Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Too high in today's lending environment. They'll look for 33% max for mortgage, 38% when you consider other costs (insurance, taxes, etc.).
If you're putting $200K down for a $350K house and still have 40% DTI you need to focus more on earning and less on buying.
I figured that with good money reserves in the bank and half down on a home (40-50 percent down payment) that one would be able to find and live in a modest home at 350k, no? You should have seen what I was researching a couple of weeks back when I thought that the debt to income ratio could be stretched to .50 in certain cases. A $2600 month mortgage with our loans included for cars. I now know that that is not possible.
People that I know who do undocumented income utilize it towards gas and food. Potentially if we decide to do that we would be looking at 800 to 1200 extra a month.
I figured that with good money reserves in the bank and half down on a home (40-50 percent down payment) that one would be able to find and live in a modest home at 350k, no? You should have seen what I was researching a couple of weeks back when I thought that the debt to income ratio could be stretched to .50 in certain cases. A $2600 month mortgage with our loans included for cars. I now know that that is not possible.
I realize you have income off the books, but lenders will not consider that. BTW, if it's truly "off the books" and not declared to the IRS you're evading taxes, but that's a whole other issue.
The down payment isn't the issue. Sure, it might be possible that DTI is stretched to 50%, but you'll pay a higher interest rate for it because most lenders won't touch it. No way, no how. Also, DTI is calculated based upon gross income, not net. So the 50% that isn't paying your mortgage has to pay income taxes, food, etc.
People that I know who do undocumented income utilize it towards gas and food. Potentially if we decide to do that we would be looking at 800 to 1200 extra a month.
How steady is this income? Even factoring it in you're STILL at a pretty high DTI.
Do whatever you want, but the advice from everyone here has been consistent. Get off your rear end and get a "documented" job, one that pays a decent amount, before committing to buying a house. The closing costs alone will eat you alive.
I realize you have income off the books, but lenders will not consider that. BTW, if it's truly "off the books" and not declared to the IRS you're evading taxes, but that's a whole other issue.
The down payment isn't the issue. Sure, it might be possible that DTI is stretched to 50%, but you'll pay a higher interest rate for it because most lenders won't touch it. No way, no how. Also, DTI is calculated based upon gross income, not net. So the 50% that isn't paying your mortgage has to pay income taxes, food, etc.
I do not have income off the books. I am saying that if we were to have income off the books we could potentially make that but that's not what we are currently doing.
How steady is this income? Even factoring it in you're STILL at a pretty high DTI.
Do whatever you want, but the advice from everyone here has been consistent. Get off your rear end and get a "documented" job, one that pays a decent amount, before committing to buying a house. The closing costs alone will eat you alive.
I make 28,000 a year before taxes and she makes 40,000. I believe we can live in a modest home with taxes under 9000. I went from doing only temp work two years ago to having this job and keeping a consistent and making a constant paycheck every two weeks.
You need to speak with a mortgage broker. They will be the one to tell you what you qualify for.
I would NOT sink $200K into a property that you are more than likely not going to be able to afford and wind up losing 2-3 years down the road. I would save that money. Rent for a few years. Earn some more. Then find a house that you can put 20% down on.
I make 28,000 a year before taxes and she makes 40,000. I believe we can live in a modest home with taxes under 9000. I went from doing only temp work two years ago to having this job and keeping a consistent and making a constant paycheck every two weeks.
You really can't. The only reason you can have this discussion is because of the $200K you have in savings. Based on your income, the most you should be looking for in a purchase would be a 1 bedroom co-op for under $85K.
You need to speak with a mortgage broker. They will be the one to tell you what you qualify for.
I would NOT sink $200K into a property that you are more than likely not going to be able to afford and wind up losing 2-3 years down the road. I would save that money. Rent for a few years. Earn some more. Then find a house that you can put 20% down on.
Oddly enough when I spoke to a loan officer without running our credit I just wanted to know what type of loan the bank would give us at 200% down and 1000 in taxes etc. and the guy said $289,000 loan. That's what confused me because when I looked up homes for 450k our debt to income was at 50%. The math for me was 289+200 is $489,000 home to afford.
We can surely rent locally for 1800 a month. But why rent what we can afford a home and pay $1700 for rent and start a family in a few years and start building equity?
UNess you and your wife earn closer to 150k a year I wouldn't be so quick to start a family. 69k with a 2000/month housing bills leaves zero quality of life.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
