I'm looking for a place for around $100,000 but using the 28/36 system that I read online about, I'm no where near eligable. Does anyone know a lot about purchasing a home that could give me some insight?
peace
sean
peace
sean
Can you buy a house only making $32,000/year
- Thread starter AdamDuritz99
- Start date
50 yr mortgage and u got urself a home!
well interest rates are at all time lows so now would be the best time to lock them in
well interest rates are at all time lows so now would be the best time to lock them in
Mr.IncrediblyBored
Lifer
- Jun 18, 2000
- 11,191
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- 126
About half way down the page
The thing is, I really wouldn't have a problem paying 1,000/month but with that scale all i'm eligable for is like a $43,000 home.:disgust:
peace
sean
JEDI
Lifer
- Sep 25, 2001
- 29,391
- 2,737
- 126
banks will give you a morgage 3x your annual salary, assuming you have no other debts.
but maxing out means you will be living on peanut butter and jelly for a couple of years, unless you take a 2nd job, or get a raise.
i should know, i did that (3.5x my salary, no debt). i did not have a good time for the next 2 years till i got another job at higher pay. and dont go into credit card debt after you buy the house. if you cant handle living to the bare minumum in order to buy the house, dont buy it
but maxing out means you will be living on peanut butter and jelly for a couple of years, unless you take a 2nd job, or get a raise.
i should know, i did that (3.5x my salary, no debt). i did not have a good time for the next 2 years till i got another job at higher pay. and dont go into credit card debt after you buy the house. if you cant handle living to the bare minumum in order to buy the house, dont buy it
Well, if you have great credit you could always use a stated-income style niche mortgage. This is also known as a 'no income verification' mortgage. It requires a very good credit score (>740) and usually converts the PMI found in a normal mortgage (convention) to a pseudo-second interest rate. Also, because this is one that falls into a 'covered mortgage' its usually with a higher than normal interest rate.
For instance, let's say that you were able to get a loan for $100K at 6% with nothing down and PMI was the equivalent of another 1.5%. In an NIV loan, that rate would be +8% plus the pseudo-PMI still being 1.5%. I have a friend in this situation right now. He got his mortgage when the rates were about 7.25% two years ago. His rate is 10%. But, when you remove that pseudo-PMI rate it was like he had a mortgage at 8.5%, or 1.5% above the rate for a conventional mortgage.
Who uses stated-income loans? Well, these kinds of loans are typically used by those self-employed, or in sales, etc., where predicting their yearly income was difficult. But, this kind of loan can also be used by individuals that want to buy more home than the traditional front-end/back-end ratios (28%/34%) would allow for.
So, it all depends on several factors in determining you own personal situation. I know of one site where they have calculators, www.mortgage101.com and I've used them to compare amortization schedules for refinancing considerations.
For instance, let's say that you were able to get a loan for $100K at 6% with nothing down and PMI was the equivalent of another 1.5%. In an NIV loan, that rate would be +8% plus the pseudo-PMI still being 1.5%. I have a friend in this situation right now. He got his mortgage when the rates were about 7.25% two years ago. His rate is 10%. But, when you remove that pseudo-PMI rate it was like he had a mortgage at 8.5%, or 1.5% above the rate for a conventional mortgage.
Who uses stated-income loans? Well, these kinds of loans are typically used by those self-employed, or in sales, etc., where predicting their yearly income was difficult. But, this kind of loan can also be used by individuals that want to buy more home than the traditional front-end/back-end ratios (28%/34%) would allow for.
So, it all depends on several factors in determining you own personal situation. I know of one site where they have calculators, www.mortgage101.com and I've used them to compare amortization schedules for refinancing considerations.
you could always go for a less expensive home that needs some "work".. buy a cheap house in a good neighborhood (houses around you cost more)
then invest some time and sweat to upgrade and fix the house..
first home we bought . terrible smelling shag rug, older home, unfinished basement, unfinished "dormer" attic -
tore out the rug..bingo! hardwood floors underneath
finished off the attic space with carpeting, plaster, paint
cleaned up the yard
sold it 2 years later for a profit..moved to a bigger house as our income improved..
do not over extend yourself..
leave yourself a income cushion..expect unexpected things to popo up that will require cash..
do not live beyond your means
remember..your also going to have to pay for closing costs, insurance, property tax, new furniture...drapes...etc..
then invest some time and sweat to upgrade and fix the house..
first home we bought . terrible smelling shag rug, older home, unfinished basement, unfinished "dormer" attic -
tore out the rug..bingo! hardwood floors underneath
finished off the attic space with carpeting, plaster, paint
cleaned up the yard
sold it 2 years later for a profit..moved to a bigger house as our income improved..
do not over extend yourself..
leave yourself a income cushion..expect unexpected things to popo up that will require cash..
do not live beyond your means
remember..your also going to have to pay for closing costs, insurance, property tax, new furniture...drapes...etc..
