Home Buying in 87108>Question Details

Jucio, Home Buyer in 87108

I am a veteran, first time home buyer making $22K my score is 740, savings of $4,000, no cc/car debt. Can I qualify for $100,00 home?

Asked by Jucio, 87108 Thu Dec 1, 2011

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7
By the way, using a VA loan can cover your down payment. Then, asking the Seller to pay closing costs can further assist you. This way, you can use your savings as a reserve or for moving in.

Leigh-Jo
Syan Real Estate
Call/Text: (505) 730-8181
Web Reference: http://www.Syan.com
0 votes Thank Flag Link Sat Mar 3, 2012
If you can be in a suburb of your city and that town has a population of less than 25K, then you could qualify for a Rural/USDA loan at 0 down. In North Idaho the income threshold is $34,500. annually. If the home needs repairs, they can incorporate additional funds for that into the loan (based on the appraisal)
I hope that helps.
0 votes Thank Flag Link Sat Mar 3, 2012
to give you the magic 8 ball answer:
Outlook is positive
I have a client that has about the same circumstances you do and he was able to get qualified for $115,000. You can visit my website or call me so that I can introduce you to Charlie @ Van Dyk Mortgage.
0 votes Thank Flag Link Sat Mar 3, 2012
Your circumstances look positive, a few factors to keep in mind that can determine if you can qualify for a $100,000 home are:

1) Taxes - If the taxes are higher than average, it can decrease the amount you can qualify for on a particular home. Although the taxes may be reassessed once the home is purchased, the lender goes by the current property taxes.

2) HOA - If there is an HOA (Home Owners Association), it can also effect what you can offer on a particular home. Be sure to inquire on any home to determine if it has an HOA, and if it does, how much. Then provide this information to the lender.

3) Interest Rate - Interest rates can also determine what your purchase power may be. With a VA loan, you'll have some great rates.

There are some really amazing foreclosures and HUD homes priced below $100,000. You'll be surprised what is on the market. Some bank-owned properties have fresh paint, new carpet and appliances. Plus, you can request closing cost assistance :)

Leigh-Jo
Syan Real Estate
Call/Text: (505) 730-8181
Web Reference: http://www.Syan.com
0 votes Thank Flag Link Fri Mar 2, 2012
Hi, Jucio,

The best way to get a sure answer is to talk to a local lender. Most qualification is done using two ratios. The front ratio takes a percentage of your Gross Monthly Income (before tax) to determine the max payment they will allow including taxes and insurance (PITI). Typically the number is 25% to 33% - some lenders will go higher depending on your individual situation.

The 'back ratio' adds to the proposed PITI payment the total of your other payments on all obligations with 10 or more payments remaining. Typically that is 40% to 55%, again depending on the lender and your situation.

Ask your agent to recommend a lender who will counsel you on what is possible for you in your individual situation.

Good luck,

Doc Stephens, REALTOR®
0 votes Thank Flag Link Thu Dec 1, 2011
The qualifications for a VA loan are different from traditional loans. In such areas but not limited to: type of discharge, active war time, non- active war time, etc. Please consult your local Veterans Administration contact for further details and confirmation.
0 votes Thank Flag Link Thu Dec 1, 2011
When purchasing a home, they look at many factors, including credit score and income. Your score is great, but the income would be too low to qualify for a home purchase of $100,000. Other things to consider is that although your score is high enough, you may not have enough trade lines aka revolving credit such as a car payment or credit card. You may be able to use alternative credit such as cell phone bill that you regularly pay on time every month. Typically they want three of these. You may qualify for a lesser priced home or maybe you can get someone else on the loan with you who can be considered a non occupied owner. I hope this has helped.
0 votes Thank Flag Link Thu Dec 1, 2011
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