How much home can I afford given my situation?
I'm thinking about purchasing a home in Burlington in the next year or so, something large enough to accomodate 4 people, so maybe 3 bedrooms or larger. I currently own a condo in Arlington which costs ~$1800/month which includes PIMI and Condo Fee. My gross yearly income is $80k, my credit score is 750 , and I have no debt. I estimate I can rent out the condo for ~$1000 a month. For personal reasons, I'd like to have the new mortgage financed in my name only, but the people I will be living with would contribute $1000 a month to housing expenses. Under these conditions, how much could I get in financing? Would a lender take into account the potential rent income of the condo and the "unofficial" contributions of my housemates? Thank you.
Hi William- Good questions.
Generally, the lender will not take into account "boarders"/ roommates- even though that will help you out in reality. So, you'll have to qualify on your own.
You have excellent credit- so that is good.
On a $80K yearly income, my ballpark of the most you would qualify for is a $325K loan. You would need to put down at least 3.5%, for an FHA loan. My guess is you could find something in Burlington, or Woburn, for that price for a 3 BR place. If I can help you any further, please call or email me.
Thanks and good luck,
Ken L.
William
The lender will take into consideration the rental income of the condo, although the -$800 hit you will take will lessen the amount of home you will afford. I can easily pre-approve you, at no cost to you. At that time we can discuss your income from your house mates.
Thanks William
Paul
Didn’t find what you were looking for? Ask a question!
Ask a question
|
|
|
|
|||||||||||
|
|
|
|
|
|
Fair Housing and Equal Opportunity