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Low Income, decent credit

I want to purchase a home and am considering a small condo or something along those lines. I currently make about 28k a year and I have a loan ($420 per month). My credit score is about 690 to 700. Think something will happen? by gcab758986 from Phoenix, Arizona. 12 days ago Reply


Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,371 contributions

The 'down and dirty' way to look at buying a home is that you can generally afford about 4 times your yearly income. So $28k X 4 = $112,000 home. I suggest contacting a mortgage broker in your area. Give them a full application, and let them zero in on your personal options. For loans in MN, WI, and SD, visit me at www.StPaul-Mortgage.com

12 days ago
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William J Acres (William_Acres)
#2 ranked lender in Arizona - 7,683 contributions

Yes.. but not a condo.. Based on the limited info you provided, you would qualify for about a $700 per month housing payment.. This includes principal, interest, taxes, home owners insurance, mortgage insurance and any HOA fees or Association fees..and all condo's have "Association fee's".. so you purchase a small condo but the association fee is $250 or $300.. which means you have $400 to $450 for a mortgage payment.. or about a $60K condo.. not a lot to work with there.. But if you look at a single family home.. then you could qualify for a $110,000 home.. Still not a lot to work with, but at least your closer to reality then going with a condo.. Also, for condo's in the $60K range, most all projects wont qualify for financing since there a whole set of additional guidelines associated with condo financing.. and most projects here in metro Phoenix area do not meet the more stringent rules.. If you would like a more detailed review of exactly what you would qualify for, I'd be happy to look at your complete loan profile and advise you.. 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

12 days ago
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Larry Gray (lgray_312_247)
#3 ranked lender in California - 1,122 contributions

I like Joe Metzler's way of illustrating the "down and dirty" way to look at buying a home! That is because it gives you at least some idea without really knowing much of what we as mortgage consultants need to know to be more accurate about what you qualify for and in understanding where your comfort level is...even after determining what your tax break might be on the mortgage interest paid each month. Obviously you will be paying money towards principal too...which is more money not thrown away in rent! the $420 a month could be considered if qualifying at the top allowable debt to income ratio...knowing that at some point that debt to income rato will drop dramatically along with that additional monthly debt payment.

12 days ago
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