Home Buying in 91730>Question Details

Diana, Home Buyer in Rancho Cucamonga, CA

How much does my gross income has to be to afford a 465K property?

Asked by Diana, Rancho Cucamonga, CA Thu Feb 7, 2013

I know the formula was at some point that my monthly payment can't be more than one third of my income, is that still the same? Also, down payment is of 30K and purchase area is San Diego Co. and no mello roos.

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Jetsetter,

Some good answers below. to summarize, your front end ratio can vary. If your credit is good and your debt is low then your top ratio can be much higher than 30%. I have had cases where the front end ratio has easily exceeded 36%. It just depends.

In the event you are a first time buyer these are some additional things you should be concerned with.

1.) Find a Loan Officer with a proven track record who WILL be straight with you, and equally important... take or return your calls. I can't tell you how many clients tell me how how frustrating it is when the LO doesn't return calls or has poor customer service.

2.) Lending has actually pretty straight forward now. All good Loan Officers will run your application and credit report through the AUS (Automated Underwriting System) in order to pre-determine what your maximum sale price is based on your income and debts. If they are a Mortgage Banker, they certainly know their own Underwriter's or Investor's guidelines concerning maximum ratios or having compensating factors.

Best of Luck!
0 votes Thank Flag Link Fri Feb 8, 2013
Jetsetter,

The debt-to-income (DTI) and other components of the pre-approval are all tied together, so when you take that step a lot of this will be quite clear. If I can help you with that (without cost or obligation) let me know. Also, feel free to join our next homebuyer webinar on March 5, where we'll cover everything you need to know about buying a home. The link is below, and this is free as well.

Thank you,

Rob Spinosa
rspinosa@rpm-mtg.com
0 votes Thank Flag Link Fri Feb 8, 2013
There are many more factors that need to be considered when purchasing a home. I would be happy to go over all of these items to help you make a good decision. Factors include, but are not limited to what other debt you may already have.

You say you would like San Diego County with no mello roos. Any cities in particular in San Diego?

Give me a call so we can discuss in more detail. I look forward to helping you.

Sincerely,

Joan Patterson, B.A., G.R.I., Realtor, License #01431647
Keller Williams Realty
951-204-1864
calljoan4ahome@gmail.com
0 votes Thank Flag Link Thu Feb 7, 2013
Sorry, it seems that I asumed a 20% down payment (did not notice the 30K that you were refering to)
0 votes Thank Flag Link Thu Feb 7, 2013
Here we go

465,000 Purchase
372,000 Loan amount
$1,670 Mortgage Payment (based on 30 yr fixed at 3.50%)
$ 485 Property Taxes (based on 1.25% of purchase price)
$ 108 Home Owner Ins. (based on 0.035 of loan amount

$2, 263 (PITI) = Housing expenses
Generally you'll want to keep it below 40 % of your gross monthly income

Then add up any monthly minimum payments (not the balance) for car loans, student loans, any credit card debt, and any other loans that you might have.

The total including PITI should stay within 45% of your gross monthly income...50% for FHA loans

Cheers
0 votes Thank Flag Link Thu Feb 7, 2013
It depends on how much is your monthly liabilities, for example car payment, credit cards, child support( if any)
0 votes Thank Flag Link Thu Feb 7, 2013
No car loans, no credit cards, no child support. Just a $370 monthly payment on a timeshare.
Flag Thu Feb 7, 2013
It will be my pleasure to help you answer this questions. But we need to check few things before we tell you, there few factors that can determinate this. Call me if you want me to help you. Robert Flores 909-331-8500
0 votes Thank Flag Link Thu Feb 7, 2013
About 7K per month on an FHA loan...PITI payment of around $2900.00
Web Reference: http://www.JoryBlake.com
0 votes Thank Flag Link Thu Feb 7, 2013
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