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I want to purchase a condo in southern California. I'm hoping to get a loan for about $450,000. What kind of income do I need to qualify for this?

by timothy.anderson678 from Lake Forest, California. Apr 21st 2017 Reply


Larry Gray (lgray_312_247)
#560 ranked lender in California - 1,127 contributions

I have to concur with Dan Paladin that it is impossible to do you justice in understanding where you might stand with regards to qualifying for a $450,000 loan amount. If you had little to no debt, you have to appreciate the numbers Mike Cuervo put out an example of a hypothetical person who has a very good credit history, job history, proper debt to income qualification and necessary assets.However, there are always different personal situations and differing first time buyer homes and options to fit your personal situation. I provide a lot of down payment/closing costs assistance though not everyone qualifies. I get an even lower rate for borrowers who qualify as first time buyers falling within certain income brackets. The down payment is just 3% in those instances. If you needed to obtain an FHA loan for your high balance loan and 3.5% down payment then you might be looking at qualifying at $6500/month minimum income . That would be a $465750 purchase price, $2120 monthly principle and interest, $485/mo property tax, and estimated $90 a month for homeowner's insurance. That is for a house and not a condo (included mortgage insurance too). If you add the HOA dues mentioned at $275 (pretty low)... that would mean no $40 homeowners insurance instead of $90 and minimum monthly income likely needed of $7000/month.

Apr 21st 2017
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 7,802 contributions

Much more info needed to answer your question.. In order to quote you, we would need to know the property details.. price, property taxes, Association fee, Homeowners insurance, and a very extensive "Condo Questionnaire" to determine if the project itself qualifies.. Then, we have to look at you as a borrower.. How much you have to put down? Whats your current monthly debt? What about your credit scores?, etc, etc, etc.. As you can see, this is not a simple question to answer without all the info.. The good news is that a competent loan professional can do a quick 5 minute interview and tell you exactly how much you qualify for. If you would like, I can offer you this service. We do not charge for pre approvals. I'm a preferred Lender with Arizona and California being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com NMLS# 226347 / RPM Mortgage NMLS 1541014 / AZMB0121893

Apr 21st 2017
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Mike Cuervo (mike@loansbynorthstar.com)
#1301 ranked lender in California - 7 contributions

At 4% rate (4.20 APR) conforming HB loan you would be looking at $2150 principal and interest. Assuming 20% down payment (No MI), prop taxes $470 mo and $275 HOA an income of $6500 will do it provided there's very little monthly installment or revolving debt payments. I am located in Laguna Hills and if you want more information please call me at (714) 273-1083 - Mike

Apr 21st 2017
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Dan Paladin (dpaladin)
#1 ranked lender in California - 417 contributions

More info is needed as income is not the only factor. Debts are considered as well.So to quote what income is needed is very difficult. Also having an accurate HOA payment is part of the qualification process.Feel free to contact me for specific details and discuss accurately what income would be needed. 562.254.5616

Apr 21st 2017
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Larry Gray (lgray_312_247)
#560 ranked lender in California - 1,127 contributions

I have to add an important consideration to the concern about whether there is sufficient income to buy a property that seemed maybe within reach in a neighborhood that you wish to live in. If it seems you likely will fall short, without ever actually finding out what you qualify for, keep in mind some loan programs allow you to include a non-occupant co-borrower to qualify. Generally, that would be a parent, sibling, Uncle, Aunt or cousin. Even a dear old friend is acceptable. Now, you certainly want to be comfortable with whatever monthly payment you make, but will you be renting a portion of the home to a friend, etc.? Deducting the monthly interest paid out from your taxes adds significant savings, and of course you will probably be paying $500 to $600 a month towards the equity in the home as well. When I qualify borrowers, we look to what maximum loan amount they qualify for, but also to what they really feel they can be comfortable paying monthly as well. Maybe what they realize is their maximum purchase price falls short of what they had hoped for, but a careful search could still get you a starter home you qualify for. There are many developments built for some years now that included a certain number of below market affordable homes. Those can show up just as they did for a client of mine who could never have afforded the home otherwise. There are different reasons besides as an investment that people want to own their own home and it is well worth going for even if it does not seem you will qualify for the amount you felt you needed to. Any questions do not hesitate to contact me.

Apr 22nd 2017
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Elva Wormley (ElvaWormley)
#781 ranked lender in California - 26 contributions

Hi Timothy, the income required depends on several factors, such as the purchase price, the amount of your down payment, the HOA dues, the type of loan, the other debts you may have, etc. Please feel free to give me a call to discuss your options. I can be reached at 408-615-8500.

Apr 23rd 2017
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Bert Carpenter (BertCarpenter)
#39 ranked lender in Arizona - 1,815 contributions

As you can see from the answers you have already received, the answer is not necessarily a simple one. The easiest way to find out what you will qualify for is to talk to a licensed Mortgage Professional. I would be happy to help you. Reach out to me. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ Licensed in Arizona (AZLO0911876 / AZBK0902429), Washington (WALO40586 / WACL3087) and California (CADOC40586 / CAFLL6036566). We are licensed by the CA-DBO under the CFLL and CRMLA. Loans made or arranged pursuant to CFLL or CRMLA license. ~ www.LoansA2z.com ~ 888-889-9950

Apr 24th 2017
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