Question Details

Connie Ander…, Home Buyer in upstate,SC or central...

How much house can I afford?

Asked by Connie Anderson, upstate,SC or central,FL Fri Dec 5, 2008

My husband is totally disabled and right now his disability of $1770 is our only income. We have excellent credit and no debt. I need to know what price range to look in for homes and if anyone would even give us a mortgage.

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7
Hi Connie-

Joshua hit the nail pretty much on the head. The answer to the question is how much can you afford....

I will go out on a limb here and say that you want a mortgage around 600-800/month. Since insurance and taxes are pretty low in upstate SC and rates are ridicuously low right now, let's use this example:

$100,000 purchase
$97,650 mortgage + UMIP ($1,464.75)
$99,114.75 total mortgage @ 5.5% rate

$562.76 (principal & Intertest)
$41.30 (monthly mortgage insurance)
$100 (rough estimate for taxes and insurance)

$704.06 Total Mortgage Payment

Keep in mind that even if you feel you can afford more, most underwriters will see that you do not have much in disposable income each month so they will probably be more discerning about how much of a payment they want you to have.

If you have any questions, please give me a call. I am right across the border in Asheville, NC.
Have a great day
Luke Allison
Flagstar Bank
828-777-8828
Luke.Allison@flagstar.com
1 vote Thank Flag Link Fri Dec 5, 2008
It's not a matter of how much you can afford, but what amount are you comfortable paying for housing every month. At one time, banks used the 1/3 of your income rule and then changed it to 28% of your income. But, what monthly payment would allow you to own a house and go out to movies, dinner, and car payments expenses while still saving some of your income?
Web Reference: http://GregoryBain.com
1 vote Thank Flag Link Fri Dec 5, 2008
Connie,

That's not a question WE should be answering.

You can get a mortgage, but first you must think about your budget. How much do you want to spend of your $1770 on a home?

Once you have a budget, then the next step would be to call a GOOD loan officer by referral, hopefully.
0 votes Thank Flag Link Fri Dec 5, 2008
Joshua Jarvis, Real Estate Pro in Duluth, GA
MVP'08
Contact
Here is a link to some more ifnormation and a tool:
http://cgi.money.cnn.com/tools/houseafford/houseafford.html
0 votes Thank Flag Link Fri Dec 5, 2008
No one can tell you the answer till you work direct with a mortgage broker. You will need to have all your financial records available for past 2 years, tax returns, loan officer will review your credit score, debt ratio, and finances determine if you can qualify for a mortgage. If YES they will proved you a lender approval letter where you can work with a realtor. There are tax advantages for home ownership GOOD LUCK !
http://www.lynn911.com http://www.homes-for-sale-dallas.com
Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Fri Dec 5, 2008
Hi Connie,
Great question. But no simple answers. Too many unknowns. Gregory has some great advise. In addition I would check with a mortgage broker or bank (in this financial climate I would suggest a bank.) Also look for seminars for Buyers being held by various Brokerages. You'll be able to get alot of your specific questions answered there. Weichert has them periodically. Check with the local Weichert affiliate office to confirm their schedule.

Good Luck !!

Marilyn
~~~~~~~~~~~~~~~~~
Marilyn Geiger, Realtor Associate
Top 5% of all Weichert Agents 2004-05, 07
ASP - Accredited Staging Professional
ABR - Accredited Buyer Representative
e-PRO - Certified Internet Professional
SRES - Senior Real Estate Specialist
Cherry Hill, NJ 08003
Cell Phone: 609-238-0465
Website: http://www.MarilynTheMatchmaker.com
Website: http://www.ChooseMarilyn.com
Website: http://www.GetYourLifeBack.com
~~~~~~~~~~~~~~~~~~
Marilyn the Matchmaker
Connecting Sellers with Buyers
0 votes Thank Flag Link Fri Dec 5, 2008
Connie,

Our recommendation is to be in touch with several lending agents to get a broad perspective on what your options are and your best course of action.

good luck
0 votes Thank Flag Link Fri Dec 5, 2008
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