My gross income is around $35,000, with no debt. I have a good amount of savings. Credit rating is

Asked by Jane Doe, 19096 Fri Jan 23, 2009

excellent. I would like to purchase a home/townhouse/condo for about $250,000 putting half down and financing the rest so that the mortgage is low. Because my income is not high, would banks look favorably on this scenario? If so, can anyone give me a range of what interest rate I might be looking at? I know rates increase when loan amounts are lower. Thanks!!

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John, , Houston, TX
Fri Jan 23, 2009
I would assume the bank would look favorable on this loan assuming the home appraised for $250's.
6% rate would be a good starting point?
1 vote
Michael Blum, Agent, Blue Bell, PA
Wed Nov 12, 2014
There is not always a static answer to this question. So many things play into the answer. I would surely consult a mortgage professional to have a non committal conversation. If nothing else, it will allow you to view homes with a stronger sense of confidence in your purchasing power!
Best of luck!!
0 votes
Michael D De…, , 18969
Mon Jan 26, 2009
You could definitely be qualified for the scenerio seen here. I don't know where anyone got a 41500. payment. I would guess you would be in the $1000. range depending on taxes and insurance. With no other debt as you stated, it would be approxamately one third of your income whisch is within most Lenders guidelines.
If you need more assistance, feel free to contact me.
The very best of luck to you!

Michael D Delp
Mortgage Pro
4802 Old Bethlehem Pike,
Telford Pa. 18969
Ph- 215-453-1025
Fax- 215-453-1012
Cell- 610-762-0318
0 votes
Carol Cei, Agent, Maple Glen, PA
Sun Jan 25, 2009
Hello, Jane,

When you do a pre-approval with a lender they take all of your information and then put it through an "automated Underwriting" system. Typically, when people are putting down a very large downpayment, the underwriting system is more generous in the approval and they will allow the person to have a higher debt service.

The more important question here is will you be comfortable with the monthly payment. Please remember, you will have a mortgage payment in excess of $600 plus your condo fees, taxes and some insurance. Your payment may exceed $1000 with the condo fee. Will that be comfortable for you?'

Take a moment and see how you will feel making that payment. If you need a referral to a good direct lender, I will be glad to provide it to you upon request.

Carol Murray Cei
ReMax Millennium
0 votes
David Chambe…, , Saint Petersburg, FL
Sat Jan 24, 2009
Daniel is wrong, apply for a loan and see what happens. I ran some numbers based on your income the property and estimates of other expenses you might qualify. Nobody should give you a rate with what info you have given.
0 votes
Daniel, , Baton Rouge, LA
Sat Jan 24, 2009
your question is, can I buy a 125,000 house making 35,000 a year

answer is no
0 votes
Marty S, , Irvine, CA
Sat Jan 24, 2009
With that kind of downpayment, you should not have an issue at all. Expect a rate of 5% or less.

I am a mortgage broker. If I can be of service, please let me know!

Martin Smith

Precision Funding
877-238-6324 Ext 704
877-238-6324 FAX
0 votes
Antonio Whit…, , Orlando, FL
Fri Jan 23, 2009
Hi Jane! This is simple to do. You can go conventional or FHA. Due to interest rate is low you can have a reasonable monthly payment. You can reach me at / Tony / Branch Manager . Here to provide you professional customer service.
0 votes
Dominique Re…, , 93704
Fri Jan 23, 2009
As of today your interest rate for that scenerio would be 4.875%. Your principal and interest payment on a 30 year fixed mortgage would be $652+taxes and the condo association fee. On a 15 year fixed your payment would be $964+taxes and association fee with an interest rate of 4.625%. Please call me or send me an email and I would be happy to send you rate/market updates or get you qualified for your home loan. You can apply over the phone even on weekends or you can apply on our website.

Thank You,

Dominique Ressurreicao
American Pacific Mortgage
0 votes
Amy Sullivan, Agent, Bryn Mawr, PA
Fri Jan 23, 2009
Based on the information you've provided, you would qualify for a mortgage payment of approximately $1500 per month... Also need to have an idea of property taxes and condo fees. Rates are dependent on current market, down monies, debt ratio and credit scores/financial profile. If you need to talk to a local lender, I'd be happy to recommend one.
0 votes
Dale Archdek…, , Philadelphia, PA
Fri Jan 23, 2009
Hi Jane, I am a loan officer and would be happy to prequalify you. What you have written sounds feasible. the loan amount you are talking about does not take a pricing hit. Please contact me at your earliest convenience. It will take about 20 minutes over the phone and we can have you ready to go.
Thank you,

Dale Archdekin
Coldwell Banker Preferred Old City
223-225 Market St.
Philadelphia PA 19106
Direct: 215-370-1236
Office: 215-923-7600
Fax: 215-940-8207
0 votes
Dallas Texas, Agent, Dallas, TN
Fri Jan 23, 2009
GREAT FOR YOU savings of over $100K no debt !

Income of $35K even with large downpayment most likely afford you close to $225K condo with 50% down.

Difficult for anyone state unless you work direct with mortgage broker you can review your financial records, credit score, employment history. I dont believe you should have any problems purchasing a home.

Speak with CPA regarding tax benefits and large downpayment. Owning a home you receive annual tax benefits.
Web Reference:
0 votes
Dawn Fussell, Agent, Phila, PA
Fri Jan 23, 2009
Hi Jane Doe

I have a mortgage lender that would help you in this area. It would be best to work with a lender that is a professional.

Dawn Fussell
0 votes
Stacey Karp, , 19468
Fri Jan 23, 2009
I have just been quoted rates just over 5% for a client who has a good credit score. I would suggest that you contact a Mortgage Broker to see exactly where you stand financially and what the best options are for you consdering what you would like to do. If you are first time home buyer, there are programs and incentives that are afforded to you. There are tax credits and things that can assist you with your financing. Don't forget to, you can ask the Seller for a Buy Down or an Assist to help pay for closing costs. I can recommend a good Mortgage Company if you are in need. Make sure the agency is reputable and not a fly-by-night. Please feel free to conact me if you need any furter assistance.

Stacey Karp, Realtor, ABR, e-Pro
CENTURY 21 Alliance - Royersford
322 N. Lewis Road
Royersford, PA 19468
610-948-2100 x311- business phone
610-948-2188 - fax
610-453-2488 - cell
PA License # RS302275
0 votes
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