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First time home buyer seeking advice.

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First time home buyer seeking advice.

Hi everyone.  I wanted to lay out my situation and am eager to hear any words of wisdom from all the experance that I've seen on this forum.  My work has decided to relocate me.  I'm currently in a rental home and I don't want to move more then once, and I don't want to rent agian.  This came on suddenly and I've very reciently bought a truck and a motorcycle that I wouldn't have done if I knew I was going for a mortage.  This leaves me with a small amount of cash on hand for a down payment.  My finances are as follows:

 

Middle FICO mortgage pulled today of 710.  My salary is 128,000 / yr.  My three loans currently total 2,000 a month.  After all the cash I put down on the truck and the bike, I have around $10,000 for a down payment.  I know I'll have to increase that number.  My posted credit card debt is around 3%.  I'm looking at a home in the $400,000 range.

 

I also have aditional income that I'm unsure if it will factor in.  I get per diem of $190 a day 7 days a week as long as there are no holidays or vacation.  It roughly adds up to $60,000 a year.  I also get reimburced for the truck I just bought through the IRS's FAVR program.  That adds up to around $1200 a month and covers the truck payment.  If I use all this, it adds 74400 to my income that is tax free.  This would total to over $200,000 and that doesn't count my bonus that I don't factor in because it's not guarenteed.

 

So my questions are as follows:

What might I get approved for?

How will the new truck and bike affect my mortgage?

Should I move forward with a pre-approval?  Or should I save for a year and come in with a larger down payment?

If I move forward can you recomend anybody to help with this process?

 

Thank you for your time, this process has my head spinning.

Message 1 of 9
8 REPLIES 8
Regular Contributor

Re: First time home buyer seeking advice.

Based on your down payment, you qualify for a home right aroung the 300k price range... Based on your income, you qulaify for a lot more than that. 

Message 2 of 9
Member

Re: First time home buyer seeking advice.

I understand I'd need more of a down payment, and I'll make that happen.  So assume I'll get 3.5% down, what income numbers could realisticly be used to calculate what I might get pre-approved for?  I've seen numbers here of 31% and 43%, but I'm unclear as to what is what and how much of my income I can use.

Message 3 of 9
Regular Contributor

Re: First time home buyer seeking advice.

When I respond, I am basing it off what I can do (at my specific lending instituton) which many times drastically varies from other lenders... Because you have good credit you, for an FHA loan, the FHA allows 45/56.9%  However, there are maximum FHA loan amount restrictions based on the county the property is in.. What county are you considering? 

 

If the loan amount isnt high enough for you when it comes to FHA, you can still do a conforming 3% down which can let you go up to 50/50 

Message 4 of 9
Member

Re: First time home buyer seeking advice.

Washoe County, Nevada.  What is the difference between the loan types?

Message 5 of 9
Regular Contributor

Re: First time home buyer seeking advice.

FHA max loan amount in that county is 412,850   FHA debt ratios can allow for much higher than 31/43. Can go up to 56.9% 

 

 

HUD website for max FHA county limits

https://entp.hud.gov/idapp/html/hicostlook.cfm

Message 6 of 9
Member

Re: First time home buyer seeking advice.

So you believe I can move forward with pre approval for a home around 400k even with the two brand new loans? What should my next steps be?
Message 7 of 9
Regular Contributor

Re: First time home buyer seeking advice.

Yep... You just need a formal pre-approval letter so you can be presented to the realtor

Message 8 of 9
Member

Re: First time home buyer seeking advice.

I apped for pre approval to DCU today.  I'm also talking to another bank later.  Heres to hoping!

Message 9 of 9
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