How much of a home mortgage will I get approved for?

How much of a home mortgage will I get approved for?

Here'-s my stats:Last year'-s income: $37,000 although it could go to $50,000 this yearCredit Scores: 704, 776, 780Debt: 0 (seriously)Net Worth: $23-25K with $17-18K being liquid and available for down payment, although I would like to put less than $10K out of pocket for closing and down payment.First time home buyer, I also qualify for VAThe property that I'-m looking at is a $189,000K (asking) 2-unit in a good location. The main unit is owner occupied. The other unit is renting for $425 per month. I'-m not sure if this will come into play or not but I currently live in the area and the rent should be more like $600-650. My current roomate would also be moving in with me and would pay $400 per month.Do you think I can get a 30 year fixed for this? If so, what do you think my rate would be? If not, what ballpark price for a home should I be looking for? Any suggestions or thoughts would be helpful. Thanks for your help!

W

Hello - There are programs out here to help you (ok) There is the My Community Program, Flex 100 program - if you talk to a lender / bank / broker they know about these programs. You can get a 100 percent loan with no problem based on your credit score alone. The type of program is a different matter. FHA @97 percent, My Community Program at 100 percent just to name 2 programs - and believe me there are many types of programs.Lenders look at your middle credit score, of 776 and YOU would have no problem. You could go full doc, and used your income, or use 12 month bank statements. 12 month bankstatements is also considered full doc. Employment will be verified on these programs. You can also go No Doc at 95 percent of the appriased value (bring in 5 percent) and have the seller help you with 3-6 percent of the closing costs.Please talk to someone that is knowledgeable - DO not have them pull your CREDIT - a Direct Lender/Broker only has to pull your credit ONE time and use that credit report. Some banks are limited in what programs they offer - so when you talk to someone check they out (ok)Your rate would be anywhere from 6.125 30 yr fixed to 6.5 percent depending on lenders. That is considered a par rate.If your debit ratios are high (lenders look at your DTI) Debit to income. For FHA and VA the ratios are 43 percent. Than the No Doc program or No ratio program would be good for you. Or you could go with a 40 year term to lower your hose payment.Ratios used to determine whether a borrower can qualify for a mortgage. They are based on a borrowers housing expense as a percentage of income and his total debt as a percentage of income.Debt to Income Ratio or DTI can be improved by paying down liabilities with high monthly payments compared to the balance on the account. In some cases some of your debts can be excluded from the calculation of your DTI. For example if you have an auto loan and you have less than 10 payments left you can exclude this monthly payment from the calculation thus reducing your DTI.There are several loan types that can help you if you have a high debt ratio with good credit. One is called a No Ratio loan: The Borrower's source of income is verified, but the income amount is neither disclosed nor verified. The second type of loan is called No Income No Asset: The Borrower's employment, income, or assets are not disclosed or verified. A third type of loan usually associated with FHA is the Streamline loan: No income documentation or disclosure is required.When evaluating your Debt-to-Income ratio, the Back DTI plays a more important role than the Front DTI. The Front DTI is calculated by dividing the proposed housing expenses, also referred to as PITI, by the borrowers' total gross income. Housing expenses or PITI is defined as the inevitable expenses incurred as a direct result of owning the subject property, such as mortgage payment, property tax, hazard insurance, (hence the acronym for Principal, Interest, Taxes, and Insurance), homeowner association dues, private mortgage insurance, etc. The Back DTI is calculated by dividing the borrowers' total monthly obligations by the total gross monthly income. Total monthly obligations includes not only the housing expenses, but also all installment debt payments such as leased/financed vehicle and creditcard payments. Most lender banks would allow a borrower's Front DTI ratio to go above 45% if the borrower has no other obligations.Qualifing ratios also called your debit to income ratios or dti consist of your total verifiable gross monthly income divided by your new proposed payment, all your other monthly debits such as Minimum Payments on charge cards, auto loan or lease payments, student loans, consumer loans, child support and alimony.A debt to income ratio is simply a way of determining how much money is available for your monthly mortgage payment after all your other recurring debt obligations are met. Qualifying ratios are guidelines, an excellent credit history can help you qualify for a mortgage loan even if your debt load is over and above the limit. Typically conventional loans have a qualifying ratio of 28/36. Usually an FHA loan will allow for a higher debt load, reflected in a higher (29/41) qualifying ratio. The first number in a qualifying ratio is the maximum percentage of your gross monthly income that can be applied to housing (including loan principal and interest, private mortgage insurance, hazard insurance, property taxes and homeowner's association dues). The second number is the maximum percentage of your gross monthly income that can be applied to housing expenses and recurring debt. Recurring debt includes things like car loans, child support and monthly credit card payments.If your ratio is high, but you have other great factors, like Zero (O) debit as mentioned, and you have savings - than yoiu would have no problem Many times, borrowers fall outside the guidelines, but have strong compensating factors that reflect low credit risk. Some compensating factors are history of savings, long-term job stability, a substantial down payment or excellent credit history will influence the decision to approve or deny a particular loan.Hope this was not too lengthy - and check out this site.www.hud.govwww.bankrate.comSource(s):Wanda Ellis, Meridias CapitalDirect Lender and Broker for 7 years and love helping my clients. Underwrite in the US (FHA/VA/Residential/CommercialInvestment/Conforming/Sub-prime)

