I am 23, engaged and just graduated from college. I have about 100K to pay back in student loans, and am

Asked by Lindalindalinda, Lowell, MA Thu Jul 23, 2009

saving for a wedding in 2010. My fiance and I are living with my dad right now and are looking to move out. I have a steady income of 40K a year but my fiance is not working right now, since he is in grad school. I hate the idea of paying rent and am dreaming about buying a house, something in the 50K-70K range. Some listings I see on trulia say as little at 3% down which is very appealing to me but I don't know exactly what that means or if I would qualify for that small of a down payment.

I am wondering what my first steps should be in trying to find a house, is it even feasible for us at this point?

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Ken Lambert’s answer
Ken Lambert, , Exeter, NH
Fri Jul 24, 2009
Hello Linda- Good questions, and good for thinking it all through. And good luck with the wedding!
Based on your income alone, your MAX mortgage amount would be around $145K. It is correct that you can get in on a home/ condo for as little as 3.5% down payment. So, you find a place for $150K- you need to come up with $5250 down payment. Closing costs is a different animal, and would usually run you between $3000- $4000 or so. However, the seller can pay for up to 6% of your closing costs- so you could be all set with that end.
There are some great deals around, for sure. Plus you get the $8000 IRS tax credit. If you'd like to talk with and work with a local lender, please let me know. We are the largest mortgage lender in Massachusetts, with about 20 branches. I'd be happy to speak with you.
Thanks, and good luck,

Ken L
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Kristen Blan…, Agent, Dracut, MA
Fri Jul 24, 2009
Hi Linda,
Now is a great time to buy with the low rates and the first time buyer credit. Even with only the one income I'm sure you can qualify for a loan in the range you are looking in. In fact, there are many properties in the area that you would be able to get into. If you would like to meet to discuss your options and the home buying process I am a local agent and would love to meet you! Feel free to call or email me anytime!
Web Reference:  http://www.sellyourden.com
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, ,
Thu Jul 23, 2009

Bob gave you alot of information. I suggest contacting a lender to see your exact option. It does sound like you have some type before you buy, so contacting a lender will give you a game plan and give you a course of action to owning a home.

Danny Castagna
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Bob McClure, Other Pro, Walled Lake, MI
Thu Jul 23, 2009
good morning linda.......as long as you are in a similar line of work as your college major, you can actually use the years of college as work experience...fha is 3.5% down, and the seller can pay up to 6% of the price of the home towards your closing costs and pre-paids...it is an excellent program for your situation......if your student loans are in derferrement for a year, the payments won't be used against your debt ratio.if they are now.they will be considered..you can also have a non-occupant co-borrower on the deal with you to boost the income used to qualify you.usually a parent(s)...i would leave fiance off the deal now, as he probably has student loans too, with no income to offset his debts.....you can always deed him on with you after closing..don't forget- the federal tax credit is available to you as well if you are a first time homebuyer.....it is up to $8,000 or 10% of the home price.whichever is less......best regards.bob mcclure- success mortgage partners- plymouth, michigan....
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