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My husband and I have rented our entire lives and this year. We were planning on buying a home in 2 or 3 years (we were just married last year) however my father recently passed away leaving my mother living alone. She is disabled (from a car accident) so my husband and I made the decision to find a place to live with her (she currently rents). We could rent a house for $1500-$2000 per month, if we could find the right house. So instead we've decided now is the time to buy. We're just wondering if we're ready financially.
We both make a decent income however we live in an expensive market (Northeast) where home prices and taxes are both high. Our annual gross annual income is $137K (and expected to be even higher this year-I just recieved a $7K raise). Our credit scores are so so. My husband's mid-score is 635 and mine is 660. We don't have much in savings... about $15K. Our total debt including CC cards and car loans is $22K.
Average homes in our market are $325-$400K. Starter homes are $250-$300K.. but don't offer the space we need for my mother. The problem we face is that every time we find a house we want our mortage + taxes and insurance push our PITI to over $3K per month. My husband wants to wait another year until we have another $10K in savings to put down. We just can't wait that long... we need to find a place for my ML to live or commit her to a nursing home where her retirement and finances will be controlled by the state.
We're wondering what our best options may be. Rent to own, seek 100% finiancing? We make too much for SONYMA or other first time buyers assistance?
Location: central, between Pepe's Tacos and Roberto's
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FHA does not have any max income limits, but they do have max loan limits that are MSA specific. So the metropolitan area (or county if it's more rural) will determine how much you would be allowed to borrower. Their is a 3% minimum borrower contribution and FHA will allow 6% seller concessions. Their is also a reduced MI coverage requirement.
If the FHA limits for the area will allow, based on a $325K purchase price, with 3% down ($9750), and based on a rate of 6% (just a random number, I'm not quoting you a rate) your monthly P&I payment would be around $1900. The MI would run about $132 a month. Hope this helps.
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