what's the max I could potentially quality for

sports1965 · ‎11-15-2014

$40000 income and no debt

I am in florida

Thanks

Anonymous · ‎11-16-2014

http://ficoforums.myfico.com/t5/Mortgage-Loans/Do-I-qualify-for-a-mortgage-Info-that-is-needed/td-p/...

ezdriver · ‎11-18-2014

@sports1965 wrote:
$40000 income and no debt
I am in florida

Thanks

Based on the very limited info provided, here are some tools to help you figure out the answer yourself:

Gross monthly income is 40000/12 = $3,300.

37% of $3,300 = $1,221 [37% should be your maximum DTI calculated by dividing total monthly debt payments by gross monthly income].

$1,221 is the max TOTAL monthly debt payment that you may qualify for. In Northeast Florida, my buyers are spending about $7 per month in PITI for each $1,000 of mortgage. Therefore, using that estimate, you may qualify for $174,000 mortgage [assuming you have zero non-housing debt to service].

Hope this helps.

StartingOver10 · ‎11-19-2014

If you are in S Florida then I have lenders that will go to a back end ratio of 56.99% for FHA financing. Front end at 45.99% so it does depend on the actual lender for which you are financed. Also the $7/1000 is on the high side.

Now, I'm not saying that a payment of 45% of your gross income is advisable - because that is a heafty percentage of your income. It is a better idea to have a lower payment to not have that "house poor" feeling every month. So you will also need to figure out what your comfort level is for the purchase, which is generally less than your qualifying amount.

You would be better off contacting a lender directly to get an estimate. The issue in Florida is the homeowners insurance is a huge factor here. You could have a difference in your insurance of a couple hundred a month depending upon the wind mitigation factors and that will affect the amount of mortgage for which you qualify. For example: If the home you buy has a newer roof (2002 or newer) your insurance will be substantially less than if it is an older roof. Insurance is not a factor so much in other states, but it is here.

It makes a difference too if you purchase a home that has an existing homestead exemption - because the taxes are substantially lower (usually) when they are homesteaded. Find an agent that can help guide you though these hurdles and the agent will have a recommended lender for you.

ezdriver · ‎11-20-2014

The source of my $7/$1,000 of motgage is a PITI number calculated from my most recent home sales closing documents. I recheck that number monthly.

StartingOver10 · ‎11-20-2014

@ezdriver wrote:
The source of my $7/$1,000 of motgage is a PITI number calculated from my most recent home sales closing documents. I recheck that number monthly.

I'm not doubing your number EZ. After all you have Nationstar as your preferred lender - right?

What we are seeing here (all the way south of you ) is closer to $6/1000 PITI.