How Much Would I Qualify For, Looking for FHA

[qtbird77]

Income - $6793 per month

Auto Loan $515 per month

Credit Cards- Paid in Full Monthly

Student Loans - $149 (In Deferrment)

Scores (595 EQ/621 EX/ 669 TU)

[BrianB_The_Loan_Professor]

Welcome to the boards

Make sur eyou dont have  a balance showing when the credit is pulled or it could possibly skew the numbers a little

Looking at the income vs. debt

$6793 x 43% -$2920 (max allowed for all debts - can be higher but this is a safe number)

This leaves $2257 assuming the student loans have to be counted

This puts you in the ball park for a 275k - 300k loan amount

You will need to know the limits in your area - they may cap at 271k if it is not a higher cost area

If the student loans are in deferment for a minimum of 12 months they wont have to be counted and may allow you to buy more

Make sure these numbers fit in your overall budget

what you can get and what you can afford arent always the same

Brian

[qtbird77]

Thank you. I do live in a high cost area, California.

[BrianB_The_Loan_Professor]

LOL 

yeah you do

Where are you located? I live in the East Bay area 

the loan limits likely wont be an issue anywhere in this state

Brian

[qtbird77]

Roseville, Placer County

[ShanetheMortgageMan]

If you opt for FHA with a 3.5% down payment your absolute max sales price will be around $425k (assuming your county's loan limit goes that high, use the https://entp.hud.gov/idapp/html/hicostlook.cfm to check).  With conventional financing and 5% down you would be looking at an absolute max of about a $315k sales price (conventional has lower debt ratio limits).

[BrianB_The_Loan_Professor]

Loan limits arent a problem Placer caps at $474,950 for a single family

My numbers were very conservative - like I shared you can possibly get more - but you have to have a solid file to get over that 43%

[qtbird77]

Low 300's is what I am hoping to qualify for, since that is the going price for entry level houses in the area that I am interested in. I'm still building a solid down payment, and have a lease that does not expire until Aug 1 of this year, so I have some time.

[BrianB_The_Loan_Professor]

low 300's shouldnt be an issue

Better to have enough left over every month than to be house rich cash poor

Sounds like you have plenty of time -

The more you can save the better your file will look in underwriting

Amazing how much that area has grown in the last 20 years - I grew up in the Yuba City area and back then Rocklin was mostly industrial - now its thuge  - it's also he best place to stay if you want to play at the Casino and not pay their crazy prices for a room......we catch a lot of the summer concerts there

Brian