Would I be approved for a $150,000 mortgage if I have only $4,000 to put down, a credit score of 680 and work a part-time job making $30,000 annually?

Asked by Pink Lady, 87110 Tue Feb 8, 2011

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20
Spirit Messi…, Agent, Tucson, AZ
Tue Feb 8, 2011
Please speak with a licensed and local lender. They can tell you what or if you would qualify and what you can do to improved your scores and etc. The best part, it is a free conversation. If you do not know any "good" local lenders, start with your bank as you already have a professional relationship with them.

Best of luck.
Spirit
1 vote
Marge Bennett, Agent, Fort Myers, FL
Tue Feb 8, 2011
Off the top of my head, sounds like your payment on $150k mortgage would be higher than most budgets allow. Do you have other income that would help? talk to a good lender in your area to get pre-approved and find out how much you can afford.
1 vote
Yogi Ramadin, Renter, 92315
Fri Nov 28, 2014
I had a similar question. according to this link you are not even close:
http://homeguides.sfgate.com/amount-income-needed-mortgage-2…
0 votes
, ,
Tue May 1, 2012
Good morning Pink Lady,

Based on the information provided you'd likely be approved for a mortgage under the FHA program with 3.5% Down Payment with a Seller's concession to pay your closing costs. Since you are working with only $4,000, $3,500 of that would go to your down payment on a $100,000 home.

Here's what I'd recommend:

Meet with a Local Mortgage Banker to get prequalified for mortgage financing. The Mortgage Banker will review all facets of your loan request to answer your questions with regards to the types of loans and maximum loan amounts you could qualify for.

Good luck!
Trevor Curran
NMLS #40140.
0 votes
Emily Medvec, Agent, Santa Fe, NM
Mon Apr 30, 2012
Barbara, I think this is a good question but not necessarily for broadcasting a request for an answer. I recommend you make an appointment with the mortgage professional in your local community bank in Albuquerque. They have the best resources to review your credit, discuss the range of mortgage options such as FHA vs Conventional and assist you in a game plan. Then, once you are pre-qualified begin to work with an experienced Realtor in your community.
0 votes
Barb Hauge, Agent, Rapid City, SD
Mon Mar 19, 2012
It is always important to speak with your professional lender who knows your financial situation.
0 votes
Chris Nyman…, Agent, Albuquerque, NM
Sun Feb 19, 2012
Most likely, yes! 680 is now a minimum score for most mortgage programs - as long as that is your "mid-score" and not your highest. But the mortgage market is a complex place and the most important element of a happy, succesfull home purchase is to have a great, clear, infomative mortgage broker and a trustworthy Realtor on your side. Shop around and work with someone you feel is communicative and informative with you. Home buying is likely the biggest transaction that you will life - you need people you can trust educating you and working with you along the way.

Also, New Mexico has some great home buyer assistance programs for the down payment, and with many properties the buyer can ask the seller to contribute $ towards buyer side closing costs. So if your credit score is acceptable, and your income is steady, we can get it done!

Feel free to call me and chat if you want, (505) 440-6293
0 votes
David Staffo…, Agent, Albuquerque, NM
Sun Feb 19, 2012
Yes, based on what you said above, if you have a debt to income ratio of less than about 40% (total monthly debt that shows up on credit report / gross monthly documentable income), you should qualify for an FHA mortgage. However, you would need 3.5% down ($5,250), unless you use something like a NMMFA program. You can shift closing costs to the seller if negotiated right. I would recommend trying Jason Pike at PrimeLending (505-828-9400) if you are still shopping. He had rates last week at 3.75%! Anyhow, best of luck!
David
0 votes
Chris Nyman…, Agent, Albuquerque, NM
Tue Feb 8, 2011
Hey Pink Lady, It sounds to me like you are in the ballpark. And prices are so good, and bargains so abundant right now, that you should be able to find a great property that fits your budget – no matter what it is!

Everyone else who posted is right-on about talking to a good lender. I know a fantastic Mortgage broker who is kind and patient and has PHENOMENAL customer service. Her name is Louanne Brown and she works with Peoples Bank/Lewallen Mortgage in Albuquerque. Contact me and I’ll give you her number.