SCH

It is unlikely you would get approved for more than 3 times your verifiable annual income (so even if you might make 50k if they can't verify it they will go with your last years tax return amount. Assuming 3 times you would be approved for about SCH

It is unlikely you would get approved for more than 3 times your verifiable annual income (so even if you might make 50k if they can't verify it they will go with your last years tax return amount. Assuming 3 times you would be approved for about SCH

It is unlikely you would get approved for more than 3 times your verifiable annual income (so even if you might make 50k if they can't verify it they will go with your last years tax return amount. Assuming 3 times you would be approved for about SCH

It is unlikely you would get approved for more than 3 times your verifiable annual income (so even if you might make 50k if they can't verify it they will go with your last years tax return amount. Assuming 3 times you would be approved for about $111k. The credit score would be what affects the interest rate and not the amount let to you. Also most lenders will not loan 100% of loan to value (ie if the house is worth $189k you will not get a loan for that amount you would get a loan for 80% of that amount).Being that you qualify for VA you may get qualified for 100% but you will likely not get qualified for more than 3 times your annual income...Source(s):Banker

11k. The credit score would be what affects the interest rate and not the amount let to you. Also most lenders will not loan 100% of loan to value (ie if the house is worth SCH

It is unlikely you would get approved for more than 3 times your verifiable annual income (so even if you might make 50k if they can't verify it they will go with your last years tax return amount. Assuming 3 times you would be approved for about $111k. The credit score would be what affects the interest rate and not the amount let to you. Also most lenders will not loan 100% of loan to value (ie if the house is worth $189k you will not get a loan for that amount you would get a loan for 80% of that amount).Being that you qualify for VA you may get qualified for 100% but you will likely not get qualified for more than 3 times your annual income...Source(s):Banker

89k you will not get a loan for that amount you would get a loan for 80% of that amount).Being that you qualify for VA you may get qualified for 100% but you will likely not get qualified for more than 3 times your annual income...Source(s):Banker

11k. The credit score would be what affects the interest rate and not the amount let to you. Also most lenders will not loan 100% of loan to value (ie if the house is worth SCH

It is unlikely you would get approved for more than 3 times your verifiable annual income (so even if you might make 50k if they can't verify it they will go with your last years tax return amount. Assuming 3 times you would be approved for about SCH

It is unlikely you would get approved for more than 3 times your verifiable annual income (so even if you might make 50k if they can't verify it they will go with your last years tax return amount. Assuming 3 times you would be approved for about $111k. The credit score would be what affects the interest rate and not the amount let to you. Also most lenders will not loan 100% of loan to value (ie if the house is worth $189k you will not get a loan for that amount you would get a loan for 80% of that amount).Being that you qualify for VA you may get qualified for 100% but you will likely not get qualified for more than 3 times your annual income...Source(s):Banker

11k. The credit score would be what affects the interest rate and not the amount let to you. Also most lenders will not loan 100% of loan to value (ie if the house is worth SCH

It is unlikely you would get approved for more than 3 times your verifiable annual income (so even if you might make 50k if they can't verify it they will go with your last years tax return amount. Assuming 3 times you would be approved for about $111k. The credit score would be what affects the interest rate and not the amount let to you. Also most lenders will not loan 100% of loan to value (ie if the house is worth $189k you will not get a loan for that amount you would get a loan for 80% of that amount).Being that you qualify for VA you may get qualified for 100% but you will likely not get qualified for more than 3 times your annual income...Source(s):Banker

89k you will not get a loan for that amount you would get a loan for 80% of that amount).Being that you qualify for VA you may get qualified for 100% but you will likely not get qualified for more than 3 times your annual income...Source(s):Banker

89k you will not get a loan for that amount you would get a loan for 80% of that amount).Being that you qualify for VA you may get qualified for 100% but you will likely not get qualified for more than 3 times your annual income...Source(s):Banker

11k. The credit score would be what affects the interest rate and not the amount let to you. Also most lenders will not loan 100% of loan to value (ie if the house is worth SCH

It is unlikely you would get approved for more than 3 times your verifiable annual income (so even if you might make 50k if they can't verify it they will go with your last years tax return amount. Assuming 3 times you would be approved for about SCH

It is unlikely you would get approved for more than 3 times your verifiable annual income (so even if you might make 50k if they can't verify it they will go with your last years tax return amount. Assuming 3 times you would be approved for about SCH

