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Old 09-15-2014, 04:17 AM
 
7 posts, read 52,310 times
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There is a house on the market that I absolutely love for 200,000. Would I be crazy to try to get this house with my salary? I would put 5% down conventional loan and get one roomate, perhaps two. I would like to get a house before the houses go up more and in my area 190 is probably the cheapest you're gonna get. My take home pay is probably about 2200-2300 a month. I have no debt and only cell phone, car insurance, gas, and internet to worry about. And of course the utilities if I buy it. Right now I pay 775 for an apartment and always seem to have around 1100-1200 left over after all expenses.



Let me know your opinions. I would love to buy a house for less but anything within 30 minutes of me is quite expensive.
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Old 09-15-2014, 07:39 AM
 
Location: Austin
7,205 posts, read 18,941,769 times
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You should probably do some of the online mortgage calculators. AT $41k, you're not going to get anywhere near $200k without more money down. Typical, right now, with rates in the low 4% range, the average person can qualify for approximately 3.5% of their salary, sometimes a little more depending on their situation. For you, that's under $145k. If you want a $200k house, you need to bring $55k to closing... plus closing costs... can you swing that?
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Old 09-15-2014, 08:28 AM
 
Location: Brookhaven
379 posts, read 477,090 times
Reputation: 392
No
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Old 09-15-2014, 08:32 AM
 
16,719 posts, read 16,065,032 times
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No bank is going to loan you that much money on your salary with hardly any down.
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Old 09-15-2014, 09:44 AM
 
Location: Southern California
4,453 posts, read 5,750,957 times
Reputation: 2220
Sure
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Old 09-15-2014, 12:04 PM
 
Location: Boise, ID
8,047 posts, read 25,295,798 times
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Can you afford it? Maybe, if you have no other debts, and are going to get a couple of roommates.
Can you qualify for it? Almost certainly not, sorry.

Falconhead meant to say 3.5x your salary, rather than 3.5%, but otherwise is right. You are going to qualify for around $145k, so if you want to buy something for more than that, you'll need to come up with the rest in down payment.

Don't forget that if you buy for less than 20% down, you'll also have to pay PMI, which is going to be a couple hundred a month. Plus taxes and insurance. You payment would go up to a lot more than the $775 you are paying now. $193,000 (96.5% of $200,000) at 4% on a 30 year loan is going to be $921 a month, plus probably several hundred for taxes and insurance, plus a couple hundred for PMI. You are looking at a monthly payment of nearly double what you are paying for rent now. That isn't counting utilities, HOA dues, maintenance, appliances, yard upkeep, etc.
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Old 09-15-2014, 12:45 PM
 
6,105 posts, read 8,409,164 times
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I was approved for a $230K FHA loan with a $50K salary (ended up not spending a little less than that but also have a wife's salary that was not included in the approval process). I think you might be able to get approved for it.

Yes, your mortgage payment might be almost double your current rent so if you're living by yourself you probably won't have much money left over but if you have a roommate you'd probably be similar to where you are now...2 roommates could likely pay most of your mortgage payment.
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Old 09-15-2014, 02:43 PM
 
7 posts, read 52,310 times
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Actually I've had a couple lenders say I should get approved for around 210 since I have zero debt. I already know it'd be double my payment but that's why I would have roomates. I would build equity in this area very quickly. My friend bought a house in the same area for 168k last year and now it's reappraised at 209k in just one year and still climbing. So hopefully it wouldn't take me to long to shed the PMI.
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Old 09-15-2014, 03:01 PM
 
Location: The Triad (NC)
31,168 posts, read 67,997,524 times
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Quote:
Originally Posted by BayRaider510 View Post
41k salary, can I buy a 200k house?

No.

Quote:
There is a house on the market that I absolutely love for 200,000.
Would I be crazy to try to get this house with my salary?
Yes.



Quote:
Let me know your opinions.
Save. Get a partner (with the other $40K+ needed)
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Old 09-15-2014, 06:09 PM
 
Location: Powell, Oh
1,846 posts, read 4,283,383 times
Reputation: 1074
Quote:
Originally Posted by BayRaider510 View Post
Actually I've had a couple lenders say I should get approved for around 210 since I have zero debt. I already know it'd be double my payment but that's why I would have roomates. I would build equity in this area very quickly. My friend bought a house in the same area for 168k last year and now it's reappraised at 209k in just one year and still climbing. So hopefully it wouldn't take me to long to shed the PMI.
FHA rules changed last year, and you can't get rid of PMI at all. It's there for life of loan.
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