You also want to hook yourself up with a patient, compassionate, HONEST Realtor who will walk you through the process, show you all your options, and educate you on the home and the home buying process. A good agent will help you feel comfortable with the process and put your needs before their own. If you are currently considering a specific property, take a little time and SHOP for a buyer broker before you consider an offer. Even if you go back to that same property… you will go back knowing you have an advocate in your corner.
0 votes
Joshua Chris…, Agent, Albuquerque, NM
Tue Feb 8, 2011
Hi there Pink Lady,
A quick follow up to Jonas Mancuso below. He is from the Houston market and much of what he said is ok, however, the property taxes and insurance rates in Albuquerque are far less than what he described. TX does not have state income tax and therefore collects a lot of their taxes revenue through properties. Here in NM we don't do that, so our rates are 1/2 if not more than that of Texas.

Just FYI...Everyone on here has been very consistent about talking with a lender to help you make this decision. There are lots of ways to skin a cat, so the first thing you should do is contact your lender. AS I posted earlier, I'm happy to help. Whehter it is me or another lender, this forum is not going to be able to answer all of the necessary questions you have. You really do need to let a lender look over your particulars to see just what can be done to help you buy your new home.

Best of luck.
Web Reference:  http://www.ABQMortgages.com
0 votes
Mary Padilla, Agent, Albuquerque, NM
Tue Feb 8, 2011
Dear Pink Lady,
You might be able to--and congrats on getting your credit score in good shape! The best way to start is by contacting a local lender. i personally recommend a Mortgage Broker as they can shop around to major lending institutions to find the best loan for you. The MFA program, where they give you a piggy back loan for down payment assistance might be a great choice. Call me for referrals to three great local lenders that will help you get started at no cost and no obligation. 440-4878 or visit me at http://www.YesRealtyNM.com
Mary
Web Reference:  http://www.YesRealtyNM.com
0 votes
Jonas, , Houston, TX
Tue Feb 8, 2011
Hi Pink!

Congrats on getting ready for home ownership! The first thing I will address is a comment made below regarding "part time" income. I have never heard of a lender asking someone what hours they work. Your income is your income, part time, full time, or no time. As long as you have proof that that is what you paid Uncle Sam on...it is your income. It looks as though your credit score is OK also. The only issue I see is the 150K mortgage with $4K down.

FHA requires 3.5% down which would be $5250 not including closing costs (which you could ask for in negotiations)

Do you qualify for a VA loan? (veteran) Then you would be looking at 0% down

With your 30K income the max payment allowed is going to be $750mo respectively. That is based on a 30% front end qualifying ratio.

To get in a $150K mortgage and have a $750 payment you would need aprox. 50% down ($75K) Keep in mind you need to add property insurance, Taxes, and PMI. Total payment would be $777.62. (based on 1.5% property insurance, 3% property tax, and no PMI calculated)

So as you can see You are a ways off despite the comment about being on the cusp of qualifying.

With $4K down you would need to look at a property no more than $85K.

Keep in mind my specs for providing the info

3% property tax (your local rate will differ)
1.5% insurance (typical rule of thumb)

You still need to consider PMI unless you are able to put 20% down.

All this said.....

I recommend sitting down with a lender. They will be able to give you concrete information. Mine is just guideline info. And not 100% accurate (pretty doggon close though)

I hope this helps you!


