topic Re: What can I get? in Mortgage Loans

What can I get?

Anonymous — Tue, 08 Jan 2013 01:24:27 GMT

I make 12000 a year, my mid score is 649, no debt. Ive been employed 6 years same place, went from full time to part time due to having a baby. Taxes in the area are about 1300/yr and insurance about 1200 (max). I have 10-15k to put down. How much could I possibly borrow (looking for max 60k house)? Could I even qualify? Oh- I'm in Michigan.

Re: What can I get?

Anonymous — Tue, 08 Jan 2013 12:25:56 GMT

Bump

Re: What can I get?

MrChairman — Tue, 08 Jan 2013 13:03:08 GMT

A 60K loan with 0 money down will cost 262 a month with the lowest rates of 3.25%. And using your numbers for insurance and taxes, its another 250 a month. That's 500. And you said you make 12k per year which is 1K a month. I don't see you getting approved for a loan for 60K. And remember you will need 3-10% for a down payment depending on which loan product you choose. Lastly, you score will most likely put you in the 3.5% range as far as rates.

Re: What can I get?

Anonymous — Tue, 08 Jan 2013 20:21:04 GMT

The OP keeps trying. Guess they hoping for a better answer.

They are willing to put 10k down from another post which is almost 20% down, but even then the scores and income will be hard to qualify.

Re: What can I get?

tooleman694 — Tue, 08 Jan 2013 20:34:11 GMT

Iv heard people say, take your gross income and times that by 3 and thats how much of a loan you can get.

Re: What can I get?

Anonymous — Tue, 08 Jan 2013 20:42:43 GMT

My multiplier is like 3.7 so close to that factor. If I do the same thing to $12,000 gross, I get, $44,400 so still too low. Perhaps if she could bring $15,000 to the table but I heard that it is hard to get a loan under $50,000.

Re: What can I get?

Anonymous — Wed, 09 Jan 2013 00:49:32 GMT

Yes that is what I am wondering, how do I calculate. So if I multiply it I could possibly get 30-40 ? That is true I did hear it's hard to get a mortgage so low, but I'm hopeful. I also have the option to work more, I just don't want to until my daughter is older. If I got a cosigner do they look at their DTI also? I could have a cosigner, but they have a high DTI, so I have been assuming that wont work, even with better credit. I have a bit of time to work on things (financially and credit wise). I'm just trying to find out what the best route would be to do next. How is a 40 year mortgage calculated, as far as how much I can take out from what I make?

Re: What can I get?

tooleman694 — Wed, 09 Jan 2013 00:59:48 GMT

I wouldn't buy a home if I earned 12k a year. I would focus more on my career first.

Re: What can I get?

StartingOver10 — Wed, 09 Jan 2013 01:31:38 GMT

@tooleman694 wrote:
I wouldn't buy a home if I earned 12k a year. I would focus more on my career first.

Re: What can I get?

dabrian — Wed, 09 Jan 2013 05:48:14 GMT

Not trying to be offensive but I would increase my income before buying a house.

Re: What can I get?

Anonymous — Wed, 09 Jan 2013 07:46:16 GMT

I would suggest looking for a cheaper home. There are many of them in the state of Michigan which has a higher foreclosure rate than other states. Keep the faith. In time, it can be done.I hope this helps.

Re: What can I get?

Anonymous — Wed, 09 Jan 2013 11:38:02 GMT

I think that anything priced under $40K will be a hole in the wall. And many down payment assistance programs require a good inspection of the property. There was one house that we looked at that had a cracked concrete slab in the backyard and the realtor said that the CHFA program probably wouldn't go forth without that fixed. Luckily, we didn't like that home at all.

I agree with the others that you should work on your career first and go back to school if needed. I know you want a home of your own but you should be patient to get something you are happy with versus the only property affordable. This isn't the same as a car purchase. I would try also to look for options through Section 8 in your state as you may be able to get something 100K or higher with Section 8 assistance. You need to have enough income to take care of repairs and a $40K home is likely a hole in the wall that would require a lot of repairs and being a single mom on your income, I don't think that is a good fit for you as you would only have enough to pay the mortgage and that is it. You want a home that is safe for your baby.

You could also look for sale by owner properties where you pay the seller and he pays the mortgage and as the balance goes down on the loan and your income goes up, later on you can qualify for a mortgage for that property. Or try a rent to own property. But going out there looking for a mortgage right now on anything that is affordable, is not the best plan of attack.

Re: What can I get?

Anonymous — Wed, 09 Jan 2013 17:14:01 GMT

Actually there are nice starter homes that need no work here going for 40 they just go fast by investors , I'm only part time due to having a baby not even 20 hrs a week. Also my fiancé lives with me bringing in more money I just can't use him because his scores are low. We're paying 800 a month plus utilities here in a crappy apartment I feel I'm throwing my money away. I also make money babysitting but don't claim it, I am in college too still workin on a career but with four people in a small apartment paying much more than a mortgage would be I just want out of here, when my lease is up in May. Please stop judging when you don't know my life, we have plenty set aside and make more than enough to fix up also, my dad does handyman everything. I can stay here, I just don't want to. Our combined income is too much for sec 8. I went from 25 k a yr to what I'm at now, I was told by chase I pre qualify for a 60k home now but thank you all for your replies.

Re: What can I get?

Anonymous — Wed, 09 Jan 2013 17:20:57 GMT

I dont think any one was trying to judge you. In my opinion they were looking out for your best interest.

Either way I am glad and happy you found what you wanted.

Hope it all works out for you good luck.

Re: What can I get?

Anonymous — Wed, 09 Jan 2013 17:32:20 GMT

I am not judging you. I went off the info provided. You did not mention that you had a fiancé nor that you had extra money coming in nor that you were in college. All you said was I make $12,000 a year and I want a house. What kind of answer do you expect? I would still wait until you are married and can apply joint for the mortgage OR you can keep searching around. That is all we can say. We aren't going to search for a broker or a house for you. You have to do that on your own. Continuing to ask for an opinion on this forum is not going to get you a house. All we can do is give our honest opinions. Go find a nice $40,000 house and post pics after you close to prove us wrong.