This information is not intended to be an indication of loan qualification, loan approval or commitment to lend. Other limitations may apply.
Minette Goldsmith, your Tucson Mortgage Loan Officer at V.I.P, Mortgage, Inc. 520-975-3909 email@example.com
Company licenses National - 172492 State - 0115261
Individual licenses National - 261487 State - AZ: LO-0912618
Equal Housing Lender
I purchased my first home when I was 23 and I can empathize with the position you are in. The best place to start is definitely a local lender where you can sit down and discuss your finances and how much home you can afford. Recent changes in the lending laws dictate a debt-to-income ratio of no higher than 43% which for a $1200/month salary would be $516; this ratio includes all of your scheduled monthly payments (student loans, credit card minimum payments, car payments, etc).
I hope that helps a little and be sure to talk to a lender who can look at the details of your individual situation and advise you on how to proceed. They can also provide you information on how to establish and build your credit. Lastly, there are free sites like CreditKarma.com and Credit.com which can assist in monitoring and building credit.
Bryan K. Taylor, REALTOR
Tierra Antigua Realty I East Office
Next, talk with a good local Realtor when you are ready. Best of luck.
Spirit Messingham, PLLC
3rd Generation Full-Time Realtor®
Tierra Antigua Realty
Direct (520) 471-6900
If you answer the questions truthfully and get results, it means that you probably qualify for a loan. If you don't get any results then that probably means that you're not ready yet. Even if you don't qualify (don't get results), you can still ask any questions you may have in the "Conversations" tab in the loan results page and a licensed mortgage loan originator will answer them in a timely manner.
Here is Hippoteq's process:
First, they assess your personal situation through a series of questions, all done online, to help determine your personal needs, preferences and risk tolerance.
Next, they get quotes from multiple lenders based on these needs. Their proprietary loan scoring system (HippoScore) then matches users with home loans based on compatibility, making it easy to evaluate multiple options.
Finally, you are given access to a personalized mortgage management portal that keeps the entire mortgage process running smoothly and facilitates communication with live mortgage guides.
If you're comfortable using online services like TurboTax and Mint.com and are in the market for a home purchase, this is a great service to check out!
No agent who has answered your question is speaking from a point of discouragement. We are answering from a place of knowledge and professionalism.
While I see you've posted in Tucson, let me tell you about Mesa since your profile says that's where you are, or are from. It is my opinion your options won't change much in Tucson.
Up to a $40,000 purchase price, there are nine places. Six of them are manufactured (mobile) homes in need of repair, and one of the six is in an age restricted community. The remaining three are patio homes which are also in poor condition and have an HOA fee of $110 per month.
Financing a mobile home is "extremely" difficult (bordering on "ridiculous") and FHA financing is not available for condos and patio homes where the lion's share of units are rentals. What that means is ALL nine would require cash to purchase and more cash to repair.
Take your time. You're only 20 and as such your life is just beginning! You need a stable job whose income is reliable. You also need to establish credit. FHA financing (as of today) requires a 3.5% down payment. You should also be prepared to pay closing costs which average 3%. On a home costing $100,000 - that's $6,500. From there, you need more cash for: furniture, appliances, utility connections, etc. Plus, you'll need money in savings.
You aren't ready now, but answers to your question put you in a great position to take action in the future.
Don't allow others to discourage you. I have helped many people your age with your salary purchase homes.
I am more than happy to speak with you and see if there are any options.
Envoy Mortgage, Ltd.
NMLS# 947738 / AZ# 0921717
Using very rudimentry projections, the purchase price of the home you could buy will be in the $40,000 ball park. It may be very possible to purchase a condo at that price. It may be possible to purchase a house in need of extensive repair for that price.
Chances are you will need to finance your purchase. Wells Fargo is the only lender I know who will fund such small loans. But you have no credit history. After you pay for the inspection and appraisal, Wells Fargo will deny your loan. You will be left about $1,000 poorer as a result.
What should you do?
You are 20, plan to buy a home when you are 30.
(good things could happen and you buy at 25)
Establish a budget. You must include a savings component for your down payment. You may not use this money for a down payment, but you will most certainly need it to appear in your bank statement.
Live below your means.
Reduce your debts
Increase your income. You clearly have access to the internet, which is the great equalizer, so use this resource to make some money.
Pay your bills on time.
When you have $5,000 (or more) saved, and a timely paying history, contact a REALTOR to review the existing real estate market and determine what is practical for you to buy. The REALTOR will refer you to a lender who has a successful history of providing loans for people like you purchasing real estate like yours. If you start with the lender first, you won't realize your mistake until your loan is denied 4 days before closing, and you will be left poorer.
Finally, temptations will cross your path. These temptations wear suits and appear as Rent-to-Own or Lease Options. Don't do it! You will be left poorer as a result.
Best of Success,
Annette Lawrence, Broker/Associate
Remax Reattec Group
Palm Harbor FL
Have you considered you'll need a down payment of 10% to 20%? For a $100,000 house that 's a lot of cash. In this economy there's a chance that house might go down in value. What would you do if the house you put $20k down on dropped in value to $80k next year? Ouch.
At this stage of your life do you even want to be tied down to house? The debt would be such a large part of your income you may wish you hadn't burdened yourself with the debt. Rent a cheap place, save your money for the day you're ready to buy a house.
I'd say you should think carefully about what you really want. Ask advice from family and people who care about you.