Financing in Brandon>Question Details

Buyingahomef…, Other/Just Looking in Brandon, FL

My mother is retired and on a fixed income of $600/month. She has excellent credit, no outstanding credit card balances, no car loans, etc.

Asked by Buyingahomeformom, Brandon, FL Sat Feb 6, 2010

A condo between $45-55K is ideal, but HOA fees will cut into her monthly payments. I need to know if she will be able to qualify for a loan on her own or will she need someone to cosign?

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At only 600.00 a month, your mother is not in a financial position to take on the responsibilties of home ownership. Apart from the monthly mortgage note itself, she will have the additional responsibilities of utilities, home owners insurance, and possible maintenance incidentals that could pop up at any given month or time. If 600.00 is all she has, she will definitely need a co-borrower. Either that or look into some type of subsidize housing.
0 votes Thank Flag Link Sat Feb 6, 2010
At $600 a month she is better off renting.

If the furnace died and she needed to pay half a year or more of income to replace it she would be in a bad place financially.

Because she has such a low income to get a mortgage over $150 a month would be most unwise. And at that rate it would be well under $25k. More likely to be safe it would be about $15k purchase price. That pretty much says only a trailer on a rented lot. Since lot rent could be $300 or more a month (without a trailer) she should not buy.

I am sorry, I know the numbers. With the cost of heat, electricity, food, and something added like clothes and doing anything that income is just NOT enough to do it. Check into section 8 housing it takes about 1/4 of her income and that she could afford.
0 votes Thank Flag Link Sat Feb 6, 2010
If all that she has is $600 per month, unless you are planning to give her additional money once you co-sign for her, you have to think very hard about whether she will be able to make all the payments. Does she have any other money? You wouldn't want her to have to use that much of her money for payments. Although she would get a homestead exemption, there are some taxes, as you said maintenance, other utilities, not to mention living. Where is she living now, and how much is she spending per month.
0 votes Thank Flag Link Sat Feb 6, 2010
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