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My girlfriend is looking to buy a house with some land in Houston, TX. She will be the one buying the house, I have no legal relationship with her.
The house is an older house, about 15 years old, with about 8 acres of land, so the total plot is about 9 acres.
The asking price is close to 800k.
The land can receive an agricultural assessment if certain agricultural related activities are performed on it. My partner plans to perform those activities.
She has a very good credit history, has a good income over about 150k a year and no debt, i.e. no outstanding car payment, house payment, loans etc.
I can ask her to run her reports and post the scores here. If she retrieves her scores will that count as a hit on her record?
Can anyone tell me the best way to finance this transaction:
1) She is a first time home buyer
2) She will put 20% cash downpayment
3) Does she need to finance the remainder through a bank/mortgage broker or are there government programs, etc. I feel that her income may be too high to qualify for such programs or/and the value of the transaction may be too high?
4) If anyone has any suggestions on mortgage companies/brokers to use in the Houston, TX area please let me know.
Base payment on something like that is coming in around $3,055. That's one jumbo loan, a $640k 30-year fixed at 4.000%. Add to that monthly calculations for property taxes and homeowners insurance and it's looking like (about) half her gross monthly income is going to the house payment alone.
I try to provide information without judgment here, but you should look into utility costs and upkeep for the property, get a homeowners insurance quote, and verify property taxes.
You can improve the rate, but I am hesitant to suggest an ARM to a first time buyer with that size loan amount. ARMs can have initial fixed periods of 3/5/7/10 years, but a 10-year fixed ARM rate for something like this is equal to the 30-year fixed, so it's not really useful
Do the AG exemption AFTER you close on the mortgage.
Although USDA does not have a maximum loan amount, income caps hover in the $70-80k/yr range.
I'd suggest a lender, but it would be me, and that's not within forum rules.
Also look at/ballpark accessible cash reserves, post-closing. You really want to be (close to) liquid for six months of all costs on the place, but your mileage will vary according to different lenders' guidelines.
My girlfriend is looking to buy a house with some land in Houston, TX. She will be the one buying the house, I have no legal relationship with her.
The house is an older house, about 15 years old, with about 8 acres of land, so the total plot is about 9 acres.
The asking price is close to 800k.
The land can receive an agricultural assessment if certain agricultural related activities are performed on it. My partner plans to perform those activities.
She has a very good credit history, has a good income over about 150k a year and no debt, i.e. no outstanding car payment, house payment, loans etc.
I can ask her to run her reports and post the scores here. If she retrieves her scores will that count as a hit on her record?
Can anyone tell me the best way to finance this transaction:
1) She is a first time home buyer
2) She will put 20% cash downpayment
3) Does she need to finance the remainder through a bank/mortgage broker or are there government programs, etc. I feel that her income may be too high to qualify for such programs or/and the value of the transaction may be too high?
4) If anyone has any suggestions on mortgage companies/brokers to use in the Houston, TX area please let me know.
Thank you,
Mengembara
Based on the bolded text. She needs to learn about what she is planning to get herself into (not you).
With an income of $150k, I don't see any lender giving more than $550-600k for the loan amount. Taxes in the Houston area are high, and you have no guarantee on the ag exemption, so don't depend on it. Many people try for it, and most fail. I see absolutely no way a reputable lender will allow her to have a loan for an $800k house on that salary.
With an income of $150k, I don't see any lender giving more than $550-600k for the loan amount.
We have a HH income over $150K, no debt, 800 credit scores and most we were approved for was a $650K mortgage.
That was with 20% down, and having 6 month liquid in addition
OP, pretty much your first step is to go talk to a mortgage broker and get a pre-approval. It will give you an idea of what you are looking at in terms of what you would be approved for. Most likely she would be getting a jumbo loan, but getting approved for $640K mortgage might be at the limit on that income in addition to the 20% down, additional savings to cover 6 months of expenses, and closing costs as well as other expenses.
That's too much mortgage for that salary and I guarantee that property taxes and utilities will run you another $25k a year.
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