if i make $50,000.00 per year, can i afford to buy a $320,000.00 home with 60% down?

Asked by dlofaro, Kihei, HI Mon Apr 1, 2013

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9
Kathren Rosa…, , Wailuku, HI
Mon Mar 10, 2014
Aloha, I am a Hawaii loan officer on Maui and from first look all looks workable. I can provide a more detailed answer if you would like to call me at 808-250-7077 and discuss your situation. Mahalo, Kathy
0 votes
Mark Guaglia…, Agent, Kihei, HI
Mon Apr 1, 2013
Another question to ask is :"can you afford to keep it"

Depending on whom you ask, you could get some surprisingly different answers.

"Can you afford" is as unique as you are and is based on many factors—your debt,credit score, income, savings, and most importantly, the house-buying plan you have in place.

Before you consider buying a home, you should be debt-free and have three to six months of expenses saved in addition to your down payment. Being debt-free with money in the bank will keep you from losing your home in the event of a job loss or illness.

Also, if you're married, you should be married for at least a year before you buy a home. Don't add the stress of a home purchase to a brand new marriage, and never buy real estate with anyone you're not married to...

Your are welcomed to check with our loan partner at http://www.kwhawaii.com/finance for a no obligation check to see if you can afford to buy and KEEP your home,
0 votes
Vivian Franco, Agent, Friendswood, TX
Mon Apr 1, 2013
Aloha!
To qualify for a loan, there are at least four things a lender will look at:

Your income

Your debt to income ratio (how much do you spend per month already)

Your credit score and history

The characteristics of the property you want to buy and whether it would be your primary residence or an investment property.

Please, contact me and I'll send you the contact information of local lenders who can help you figure this out.

Once you know how much you can afford, start looking for a home on Maui at
http://www.MyMauiOpenHouse.com
where you can search by MLS number, location, price, and much more.

Aloha!

Vivian Franco, M.S.
Realtor (S)
WIndermere Valley Isle Properties
The Shops at Wailea

Phone: (808) 214-3818

E-mail: alohafromvivian@aol.com

Website: http://www.MyMauiOpenHouse.com
0 votes
, ,
Mon Apr 1, 2013
That seems to be in the ballpark, but it depends on how much the property taxes and insurance are, and also what your other monthly debts are. The principal and interest portion of the payment will be somewhere around $600 on a 30 yr fixed mortgage, but you also have to account for the taxes and insurance.

Generally lenders look for your total debts to be around 45% or less of your gross monthly income. That means your entire mortgage payment (principal, interest, taxes, insurance) plus your other monthly debts (car payment, credit cards, student loans, etc) should not exceed $1875 per month.

Of course, "affording" to buy a home depends on your personal mindset as well. The payment on this home with everything included will likely be over $1000/month. Only you know if you can fit that into your personal budget. I'm a big believer in the saying,"just because you can doesn't mean you should". Once you figure out if you qualify, you should reflect on things to make sure you are comfortable with the payment.

I'd be glad to walk you through the pre-qualification process if you want to shoot me an email. Also on a side note, I'm going to be visiting Maui for the first time in a couple weeks with my girlfriend. If you have any tips on must see attractions or places to dine I would greatly appreciate the inside scoop.

Thanks!
Tony
0 votes
Maria Batista, Agent, Jersey City, NJ
Mon Apr 1, 2013
It looks like you can afford it since your mortgage amount will be $128,000, but in addition to your other debts, the bank will also look at your credit report and score to make sure you've been paying other bills and debts on time.
0 votes
Simon Campbe…, Agent, Miami Beach, FL
Mon Apr 1, 2013
Lenders focus on the loan amount, not just the purchase price. Putting 60% down is a definite security for the bank. This means that you will be financing $128,000. Your payment will be less than $650.

As a general guideline, your monthly mortgage payment, including principal, interest, real estate taxes and homeowners insurance, should not exceed 33 percent of your gross monthly income.

Formula: Monthly Salary x 0.33
$4,167 x 0.33 = $1,375

Banks will also look at what you are paying on all of your debt including housing expenses, car loans, child support and alimony, credit card bills, student loans and homeowner association fees. Your total monthly debt obligation should not exceed 40 percent of your gross income.

Formula: Monthly Salary x 0.40 = $1,667

The real question is whether you want to lock $192,000 into a house.
0 votes
Alan Walls, , Maui County, HI
Mon Apr 1, 2013
Dlofaro, Aloha!

Great question. Yes, if you have 60% cash to put down for the purchase of a property priced at $320,000 ($192,000 down) your monthly mortgage at a conservative 4.5% interest rate is only $650. With an annual income of $50,000 you can afford that easily and will have no problem qualifying for a loan.

Do you have a specific property already picked out?

I would be more than happy to help you make this a reality. Email me back at alan.walls@windermere.com and we can go from there.

Mahalo,

Alan K. Walls, Realtor (S)
Your Maui Real Estate Coach
Real Estate Success Requires TEAMWORK; Let Me Be Your Coach!

MauiRealEstateCoach.com - search for properties state-wide.

Windermere Valley Isle Properties
The Shops at Wailea
Alan.Walls@Windermere.com
0 votes
Mark Guaglia…, Agent, Kihei, HI
Mon Apr 1, 2013
0 votes
Howard Dinits, Agent, Kihei, HI
Mon Apr 1, 2013
Yes, you can!
I would love to be your Buyer's agent.
Do you need a referral for a good lender?

Howard Dinits R(B)
RE/MAX Resort Realty
Direct 808-874-0600
Toll Free 877-434-6487
fax 877-334-6487
http://www.EasyMauiRealEstate.com
0 votes
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