Home Buying in 78232>Question Details

Xmen, Other/Just Looking in 78232

i just entered a lease on a townhome. My monthly rent is $795.00 and my yearly income is 25k. Is it possible to look into buying a house?

Asked by Xmen, 78232 Thu Jun 16, 2011

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The eager beavers who first answered this seem to have overlooked your mention that you just entered into a lease. If you want to buy, talk to a lender first to see where your finances stand. If it looks good, then talk to your landlord (property manager) to see what kind of arrangement you can make to get released from the lease.
0 votes Thank Flag Link Sun Jul 17, 2011
Yes, you could qualify to own a home! However, your credit score and debt will play a huge role. Is everything is fine, it is a matter of you buying a house in an area where houses are cheap. Contact me and we can discuss your options.
0 votes Thank Flag Link Mon Jul 11, 2011
Lenders look at something called a DEBT TO INCOME ratio. Assuming you are the only one that would be buying the home, take your annual income (25k) and devide that by 12. You get $2083. Most lenders require you have a debt to income ratio AT or BELOW 50%. 50% of $2083 would be $1042.

This means that all of your monthly payments that are shown on a credit report (mortgage, car payment, credit cards, student loans, etc) have to total to less than $1042. If you bought a house with a monthly payment of $795, that means you only have about $287 left to spare.

A $795 monthly payment, including taxes and insurance, equates to about a $100,000 home on a 30 year mortgage with an FHA loan. Obviously you could lower that monthly payment by putting a larger down payment or buying a less expensive house.

Hope this helps you understand a little about the home financing side of things...

It's more than real estate. It's RAYL-Estate!

Brian Rayl
Keller Williams Elite
0 votes Thank Flag Link Sat Jun 18, 2011
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