Question Details

Kevin Hand, Home Buyer in Waterford Works, NJ

If someone has great credit and 20percent down, but a low income can they still purchase a house?

Asked by Kevin Hand, Waterford Works, NJ Thu Oct 11, 2012

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Your loan qualifications are based on your ability to repay the loan. A large part of this is your debt to income ratio. The maximum total debt to total income is typically required to be less then 45%. So, in simplistic terms, if you made $2000 per month, 45% of that is $900. Your total debt payments couldn't be more then $900. Hopefully this helps. ...but talk to a lender for more accurate numbers based on your situation.
1 vote Thank Flag Link Thu Oct 11, 2012
I suggest that you meet with a loan officer at 2 local banks to determine what you can afford. Keep in mind that you may be able to find condos that you can afford over houses. You need to ask your loan officer if there are any condo developments where they will not make a loan.
0 votes Thank Flag Link Thu Oct 11, 2012
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