Financing in Burlington>Question Details

Will, Other/Just Looking in Arlington, MA

How much home can I afford given my situation?

Asked by Will, Arlington, MA Mon Oct 19, 2009

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.

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2
Ken Lambert’s answer
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.
0 votes Thank Flag Link Fri Oct 23, 2009
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
0 votes Thank Flag Link Mon Oct 19, 2009
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