Home Buying in Skokie>Question Details

Optima Lover, Home Buyer in Skokie, IL

Is it possible to get a mortgage if it is more than the 30% of your monthly income (I think that it's about?

Asked by Optima Lover, Skokie, IL Tue Dec 2, 2008

30% or so....)? I am a first time buyer who is making just over 50k and am interested in a a property that is 240k. Any hope?

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Normally they do not want to see your monthly mortgage, taxes and insurance more than 33% of your nmonthly income. Your best bet is to contact a local and trusted mortgage broker. Stay away from the internet lenders. they will be able to pre quailify you at no cost. Once you know what you can quailify for you should hire a buyer broker who can assist you with each step of the buying process. Usually you can hire one at no cost to you as they get paid at closing by the fee offered by the listing broker to listing agents at closing. good luck with your search.
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0 votes Thank Flag Link Thu Dec 4, 2008
The only other debt I have is a student loan, but I'm about to start a doctoral program so the payments will be deferred for at least 3 years (my work pays for tuition!). The rent in this particular building goes for about $1400 and I thought that the mortgage payment couldn't be more then $2000 (which I could handle). Work would be walking distance from this apartment, so the time and gas money saved would be well worth it. Further, it is a job that offers a lot of security in a higher education setting...

With that said... I've been hearing that an FHA loan would be the way to go. However they are not flexible like banks when it comes to the debt to income ratio... Is that true?
0 votes Thank Flag Link Thu Dec 4, 2008
I know this might not be what you want to hear but if you want to live a comfortable life I would shop for a home in the $150,000-175,000 range. Your monthly principal and interest payment for a $150,000 loan , at 6% for 30 years would be $ 899.33 per month, plus your taxes, and insurance.

Many people who stretch themselves to buy a nicer home end up living paycheck to paycheck and end up with miserable lives and loss of sleep. Go with something smaller and less fancy and I promise you , in the end you will be so glad you did.
0 votes Thank Flag Link Thu Dec 4, 2008
Optima,
The $240,000 range is probably a stretch, but it depends on the rest of your situation. With a 3% FHA loan, figuring an estimate for taxes and insurance, your mortgage payment comes out to about 40% of your gross income. I have approved buyers with a high housing payment but no other debts when they've had good credit and a history of savings. But the question then comes down to whether this is a payment you can comfortably shoulder going forward. What kind of other debts do you have now? Are there going to be purchases like a new car you need to make in the future? Is your income trending up, or is it stagnant? Are there repairs or maintenence issues you will need to deal with in the new home?

It may be possible to qualify for the new home, but it still might not be the right choice. Run your numbers and see what kind of payment you can comfortably handle (include tax benefits) and that should help you back in to the size of home that is right for you.
Web Reference: http://ptmortgage.com/blog
0 votes Thank Flag Link Thu Dec 4, 2008
My suggestion is that you really need to talk to your bank, or a mortgage broker. I'm sure there are questions that they would want to know answeres to in order to say yes or no. There may actually be options and it's really hard to just answer yes or no here.

If you need information on a good loan officer, contact me and I'll be glad to give you a couple of names.
0 votes Thank Flag Link Wed Dec 3, 2008
As I understand from our in-house mortgage broker, depending on your overall ratios, mortgage companies will loan to buyers. It used to be that there was a hard defined ratio that bank's used for lending. My suggestion to speak with an agressive mortgage broker to find out what exactly you qualify for. This will take all the guessing ouf of the equation & you can then look in the right price range. If your need a recommendation to an aggressive mortgage broker, you can reach me through my website below.
0 votes Thank Flag Link Wed Dec 3, 2008
More than likely NO, unless you have more money for a down payment to reduce your mortgage payment. You are probably best to search for homes from $100K up to $150K. However work with buyers agent you might be able to locate a foreclosure valued $240K list price is $150K.... hope.
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Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Tue Dec 2, 2008
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