Financing in 19096>Question Details

Antbee, Home Buyer in California

I want to buy a home and can put down 20% or maybe 30%. I am looking at a house for $550.000, but my income

Asked by Antbee, California Sun Jun 7, 2009

is only 42,000 a year with $12,500 from Social Security. I want to pay about $2500 to $2700 a month on payments. Can this be done?

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14
Oh come on ... the question is 2 years old ... why bother! Besides, it's perfectly obvious that he/she can't afford those payments ...
0 votes Thank Flag Link Wed Aug 10, 2011
Hi - Have you considered moving to Florida. You can get twice the house at 1/2 the price! See what's available at http://tampahouse1.com. It's a great place to retire and live well.
Web Reference: http://tampahouse1.com
0 votes Thank Flag Link Sat Aug 6, 2011
There are still too many variables:
You will need to go the formal route and apply with a lender to get the real numbers.
0 votes Thank Flag Link Sat Aug 6, 2011
I think your 1st step is to talk to a mortgage lender and get prequalified. You don't want to spend time looking for a house, falling in love with it and finding out you can't afford it. Going the route of a for sale by owner or foreclosure won't matter. You still need that mortgage. The last thing you want is to buy a house you can't afford-it's one of the reasons there are so many foreclosures now.
Be smart, use professionals (mortgage and a REALTOR) to help you.
Good luck
0 votes Thank Flag Link Sat Aug 6, 2011
Antbee,

You would be wise to find a smaller loan amount. I think if you financed 200,000, that would be in your budget. That would put the payment around $1125 a month, not including taxes and insurance. But like said earlier, its best if you contact a mortgage lender directly, let them take a look at your entire situation and see what you are pre-approved for.

Do you think you can handle a monthly mortgage payment at $1125 a month?
0 votes Thank Flag Link Fri Jun 12, 2009
THANKS to everyone who responded.

I have now come down to reality and looking at properties (bank owned or for sale by seller) in the $350,000-420,000 range.

But, wondering if It is possible to find a LEASE/OPTION with a motivated seller? That way I can continue to make my funds grow, and build credit (I had negatives on my credit report, but have paid off all debts and do not even have a car note), so I would be debt free with the exception of the mortgage/insurance & taxes.

Or, what are the chances of finding a good property in an great neighborhood but one that needs fixing up? I am willing to renovate (slowly) if I find the right property.

Thanks again to all of you wonderful professionals~ Your input has really helped me to think about things.

BTW, I may be able to even come up with 50% down. Will that make a big difference?
0 votes Thank Flag Link Fri Jun 12, 2009
Hi Antbee

Your gross monthly income, including your social security, is $4375 - (I assume these are before tax figures). Even before taking out for taxes, you say you are willing to spend over 50% of that on PITI (principal, interest, taxes and insurance)????
No way........(as Suze Orman would say in her tv show - you are denied!!)

In my opinion, those numbers are way too high. Without even knowing your credit scores, I can't imagine that you would be approved for a loan of that size - especially in this economy.

Look for a house in a lower range. Speak with a lender to fine tune the numbers. You have a great downpayment, and will make some lucky seller very happy!

best wishes..
Debbie
0 votes Thank Flag Link Thu Jun 11, 2009
My dear friend, buyer you have $165k in the bank. In today's market you might be able to pick up a bank foreclosure or short sale. I advice you to get a buyer broker to represent you and let him do the hunting. Look you might get the dream house of your chose with o mortgage, now that is the American dream. Happy trails!
0 votes Thank Flag Link Thu Jun 11, 2009
Most likely cannot happen. You can not afford this home unless you put down 50%. Keep saving your money.
0 votes Thank Flag Link Thu Jun 11, 2009
Here are some numbers for you to look at. 550k purchase price, 20% down payment. I'm using a generic rate at 5.5% on a 30 yr fixed. Your monthly payment would be 2498.27 (this does not include taxes and insurance).

If you put down 30%, your payment would be 2185.99.

My bigger concern would be your debt ratio. If you make a total of 42k a year, thats roughly 3500 a month. Even if your payment is 2185, your debt ratio is 62%. Thats not including property taxes and insurance. To be approved, you need ratios around 40%.

I highly suggest contacting a mortgage consultant to see if your qualified for a mortgage.

Danny Castagna
Sr Mortgage Consultant
E-Mortgage Management
(P) 800-793-9633 ext 185
(F) 888-386-4071
http://www.emortgagemanagement.com
Web Reference: http://www.emmloans.com
0 votes Thank Flag Link Mon Jun 8, 2009
With 30% down, you might be able to do it if you have no other debt and your credit is excellent. You are right on the border line.
0 votes Thank Flag Link Sun Jun 7, 2009
Antbee,
Are you looking to buy in Montgomery County, PA? If so here are 2 names of mortgage officers that will be able to help you with the first step, getting approved, then I can help you find the right house!

Chris Holloway
Home Mortgage Consultant
Wells Fargo Home Mortgage
MAC M7502-011
118 Old York Rd
Jenkintown, PA 19046
215.572.4839 Tel
800.759.7935 Toll-free
215.852.5385 Cell
866.512.8460 eFax
christopher.holloway@wellsfargo.com
http://www.TheChrisHolloway.com

Christopher Fox
Loan Officer
Afleet Mortgage
542 N Lewis Rd, Ste 100A
Limerick, PA 19468
610-792-3922 Office
610-792-9246 Fax
610-842-8214 Cell
http://www.afleetmortgage.com/chrisfox
chris.fox@afleetmortgage.com

Please feel free to contact me directly if you would like information on houses in the Montgomery County area!
Have a great day!

Kimberly Collins, Realtor, ABR

"A Refreshing Real Estate Experience"

Keller Williams Realty Group
Cell: 610-476-7519
Office: 610-792-5900 Ext 8177
Fax: 610-792-8131

Oh, by the way I'm never too busy for your referrals!

Search the MLS -- for FREE! Visit http://www.Kimberlycollinsrealtor.com
0 votes Thank Flag Link Sun Jun 7, 2009
Hello Antbee,
Your questions depends on several issues. You have a substantial amount to put down, which is good in today's market. If your credit rating is good that will help, as well. Your first step is to get "pre-qualified". Talk with several mortgage lenders for comparisons for the best choices in rates, terms and points. That will tell you exactly what you can afford to pay and what the lender will allow you to borrow. This will determine your monthly payments, which should include principle, interest, insurance, and taxes. Beverly Weltzien, Realtor, Michael Saunders & Company, Venice FL, 941.223.0612, beverlyweltzien@michaelsaunders.com
0 votes Thank Flag Link Sun Jun 7, 2009
Hello Antbee,
I would love to know what County or State you would like to purchase in? Your next step would be to contact a Lender in your area. If you plan on moving to the Ventura County community in California. I would love to Assist you in your search samantha@camarilloproperties.com
0 votes Thank Flag Link Sun Jun 7, 2009
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