Am I dreaming or is a 400K house doable on 100K salary?

[Mortgage-Specialist]

I figured

[Anonymous]

Yikes!!! $2600 is more like 50% of my take home. This means living paycheck by paycheck and pray that nothing bad happens for the next two years. I will be curious to hear from people that have gone through this process!!!

[Anonymous]

There is that important acronym.T.I. The lender will go over two important things before qualifying you: backend and front-end expenditures. Being that you have little to no monthly expenses, make sure your property tax is manageable. You are in the northeast? Think of all the necessary expenses that fall outside the mortgage payment:light, heating, water/sewage/car payment, car insurance, food, etc. You MUST factor these things in (and the lender will before approving)--these are called the "back-end". The front-end means all the things you can't adjust: student loans, mortgage, etc.) If the back-end +front-end = a reasonable DTI (anything less than 45%) then you are set. Having additional income from your spouse or other possible cosigner would help siginificantly.
Best of luck.

[glovk]

We purchased a 469k house last year based on my wife’s 105k salary with 5% down.   She had no debt at the time so her DTI was clear.

Our property taxes are $7200 a year, for comparison sakes.

[AZEsq]

Ummmm. If someone quoted him $3700 for PI Alone on a $400K note, I’d say he needs a new lender!! That’s north of 6% unless you’re somehow estimating the entire PITI payment.

[VALoanMaster]

---

@AZEsq wrote:
Ummmm. If someone quoted him $3700 for PI Alone on a $400K note, I’d say he needs a new lender!! That’s north of 6% unless you’re somehow estimating the entire PITI payment.

---

That was the entire PITI payment for a 15 year fixed loan at 420K.

[Anonymous]

Me and my wife just purchased a new construction home for 433k in August. We have a combined annual income of 145k (2018). We used our 2017 income of $120k when we applied for the loan...I'm 36 she's 29.. We feel were a little passed the starter house stage and didn't want to buy a fixer upper. Living outside of Boston, Ma we were kind of in the same boat with high real estate cost. We bought with 65k down(15%). Financed 368k, with 5.1% interest. With an escrow payment of $720 for taxes and insurance built into our loan we pay $2725 a month. I bring home on average $6k a month after taxes. Even with the $2725 mortgage payment we are still able to comfortable live off just my income alone. We use my wife's income to pay my school loans. Have already paid them down from 67k to 35k since we moved in.. my student loans is our only debt outside of our mortgage.

[Anonymous]

Thanks MrFAKO, VA loan Master and Mortgage-Specialist.

I talk to one of the big bank mortgage laon today and they gave me a loan proposal without running my credit. I provided them with my mortgage score and other info, and they quoted a monthly payment of $2496 (Taxes: 401, Ins: 133.33 and MI: 120.33 and Mortgage $1841) per month. This is with 5% down @ 4.125%. Nowadays can you get better than 4.1%?

Thanks also to glouk and Cjohnson18711 that shared their experience. It reassured me that people are doing it and that I'm not crazy to go that route. I also feel like Cjohnson18711 that I passed the starter house thing. I just need to jump in but right now I'm kinda scared !!!!

[Anonymous]

I talk to one of the big bank mortgage laon today and they gave me a loan proposal without running my credit. I provided them with my mortgage score and other info, and they quoted a monthly payment of $2496 (Taxes: 401, Ins: 133.33 and MI: 120.33 and Mortgage $1841) per month. This is with 5% down @ 4.125%. Nowadays can you get better than 4.1%?

Thanks also to glouk and Cjohnson18711 that shared their experience. It reassured me that people are doing it and that I'm not crazy to go that route. I also feel like Cjohnson18711 that I passed the starter house thing. I just need to jump in but right now I'm kinda scared !!!!