Qualifying for mortgage amount

[kleahc]

Copied this from my other thread, because I think it got burried.

Question about qualifying for amounts: My income is $47,000 this year, employed at the same company for 4.5 years (salary has increased 2% per year). I have zero current debts, but poor credit in my past (670 now, but has been as low as 500) and no reserves (a small savings acount with about $2,500 in it, and a retirement account that cannot be touched prior to age 55) and the down payment is being gifted to me by my parents...

Most houses I have looked at (online) have been in the $170,000-$200,000 range. Am I anywhere close to that level? Down payment will likely be between 10-15%.

Thanks!

[edcampbell613]

Not knowing the area you are looking into counting in property taxes and HOI

need more info

[kleahc]

Whoops! (Thanks!)

Credit.  I have a 680 credit score after spending two years rebuilding after a series of medical emergencies left my credit in the toilet.

Income.  My salary is $46,000 per year. 

Source of income.  I am full-time employed and have been there for 4 years.

Monthly debt payments.  I have no monthly debt payments, but three credit cards with $0 balances, no delinquencies on any of them.

Employment: Have worked at my current job for 4.5 years, and have worked in my field for 13 years.

Assets/Reserves.  I have a 401k (but it isn’t much) and I am getting the money for the down payment as a gift from my parents. They are willing to provide up to $25,000.

Location.  Asheville, North Carolina.

Property.  Single Family home.

Value.  Most of the houses I have looked at are around the $160,000-$189,000 mark.

Occupancy.  Primary residence.

Transaction Type.  This would be a first home purchase.

[edcampbell613]

No worries, you in my neck of the woods.

You should be able to qual up to 1750-1800 per month, @ 190,000 sales price 3.5% down

using the worse case scenario FHA product you are at 1400-1500 per month, Convention loan will be less per month, I just wanted to show you the worse case out there.

Great job time and income for what you are looking for.

Great credit score.

We actually have a conventional 97% LTV loan out there for low to moderate income like you fit into. This loan product also has reduced MI

[kleahc]

That makes me feel much better. Thank you!