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With 65k annual income how much can borrow from Bank ?

Contributor

With 65k annual income how much can borrow from Bank ?

My income only 65k before tax ,and my total debt is about $900.need to buy first time home buyer .
I used different mortgage calculator , and got different answer .
Hope someone can help .
Thanks
10 REPLIES
Regular Contributor

Re: With 65k annual income how much can borrow from Bank ?

Your income is pretty similar to mine, i would guess it would be about the same range as long as you look at fha. So somewhere between 200-240 would be my guess
Moderator

Re: With 65k annual income how much can borrow from Bank ?


sharagim1 wrote:
My income only 65k before tax ,and my total debt is about $900.need to buy first time home buyer .
I used different mortgage calculator , and got different answer .
Hope someone can help .
Thanks

^^^This number is different depending upon the program you select (FHA, VA, USDA, or conventional). Also, it is different for the following reasons:

  • the interest rate used to calculate your P&I
  • the property taxes - the higher your property taxes the smaller your allowed mortgage 
  • the homeowners insurance for that specific property - in high cost states this can be a high figure which cuts down on your mortgage
  • HOA fees, if any

The LO calculates a max monthly payment you can make according to the debt ratios allowed by the loan program. If you have HOA + High property taxes + High homeowners insurance, you reduce the amount available for your mortgage P&I.  Initially the LO will use average figures but refine it with the specific selection of a particular property.  

Contributor

Re: With 65k annual income how much can borrow from Bank ?

Thanks for replying,
Only 200 to 240k?!
I live in California Bay Area close to San Francisco, there is no way can get any even small apartment, condo , with this price
Starting price is 350 to 375k,
any other option available to get more borrowing from the bank ?
Thank You
Valued Member

Re: With 65k annual income how much can borrow from Bank ?

A 400k mortgage with 20% down would be about $2000/month. Add your $900 debt to that and you won't have much left over. Good Luck!
Citi Simplicity $7800; Chase Freedom $3500; Capital One $2700; Sears Mastercard $3000; Lowes $4000; Paypal Credit $4600; Amazon Credit $2800

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Regular Contributor

Re: With 65k annual income how much can borrow from Bank ?

With your income it might mean that ownership in your area might be a bit too expensive. You dont want to be stretched so thin you have nothing left to save for repairs or life events. You really have two options, hold off until you have more money, or if you really want to get into it, get a cosigner. Government programs like FHA may require the cosigner be a resident if their income ia required to qualify.
Contributor

Re: With 65k annual income how much can borrow from Bank ?

I just had conversations with broker and he said you will be qualify for 350k and Aldo government programs only help you small amount of %5 down payment or closing cost .
I really don't know what's going on why I am getting different answer ? He did math and said 350k and even more .
I don't know I have to ask some other brookers too .
mortgage calcuter should tell you only one number to everyone .
Moderator

Re: With 65k annual income how much can borrow from Bank ?


sharagim1 wrote:
I just had conversations with broker and he said you will be qualify for 350k and Aldo government programs only help you small amount of %5 down payment or closing cost .
I really don't know what's going on why I am getting different answer ? He did math and said 350k and even more .
I don't know I have to ask some other brookers too .
mortgage calcuter should tell you only one number to everyone .

No, ^^^ that isn't correct.  It is different for everyone because gross income is different, current debt load is different, down payment is different (min amount required is based on sales price - but you can put down more), taxes and insurance is different.  

 

If you are going to a legitimate experienced, knowledgeable lender and he said $350k based on your financials (that s/he reviewed) then believe that broker.

Regular Contributor

Re: With 65k annual income how much can borrow from Bank ?

Yea definitely use brokers info as they are more familiar with your income/situation. Be aware that you can/will be approved for more than can realistically be accomplished on a healthy budget
Contributor

Re: With 65k annual income how much can borrow from Bank ?

Yes , I have to
The one other question I have is every broker ask me to fill the applications and run my credit
Is this good idea ? After run credit score will be drop , they are saying for accurate information about your loan amount approval we need to do it
For example if 3 different broker , run my credit at one month , every time my score will be drop or just one time ?
Again thanks for help