Jonas Mancuso
Remax Int'l
http://www.talktohouston.com
0 votes
Joel Sanchez, Agent, Albuquerque, NM
Tue Feb 8, 2011
It sounds like you are right on the cusp of qualifying. I recommend that you speak with a lender about your situation, preferably not Wells Fargo. I just helped out a client last month with very similar criteria and he ended up qualifying for a home priced at 160K. The company was Wallick & Volk. Very helpful and everything is done in house at their office here in Albuquerque. You can call Amber Bennett at :
Phone: 505-823-1800
Cell: 505-263-6472
Fax: 505-823-9969
Amber will be more than happy to help you out. My guess is that depending on the kind of loan you get, you may have to have a little more for down payment. But as Amber for more clarification. Feel free to contact me at 505-514-8741 if you need help looking for a home after that.
Joel Sanchez
0 votes
*, , Albuquerque, NM
Tue Feb 8, 2011
Good Morning, Pink Lady!
You may qualify for an FHA loan coupled with MFA (Mortgage Finance Authority) down payment assistance. Let me know if you would like more information and I can refer you to several reputable lenders that can inform you of the qualifications. They will also be able to give you a good estimate of your total monthly payment including principal, interest, hazard insurance, mortgage insurance and property taxes which will allow you to make sure it fits comfortably into your budget. Feel free to email or call me if you have further questions - I am here to assist you!
0 votes
Ducarmel Ger…, Agent, Rio Rancho, NM
Tue Feb 8, 2011
Yes, providing buyer meets all other qualify able requirements; such as debt to income ratio. I just sold a home this past October, in the same price range, to a buyer who had similar qualification parameters.
0 votes
Carolyn R Wa…, Agent, Albuquerque, NM
Tue Feb 8, 2011
There is a possibility that you would...but I suspect that you might need a little more downpayment. The best way to know for sure is to consult with a mortgage broker or mortgage banker. They are experts and know the very latest about qualifying, and all the ins and outs of the latest mortgage programs (there are hundreds!) There is no obligation to them and you can do this by phone, or email. Here are a couple of names to try: Kathie Fuechsel at Rocky Mountain Mortgage kfuechsel@guildmortgage.com (505) 292-0405 and Karen Hopkins at Perennial Mortgage khopkins@perennial-mortgage.com 505 888-9500. I have had good service from both of them.
Good luck in your search, and please don't hesitate to call or email me with any further questions.
0 votes
Walt Vieira, , Albuquerque, NM
Tue Feb 8, 2011
If you are a 1st time buyer the amount of down payment would be fine because you would qualify for NMFA assistance. You also need to keep in mind in addition to down payment there are closing costs. The part time income must be verified and must have a 1 to 2 year history of "part time" income. Now a days lenders would like to see at least 18 months. Lenders are very leary of part time income unless it's well documented. Your credit score is fine.
Web Reference:  http://www.mortgagerebel.com
0 votes
Joshua Chris…, Agent, Albuquerque, NM
Tue Feb 8, 2011
Hi there Pink Lady Home Buyer,
My name is Joshua Christensen, Branch Mgr with Southwest Funding in Albuquerque. There are a couple of concerns to consider with your question.
First, If you are a Veteran, a VA loan has $0 Down required while an FHA loan requires 3.5% or $5250 in this case.
2nd, The payment on this home would be between $1000 - 1100. That is a 40% housing to income ratio (based on your Gross Income). Most Ethical Financial advisors recommend your housing ratio to stay at or below 30% of your Net Income.
I'd like to visit with you more to see what price range is a good one so you don't end up 'house poor' and regretting your buying decision later.
3rd, there may be issue with the part time employment. We'd need to discuss it more at length.
Web Reference:  http://www.ABQMortgages.com
0 votes
Billingham T…, Agent, Albuquerque, NM
Tue Feb 8, 2011
Hello Pink Lady

It depends on the amount you want to qualify for, but it certainly sounds like there is a good chance you can qualify for something. What kind of home are you looking for?
0 votes
Sally Grenier, Agent, Boulder, CO
Tue Feb 8, 2011
Hello Pink Lady,
You really need to speak directly with a mortgage broker or loan officer. There are other details they will need to know in order to pre-qualify or pre-approve you. I'm not a lender, but just off the cuff, I'm thinking you'll need more down payment and a higher income for a loan of $150K. For an FHA loan, you need a minimum of 3.5% down. Plus on top of that you may have closing costs (if the seller isn't willing to pay for them). The house may have an HOA fee, high taxes, etc. which will all be factored into your ability to qualify. They will also want to look at your debt-income ratio.(do you have other debts, i.e. car loan or credit card debt?).

Depending on all of these different factors, you may qualify for something, not necessarily 150K. Find a local lender to work with, then find a local Realtor to help you find something that fits your budget.

Good luck!
Web Reference:  http://www.sallygrenier.com
0 votes
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