You know I think the easiestt way to address your concerns is to give a mortgage lender a call. They can go through all of your unique variables and get you pre approved. Don't stop there! It may be a good idea to get more than one lender to quote you.
Before you can go purchase a property, or even look at homes, you will need to have your financing lined up. Get started, who knows if they will extend the credit or not. Remember, you have to close by November 30!
That is less than 90 days out!
Thanks for your honestly. You are actually servicing a lot of debt. You might be better off paying down some of your debt and then buying a home. I know this is not popular however for long term homeownership it makes sense.
A rule that I use when I teach home buyers seminars is that borrowers have an 8 month reserve in case of a job loss, etc. With your situation you might consider paying off your debts, recapitalize and have a certain amount of cash to get into a home at a price you can afford with a payment that makes sense.
I do not believe that anyone is speaking about the $8k tax credit extended into next year because the government does not want fencesitters. They want the first time homebuyer to eat up this inventory.
I do think the tax credit will be extended into next year. However, I think that is secondary with regard to the $16k of debt that you might want to consider paying off before getting into a home.
Maybe I am old fashioned but I do know a new roof will cost $8k.
Fannie Mae requires 5% down payment. NO mortgage insurance required, subject to meeting certain guidelines.
You can use the $8,000 tax credit as the down payment: http://www.federalhousingtaxcredit.com/2009/glance.php
Let's assume your purchase price is $80K:
A. 5% down payment, 5% interest, 30-yr fully amortized mortgage
B. the estimated monthly mortgage payment is $408 (+prop. tax and +homeowner insurance).
C. Estimated monthly debt: $408 + $150 (estimated tax&ins) + $570 ($16K debt) = $1,128 (EXCLUDEs utilities, food, gas, etc.)
So, how comfortable are you with the estimated $1,128+ monthly payment? What are you paying for rent now?
I suggest you find a local lender who can do Conventional, Fannie Mae, FHA, or VA loans so he/she can find the best loan progam to fit your affordability.
Be a homeowner...income tax deductible, an excellent equity builder.
Don't be a renter...ZERO income tax deductible, does NOT help you to build wealth.
Good luck to you and l hope the infomation helps. Please verify all my calculations with your local lender.
Phone: (888) 525-0125
Let me know if I can be of any more assistance. I am a local Pittsburgh real estate agent.
Kaedi Manly, Realtor
WJ Kellar Real Estate
725 McKees Rocks, PA 15136
office: 412-331-1162 x 109