Home Buying in Champaign>Question Details

Mike, Home Buyer in Champaign, IL

Can I afford to buy a house, and if so, how much?

Asked by Mike, Champaign, IL Fri Jun 14, 2013

I am 26 years old, and will be making about $29,000-$30,000, with take home pay around $1,600-$1,700 per month. Here are some other factors:

- I have no debt
- I have about $6,000 in my savings accounts
- I have contributed $20,000 to a Roth IRA account, and can withdraw an additional $5,000 or so without penalty because of the first time home purchase reason, so I have about another $25,000 available here
- There is a pretty good chance I can get additional help from parents/friends if I really need it (maybe a few thousand)
- Currently, my parents are paying for my car insurance and phone bill, because of a family plan, so my expenses are pretty low

Any thoughts would be greatly appreciated. Thanks!

Help the community by answering this question:


Yes, there is always a chance since there are properties which are less expensive.
You may talk to your lender of your choice and find it out different grant according to
the city or State. If you want assistance about that, please contact me~!
0 votes Thank Flag Link Sat Oct 26, 2013
Hi, Mike! Having no debt is huge in being able to be approved....as it assumes you have a high FICO score. Which brings me to the question....have you met with a lender? That would be your first step in this process. If you have established credit and your FICO is above 640, you should have no trouble at all getting approved.....based on a few other conditions, such as length of employment, etc. Sounds like your financial situation is quite well for a 26 yr. old!

On great thing I can tell you, based on the information you provided here.....is if you are considering a purchase with the city limits of Champaign, there is a Building Blocks program available that is grant money provided from the city thru the state and one of the requirements is that a single person household not make more than $72,100 so you would obviously qualify for the $10,000 grant!

City of Urbana is also offering a program where the city is offering 10% of purchase price to be given to buyer at close based on the income guidelines of not making more than $40,000 for a one person household, so again, you would qualify for this program.

Any additional help I can provide, please let me know, happy to help! My website if you wish to reference is: http://jennifermclennand.kwrealty.com
0 votes Thank Flag Link Fri Jun 14, 2013
Good Morning Mike,

Curtis gave some very good information for your to utilize.

If it would be helpful, I would be happy to have one of my preferred lenders give you a call to discuss your options for purchase.

Please advise and know that I am here to help if I can.

0 votes Thank Flag Link Fri Jun 14, 2013
Hi Mike,

It sounds like to me that you can buy a house from what you wrote in your question. Interest rates are still low (though they are going up) and home prices are very reasonable. If you are going to buy a house now would be a great time.

As far as how much house you can afford the general rule of thumb is your total monthly house payment plus interest, home owners insurance, and taxes cannot exceed 45% of your gross monthly income.

A lender would be the best person to speak with about finances though. It normally takes 30 minutes or so to go over everything and get you pre approved for a loan so you can go shopping for a home.

There is a special loan program available for First Time Home Buyers where in the City of Champaign you can get a grant of $10,000 toward the down payment of your home. Not all lenders offer this loan but I know a very good lender that does.

Give me a call or email and I would be glad to get you more information because free money is awesome!!

If there is any other way I can help pleas let me know.

Cell: 217-722-4550
Email: curtisroyse@remax.net
0 votes Thank Flag Link Fri Jun 14, 2013
If i own a rental property, do i still qualify for the Building block program?
Flag Sat Feb 15, 2014
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