding Mortgage Calculators/How Much Do I Qualify For

[Anonymous]

At some point next year I plan on trying to buy a home. I will be trying to use my VA eligibility so therefore won't have to pay PMI. I am trying to determine how much I might qualify for. My income is around $27,000 a year. Car payment is $253.00 and cc bill about $35 month.  The calculators are all over the place. I have had it tell me anywhere from $60,000 to $101,000.  That is a huge difference and makes the difference between buying or renting.  I know lots of things go into the loan decision. Typically what is the debt to income ratio the VA allows? I have read anywhere from 35% to 41%. Mortgage company rough guess was around $100,000.  This was without verifying any information I gave them. I would be financing for 30 yrs fixed rate.

[Anonymous]

Not 100% sure, but I think the max DTI for VA loans is 41% (someone correct me if I'm wrong). Your monthly income is $2250. 41% of that is $922.50. Take away the $288 in bills and you're left with $614/month for a mortgage. Rough estimates would put you near 95k max for a house. But that is a very rough estimate as I am not aware of HOA dues or property taxes in your area or your credit score or what your rate would be. Hope this gives you a little insight.

[Anonymous]

In my area where homeowner's insurance can run really high due it being a coastal county but property taxes are low, that $615 would get you about $65-70k unless you went far enough north in the county that you're above the hurricane zone. Then you'd be looking around $80k.

[Anonymous]

I was thinking around $95,000 as well. I do live a hurricane area South Alabama about 10 miles from the beach where I am now. I would be looking a little more to the north and more inland. The property tax here is pretty low and insurance is probably between $100-$150 month depending of course on price of home purchased. I was hoping if I qualified for $95,000 that I could look at house around $110,000 and make an offer. It's going to be really hard to find something that is decent in that price range. Rent keeps climbing and I will not be able to pay $1,000 a month after I stop working at retirement. I am trying to plan ahead. I don't want to buy a money pit and those would probably not pass VA inspection anyway. Does FHA or USDA allow extra money for repairs that may be needed?

[Anonymous]

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@Anonymous wrote:

I was thinking around $95,000 as well. I do live a hurricane area South Alabama about 10 miles from the beach where I am now. I would be looking a little more to the north and more inland. The property tax here is pretty low and insurance is probably between $100-$150 month depending of course on price of home purchased. I was hoping if I qualified for $95,000 that I could look at house around $110,000 and make an offer. It's going to be really hard to find something that is decent in that price range. Rent keeps climbing and I will not be able to pay $1,000 a month after I stop working at retirement. I am trying to plan ahead. I don't want to buy a money pit and those would probably not pass VA inspection anyway. Does FHA or USDA allow extra money for repairs that may be needed? I don't have all the specifics, but I know 203k loans are for home improvements. You may have to do a little google research to get a clearer picture but I do know these loans exist.

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Try a google search of 203k loans and you'll get a pretty good idea of how these loans work