It is unlikely you would get approved for more than 3 times your verifiable annual income (so even if you might make 50k if they can't verify it they will go with your last years tax return amount. Assuming 3 times you would be approved for about $111k. The credit score would be what affects the interest rate and not the amount let to you. Also most lenders will not loan 100% of loan to value (ie if the house is worth $189k you will not get a loan for that amount you would get a loan for 80% of that amount).Being that you qualify for VA you may get qualified for 100% but you will likely not get qualified for more than 3 times your annual income...Source(s):Banker

11k. The credit score would be what affects the interest rate and not the amount let to you. Also most lenders will not loan 100% of loan to value (ie if the house is worth SCH

It is unlikely you would get approved for more than 3 times your verifiable annual income (so even if you might make 50k if they can't verify it they will go with your last years tax return amount. Assuming 3 times you would be approved for about $111k. The credit score would be what affects the interest rate and not the amount let to you. Also most lenders will not loan 100% of loan to value (ie if the house is worth $189k you will not get a loan for that amount you would get a loan for 80% of that amount).Being that you qualify for VA you may get qualified for 100% but you will likely not get qualified for more than 3 times your annual income...Source(s):Banker

89k you will not get a loan for that amount you would get a loan for 80% of that amount).Being that you qualify for VA you may get qualified for 100% but you will likely not get qualified for more than 3 times your annual income...Source(s):Banker

11k. The credit score would be what affects the interest rate and not the amount let to you. Also most lenders will not loan 100% of loan to value (ie if the house is worth SCH

It is unlikely you would get approved for more than 3 times your verifiable annual income (so even if you might make 50k if they can't verify it they will go with your last years tax return amount. Assuming 3 times you would be approved for about SCH

It is unlikely you would get approved for more than 3 times your verifiable annual income (so even if you might make 50k if they can't verify it they will go with your last years tax return amount. Assuming 3 times you would be approved for about $111k. The credit score would be what affects the interest rate and not the amount let to you. Also most lenders will not loan 100% of loan to value (ie if the house is worth $189k you will not get a loan for that amount you would get a loan for 80% of that amount).Being that you qualify for VA you may get qualified for 100% but you will likely not get qualified for more than 3 times your annual income...Source(s):Banker

11k. The credit score would be what affects the interest rate and not the amount let to you. Also most lenders will not loan 100% of loan to value (ie if the house is worth SCH

It is unlikely you would get approved for more than 3 times your verifiable annual income (so even if you might make 50k if they can't verify it they will go with your last years tax return amount. Assuming 3 times you would be approved for about $111k. The credit score would be what affects the interest rate and not the amount let to you. Also most lenders will not loan 100% of loan to value (ie if the house is worth $189k you will not get a loan for that amount you would get a loan for 80% of that amount).Being that you qualify for VA you may get qualified for 100% but you will likely not get qualified for more than 3 times your annual income...Source(s):Banker

89k you will not get a loan for that amount you would get a loan for 80% of that amount).Being that you qualify for VA you may get qualified for 100% but you will likely not get qualified for more than 3 times your annual income...Source(s):Banker

89k you will not get a loan for that amount you would get a loan for 80% of that amount).Being that you qualify for VA you may get qualified for 100% but you will likely not get qualified for more than 3 times your annual income...Source(s):Banker

89k you will not get a loan for that amount you would get a loan for 80% of that amount).Being that you qualify for VA you may get qualified for 100% but you will likely not get qualified for more than 3 times your annual income...Source(s):Banker

Ask

insurance

Popular Q&A

Should i have my g2 licence for sure to get my auto insurance?
With insurance your G1 is considered a learners permit. Obviously you know that you can only operate a vehicle with a fully licensed driver with you. A lot of online quoting systems are geared towards the norm so when you attempt to get a quote online and mention the G1 is it not configured...

What is a reasonable auto insurance liability amount, i don't believe the current legal limits are enough?
Great question and analysis. I wish more people would look at the laughable state minimums and recognize that they aren't enough.The answer depends on what you have for answers to protect, but I normally suggest a minimum of 100/300/100 for liability limits and 50/100 for uninsured and underinsured...

What car insurance companies are in Washington? Can I get a list to look up?
http://www.carinsurancecompanies.com/CLICK your state from the "State Guides" button in the upper right corner of the homepage.A word of experience wisdom to a NEW driver...Cheaper isn't always the best route. SERVICE when needed is of utmost importance.Personally, I highly recommend State...

If Obama's ideas are so great why has he it implemented at least one during the four years?
Getting agreement with the Russians to reduce Nuclear Weapons arsenals from being able to destroy the world 300 times to JUST 15 times over.1. Passed Health Care Reform: After five presidents over a century failed to create universal health insurance, signed the Affordable Care Act (2010)....