Home Buying in Wareham>Question Details

Allison, Home Buyer in Wareham, MA

how much do you have to make annually to qualify for a 150k mortgage?

Asked by Allison, Wareham, MA Tue Mar 6, 2012

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Hi Allison,

Great news, Wareham is eligible for the no money down USDA mortgage! The other great thing about the USDA mortgage is the monthly mortgage insurance payment is substantially lower than FHA or conventional options.

For example: On $150,000 loan the FHA monthly MI is going to add $143.75 to your payment. With a USDA loan the MI only adds $38.27 to your payment.

I ran some numbers and here is what you would be looking at for a monthly payment on a $150,000 USDA mortgage.

Principle and interest = $708.90
Home owner's insurance = $50.00 (estimated)
Property taxes = $178.00 (estimated
Monthly MI = $38.27

TOTAL = $975.17

You would need a monthly income of about $3,000 +/- to qualify depending on the other monthly payments you have on your credit report.

Please feel free to contact me for more information or help.

John Burke
Senior Mortgage Banker
ENG Lending
(877)228-9069
jburke@englending.com
1 vote Thank Flag Link Wed Mar 7, 2012
The ONLY person who actually gave a reasonable answer to the question about how much money you need to qualify is John Burke. The rest of you are a bunch of self serving jerks who never even ball parked the question about income. Except for John a bunch of holes.
Flag Wed Apr 18, 2012
I agree to some extent with John, about not needing the lender to be local... BUT there is strong value in someone who is local and accountable. I have seen too many customers start the process with some online, non-local, mortgage company only to find that the deal was either not what it appeared to be or was difficult to navigate and close in a timely fashion. I'm NOT saying that about any lenders in this thread, but facts are I have seen it happen first hand. And when that happens I have had customers then come to me to solve the issues. From there I turn that "customer" into a client for life.

Again, it's an accountability thing, where we all work off of referrals. But when you're local, you damn sure know your reputation is on the line to perform.

Just my 2 cents.

Regards,
Scott
1 vote Thank Flag Link Wed Mar 7, 2012
If your income is less than $20K is there any chance of getting a loan?
0 votes Thank Flag Link Thu Apr 11, 2013
There is no reason to limit yourself to working with a "local" broker or lender.
0 votes Thank Flag Link Wed Mar 7, 2012
Thanks for clarifying John!

I too am looking for a home and mortgage. I think Kevin is spot on. The best route is to contact a local mortgage broker or lender to get exact numbers based on one's financial situation.
0 votes Thank Flag Link Wed Mar 7, 2012
@ Steve,

Yes, the numbers I provided are based on what I have available as of the time I posted.
The APR is going to vary depending on third party fees like the settlement or closing fee from the title attorney/company. Since I can't accurately calculate the APR without knowing these 3rd party fees, by law I can not "advertise" the actual interest rate used but let's say it's under 4%.

Yes, the USDA program does have county income limits. In Plymouth county the maximum annual household income for 1-4 people is $100,900.000
0 votes Thank Flag Link Wed Mar 7, 2012
Allison- John gave you a good starting point with numbers. It can be highly variable depending on the amount of consumer debt you have.... car loans, credit cards and so on, as well as your credit score.

The best thing to do is contact a local mortgage originator that can give you some exact numbers specific to your credit and income profile.
0 votes Thank Flag Link Wed Mar 7, 2012
John,

Are the numbers you advertised below the terms that actually are or will be arranged or offered by ENG Lending ?

Also, what is the "annual percentage rate"? Will that rate increase after consummation?

USDA loans also have income requirements as well, correct?


Thanks!
0 votes Thank Flag Link Wed Mar 7, 2012
Will depend on other factors too. Get a pre approval. We offer them at no cost or obligation.
0 votes Thank Flag Link Tue Mar 6, 2012
Hi Allison,

Thinking about buying a home? Good for you considering record low interest rates, tax benefits, and the sense of pride in ownership that you have to possibly look forward to!

There are actually several factors to carefully examine when assessing your readiness to buy a home with a mortgage loan. Certainly, as you suggest, income is critical when establishing your budget.

But other equally important factors to be considered, include your credit score, also called your FICO score (620 and above is needed), your amount of debt in relation to your income (how much revolving debt, i.e. credit cards, will be particularly important to minimize,) and the amount of savings that you have to pay for your down payment and closing costs. You down and closing cost amount will vary based on the amount of the loan.

With regard to down payment, you will need 3.5% for an FHA loan (which has a max loan amount which varies by regional area), 5% for a conventional loan, and if you or your husband is a veteran, you may qualify for a VA guaranteed loan without a down payment. There are no available zero down mortgage loans as we saw in recent years (thank God.)

You have taken the first, right step - thinking before you leap. Are you now ready to take the next steps?

- Talk to a lender to get pre-qualified, not to be mistaken with being pre-approved (in fact talk to at least three but do not allow each to pull your credit until you are ready to be pre-approved.)
- Make any recommended financial changes to improve your eligibilty (this could take 6 - 12 months if you are committed to a solid credit improvement strategy.)
- Select a Realtor you feel comfortable with and make them your exclusive representative in the purchase (you can feel free to drop me a line if you need a referral to a great agent in Wareham, MA - I know of several.)
- Find the home you can afford and that you love! And reach terms of purchase through your agent.
- Get pre-approved immediately following and be prepared to show proof of funds for your down payment and closing costs once the offer is accepted.

Finally, live happily ever after! Or at least that is my wish for you! Good luck and God bless!
0 votes Thank Flag Link Tue Mar 6, 2012
For a personalized answer visit with any licensed loan officer; in addition to income, other factors apply such as credit, amount down, debt, etc.
0 votes Thank Flag Link Tue Mar 6, 2012
It depends on what amount of debt you have. We compare your income to your debt, and the mortgage payment associated with the new mortgage payment.
0 votes Thank Flag Link Tue Mar 6, 2012
Allison,

You should contact a Mortgage Consultant. There is more information needed to qualify for any loan. Annual income is just part of the qualifing process. I would be happy to refer you to an excellent contact.

Pat Waldron, Realtor
email pwaldron@jackconway.com
508-7327-6353
0 votes Thank Flag Link Tue Mar 6, 2012
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