I only make $25,000 a year. I work full time and only have a car payment to make which is $415 including

Asked by Shaina2225, Belleville, MI Mon Jun 1, 2009

insurance. My credit score is 664, I am only 22 years old. I am currently looking at my dream home, which is on the home path loan in MI, foreclosed and they are asking $74,900. What are my chances of getting a loan for that amount? The current interest rate here is 5.375%. And I have $2500 to put down. I just WANT this house! Thank you for any help in advance!

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Bob McClure, Other Pro, Walled Lake, MI
Wed Jun 3, 2009
good morning...need a bit more info regarding your situation....thanks.bob mcclure- success mortgage partners- plymouth, michigan...
0 votes
smith3gary, Agent, White Lake, MI
Mon Jun 1, 2009
Shaina2225,

While I wish you the best in obtaining this or any other property, I suggest contacting several lenders to see what loan programs you qualify for before submitting any offer. Ask for a Good Faith Estimate from each and review the fees carefully.

Some places that may help besides USDA Rural Development and FHA may be found on these websites.

http://michigan.gov/mshda
http://www.hud.gov/local/index.cfm?state=mi
http://www.fdic.gov/consumers/loans/index.html

Keep in mind, there are additional fees and costs associated with the purchase and repair of any property. Depending upon condition, this could be more than the selling price of any property.
Web Reference:  http://mi-living.com
0 votes
Andy Hargrea…, Agent, Plymouth, MI
Mon Jun 1, 2009
Rural development may be an option. Depends where the home is. They take higher DTIs and lower incomes and subsidize it in certain situations.

Are you sure the home is still up for sale? I can check (or better yet your agent if you have one) to see if you'd be rural eligible.

Let me/your agent know.

Thanks!
0 votes
Erin Birming…, , Memphis, TN
Mon Jun 1, 2009
Shanina,
Go to a local mortgage lender and ask them to try and qualify you for a mortgage for that amount. You pretty much have your 3 1/2 percent down payment needed but they will need to make sure your debt to income ratio isn't too high. Your credit score is fine for an FHA loan. The only thing I foresee being an issue is possibly your income. The only way to know for sure is go and get pre-qualified. Once you get pre-qualified, find an agent. If the home has been on the market for a while, the seller may come off their asking price a little or maybe pay your closing costs. Good luck!
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