Do i quailfy for a loan of 289 thousand I am 66 retired My income is about 3800.00 a month i have excelent credit How much would my monthly payment be

Asked by Nick, Sacramento, CA Thu Mar 18, 2010

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John J Dutra, , Fremont, CA
Thu Mar 18, 2010
Nick,
A lot of variables here, but after running the numbers, they would suggest that you do not currently qualify for that loan amount. Variables would include if this were a home or townhouse/condo (with HOA fee), down payment amount, credit scores and other debts. But just to give you a rough idea of what Fannie/FHA might approve, I ran the numbers based on your income and they would suggest that you would qualifiy for a $220k to $225k loan amount on a home (not a townhouse/condo where that approval may drop due to HOA fees). Some of the factors used in that calculation were mortgage insurance (assuming you were putting 3.5% down and an FHA loan) and that your income was a gross income. There may be a possibility of "grossing up" your income if the income is non-taxable. As you can see - there are plenty of variables that can either improve your qualifications or drop them - if I can be of more asistance, please let me know. These numbers are approximations only - but they may help you in your desire to become a homeowner. There is nothing that says being retired would hurt you in any way in qualifying for a home loan. Best of luck!
0 votes
Pacita Dimac…, Agent, Oakland, CA
Thu Mar 18, 2010
The most accurate figures will depend on where you're located, how much the city/county transfer taxes will be and who's paying.

These are mere estimates. Your lender can give you a much better idea....but here's a start.

Assuming 30% of your income is slated for monthly payment, and assuming conventional loan at 5% interest for 30 years, here's what it looks like

PITI Ratio- Conventional
Total Monthly Payment $ 1,141.00
Interest rate 5%
Years of Ln. 30
Tax 1.25
Insur.Rate % 0.35

Your Loan Amount will be� $ 155,029.00
Your approximate house price will be...

With 0% down $ 155,029.00
With 5% Down $ 173,873.00
With 10% Down $ 184,638.00
With 15% Down $ 202,739.00
With 20% Down $ 212,893.00


Assuming FHA loan, 5% interest for 30 years

PITI Ratio- FHA
Total Monthly Payment $ 1,140.00
Interest rate 5%
Years of Ln. 30
Tax 1.25
Insur.Rate % 0.35


Your approximate house price will be...

With 3.5% down $ 162,077.00
With 5% Down $ 164,145.00
With 10% Down $ 171,436.00
With 15% Down $ 179,404.00
With 20% Down $ 188,150.00

if you think you can pay more than 30% of your income towards your housing, then of course these figures will be different.
0 votes
, ,
Thu Mar 18, 2010
Hi Nick,

Not enough information to really determine whether or not you can qualify for a $289,000 loan. Need to know the purchase price, how much down, property type, HOA dues, if any, etc. Also, would need to know the source of the monthly income and whether or not it is taxable income.

Best,
Elva
0 votes
Christine Ro…, Agent, Mora, MN
Thu Mar 18, 2010
Nick, great question the best rule of thumb is to not have your housing costs exceed 30% of your income. When you exceed that then your are stretching yourself really thin. I would suggest that you talk over the purchase not only with a trusted mortgage and real estate professionals as well as with a financial advisor. The three together can provide a true picture that will help you see the path to your goals. This talk could save you headaches as you enter into the prime of your life.

Payments on property will depend on several things such as your loan type, down payment, whether you roll closing costs in or not. So it is hard to say. Check with your trusted mortgage professional to help you understand which loan type is best for you and your goals.
0 votes
Dan Chase, Home Buyer, Texas City, TX
Thu Mar 18, 2010
Do you have at least 3.5% to put down? FHA requires that.
Are you a veteran? V.A. loans are at 0% down.

Age is irrelevant here. Age discrimination laws say you could be 90 and they would have to give you a mortgage.

$45,600 yearly income. If ss only multiply by 1.25 to compensate for taxes.
Generally speaking yearly income x 3 = safe mortgage.

I would talk to a couple of local lenders near you. They can give specifics. Make sure that before you go in you have a set number in mind you do not want to pay more than. If the bank says you could get a loan for more be careful accepting that idea.
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