I think here in SoCal you can buy a large refrigerator box for about 100k. Prices here seem to be at the top of the market for now and hopefully go down.
$100k house on a $32k salary might be stretching it.
I'm sure the mortgage payment #s look attractive, but unless you have $20,000 to put down, tack on another $75-100 a month or so for mortgage insurance. And then another $75-100 for taxes. And then another $75-100 for insurance. So you're at somewhere between $225-300 over the "p&i" (principle and interest) amount, which is the big # that you'll see displayed everywhere.
I figured a $160,000 house will run me somewhere around $1500-1600 per month, after everything is said and done. Can you really afford $1000 a month house payments on a $32k salary?
I'm sure the mortgage payment #s look attractive, but unless you have $20,000 to put down, tack on another $75-100 a month or so for mortgage insurance. And then another $75-100 for taxes. And then another $75-100 for insurance. So you're at somewhere between $225-300 over the "p&i" (principle and interest) amount, which is the big # that you'll see displayed everywhere.
I figured a $160,000 house will run me somewhere around $1500-1600 per month, after everything is said and done. Can you really afford $1000 a month house payments on a $32k salary?
God NO!!!!
That's just my based amount I make. I do a lot of overtime which brings me closser to 40 ish.
Though I am assumming that I will make less than $45,000/year untill i get out of school. I'm premed right now so I got like7-8 more years to go.
Well, when/if i buy a place I want to have 10,000 but it's looking more like 7-8 grand. I'll be paying off my car soon and have no other bills besides car ins (750/6months), cell(45/month) and 1000 on a CC which i can take care of fairly easy if it becomes a hinderance for a loan. So ~1000/month seems doable to me. Thanks for the link THX1139. Any and every advice is appreciated.
peace
sean
*Edit* I lived my whole life with a brother and sister. I'm single now so i'll probably rent a room out. i'll be careful...very careful with that.
Freejack2
Diamond Member
- Dec 31, 2000
- 7,751
- 8
- 81
Remember when you move from an apartment you have to pay for everything. That water bill, property tax, school tax, snow removal, and lawn mowing that the landlord paid for, you have to pay for now. Make sure you add that to your monthly expenses.
Well I bought one without any problems making 19k a year gross but then house prices around here are in the crapper. You can get a nice little 2br for around $30k but I wanted a garage and yard so I had to spend $40k 
. I just went and talked to the bank and asked them what I could do. I ended up doing a FHA loan with 0 down, actually I walk out of the signing with a check for $300.
. I just went and talked to the bank and asked them what I could do. I ended up doing a FHA loan with 0 down, actually I walk out of the signing with a check for $300.My brother and his wife, got a loan for ~$85000, though they are building the house themselves. They dont make more than $35k combined per year. They'll be paying ~$50 less than the rent of an avg 1000sqft 2bed/2bath apartment, and the house will be 1600sqft 3bed 2bath.
Do I suggest going 3x's your income. No, Id only suggest twice your income, 3x's is stretching yourself thin.
Do I suggest going 3x's your income. No, Id only suggest twice your income, 3x's is stretching yourself thin.
Where?! Vegas is cheap, but not THAT cheap.Originally posted by: thedarkwolf
Well I bought one without any problems making 19k a year gross but then house prices around here are in the crapper. You can get a nice little 2br for around $30k but I wanted a garage and yard so I had to spend $40k
I was looking at houses last year when I moved here, and I almost bought one, but I chickened out at the last minute because I hated my job. Now I'm just waiting until I see something so great that I have to have it.
how the hell can you afford to pay $1k a month if you make 32k a year?
assuming you only get 15% taxes taken out that leaves you with 27.2k
how can you you afford to pay 24k a year towards a place to live?
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