Getting a Mortgage 26000 a year...

[OnOurWayHome]

I was wondering if there is anyone here who has gotten approved for a mortgage while making 26000 a year??? I am a stay at home mom and my husband works fulltime. We qualify for VA loan but would consider other loan types if it would get us into a home. And the only other debt we have is a credit card with a 15 dollar a month payment and a student loan at 25 dollars a month.

ETA:  Even though we qualify for the VA loan we also have $7500 to use for a down payment.  And we live in NC.

[DallasLoanGuy]

wont get you much..... maybe a payment of $700 or so(includes taxes and insurance)

i dont know what you can buy there for that.....

[axxy]

On a cheap house, taxes and insurance are likely to add up to less than $100 per month.  So, if she can spend $600 on principal and interest, how much can the total price be?  There might be some houses that cheap available there, but they might need some work.  If they're good enough to live in, the work can be done whenever they get the money for it.

Someone figure how much the total price can be if the principal and interest are $600 per month.

[StartingOver10]

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@axxy wrote:

On a cheap house, taxes and insurance are likely to add up to less than $100 per month.  So, if she can spend $600 on principal and interest, how much can the total price be?  There might be some houses that cheap available there, but they might need some work.  If they're good enough to live in, the work can be done whenever they get the money for it.

Someone figure how much the total price can be if the principal and interest are $600 per month.

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If you are going to try to back into a payment, you have to get a realistic estimate for property taxes and insurance. Personally I have never seen taxes and insurance total as low as $100/month but that is because of where I am located and the high insurance rates we have here in Fl. .

But back to getting the approx loan amount: the formula would look something like $700-mortgage insurance-property taxes-building insurance-HOA fee (if applicable)-flood insurance (if applicable)= remaining balance divided by the mortgage constant for current market rate at 30 yrs and that will yield a pretty good estimate of the maximum amount you can finance.

Assume the rate is 4.25% fixed for 30 years, the mortgage constant is $4.92 per $1000

Assume this is an FHA loan with the monthly MIP at 1.35% (ignore UFMIP for the calculations for now)

Assume this property is not in a HOA community so no HOA fees are due

I have no clue what the OP's property taxes or insurance would be - but I'm sure the OP can find out and do the calculations to determine a rough purchase price.

OR, the OP can contact a lender in his area to do the calculations for him for free

[OnOurWayHome]

Hi, Everyone,

Thanks for the responses.  Our property taxes are not very high here at all (at least not to me, I'm originally from NJ)

I copied this exactly from my area's website.  

2013-14 Property Tax Rates
Location	Rate
Charlotte	0.4687* per $100
Cornelius	0.24* per $100
Davidson	0.35* per $100
Huntersville	0.2825* per $100
Matthews	0.3175* per $100
Mecklenburg County	0.8157 per $100
Mint Hill	0.27* per $100
Pineville	0.32 per $100
Police Service District	0.1937 per $100
Stallings	0.215 per $100
Real Estate/Personal Property Interest date is 1/7/14.  Taxes must be paid prior to this date to avoid interest.

Homeowners Insurance would be about $50/month. (I went ahead and got a quote from USAA)

So using the Property Tax for Charlotte and assuming we don't live in a flood zone, as I would avoid that, so low flood insurance premiums.  My husband and I have already decided to avoid HOAs.   I'm thinking that we would be able to qualify for around $140,000.  Does that seem correct???  

Can someone check this for me.  *Fingers Crossed*  This would more than cover the amount we were hoping to spend.  

Thanks again for everyone's help.

[Odiseous]

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@OnOurWayHome wrote:

Hi, Everyone,

Thanks for the responses.  Our property taxes are not very high here at all (at least not to me, I'm originally from NJ)

I copied this exactly from my area's website.  

2013-14 Property Tax Rates
Location	Rate
Charlotte	0.4687* per $100
Cornelius	0.24* per $100
Davidson	0.35* per $100
Huntersville	0.2825* per $100
Matthews	0.3175* per $100
Mecklenburg County	0.8157 per $100
Mint Hill	0.27* per $100
Pineville	0.32 per $100
Police Service District	0.1937 per $100
Stallings	0.215 per $100
Real Estate/Personal Property Interest date is 1/7/14.  Taxes must be paid prior to this date to avoid interest.

Homeowners Insurance would be about $50/month. (I went ahead and got a quote from USAA)

So using the Property Tax for Charlotte and assuming we don't live in a flood zone, as I would avoid that, so low flood insurance premiums.  My husband and I have already decided to avoid HOAs.   I'm thinking that we would be able to qualify for around $140,000.  Does that seem correct???  

Can someone check this for me.  *Fingers Crossed*  This would more than cover the amount we were hoping to spend.  

Thanks again for everyone's help.

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$7500 down against $140k, is roughly 5%. While there are some lenders that will do a 5% down conventional loan, you have to do your homework to find one.

I managed to a conventional loan with only 3% down through Golden One Credit Union. That was about a year ago, so I do not know if they still offer the 97% LTV loan. I checked the Charlotte area, and found some Co-Ops, where it appears they share a building with another credit union. 

Calculating the difference in those tax rates (between lowest & highest), at 4.25% interest rate:

The FHA calculator puts you somewhere in the $125k - $135k range.
http://www.fha.com/calculator_afford

The VA loan calculator says $149k - $155k.

http://www.valoans.com/calculator_afford

Note: My math may be off. So double check for yourself.

Also, their are other things to figure in. For example: I heard a rumor that FHA requires 2 inspections.

[StartingOver10]

2 inspections is a lender overlay.

Do you mean two appraisals?

Sometimes this is required by FHA if the property was a resale occurs between 91 and 180 days after the seller acquires the property (sometimes called a flip) AND the new sales price is 100% or more than the price the seller paid for it. The seller will have to provide his list of improvements of the property to the appraiser (improvements/repairs and costs associated with each one).

[OnOurWayHome]

Thank you again, for all your help... If we go VA we won't need a down payment at all but i would use it just to cover any difference between what we qualify for and what we spend but with either of those amounts we would be able to get exactly what we need...So thank you again.

[liandur]

Whoa---on my cheap little $70,000 home taxes are around $260 a month and insurance is around $70.......you can go to your county's website to look up property taxes and get a better idea of what they will be. All that depends on your area taxes.....5 miles and a lower rated school district away and property taxes on a home like mine would be less than $100.....but don't expect that they will be.

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@axxy wrote:

On a cheap house, taxes and insurance are likely to add up to less than $100 per month.  So, if she can spend $600 on principal and interest, how much can the total price be?  There might be some houses that cheap available there, but they might need some work.  If they're good enough to live in, the work can be done whenever they get the money for it.

Someone figure how much the total price can be if the principal and interest are $600 per month.

---

[axxy]

My property tax and homeowner's insurance are each between 400 and 500 per year.  My situation is fairly common.  My homeowner's insurance is from State Farm and my property tax gets a homestead deduction.  The Zillow Zestimate of my house is approximately $93,000.