Advivce needed (loan, property tax, credit, fees)

[Pootnami]

There seems to be a knowledgable and helpful bunch visiting this thread. So here's my situation. Fiance and I gross about 160000 (getting married in July). Starting to look at affordablility calculators. Each time I punch the number in I get a different amount. What is the general rule for affordability? Here are our numbers:

Gross Salary - 160000 (5 years it will be around 190000)
Debt - about 10,000 in cc, paying it off now
Car payment - 300 a month, other car is paid off
Saving - none because we have been paying off debt
My credit is around 720, future wife is Canadian (hasn't established credit Is this a problem? Or can we just rely on mine?

By the end of the summer, we will be debt free and then we will start saving. We have the ability to sock away 3000-4000 when cc's are done.
I hope to start seriously start looking by next Christmas. I have been reading about FHA loans and they sound good. We live on Long Island and are both teachers. Any programs for teachers and what is the benefit? My Community program? Is not having the 20 percent a major problem? Lastly, we are looking at spending max 450000. I realize this is all over the place, but any questions you can would help. Thanks!

[Daddys///M3]

The lack of a FICO is not an issue with FHA, depnding on your fiance's immigration status. She would need to show 3 alternate tradelines in her name (joint is ok) and paid on time for 12 months. Rent, car insurance, cell phone bill, utilities, etc. can all be used as alternate tradelines. However, if she can't show rent for 12 months then she will need 4 alternate tradelines. If you do not use her credit to qualify, then you cannot use her income either.

As far as what you can afford, use a 31% housing debt to income ratio. Use 1% of the loan amount divided by 12 to figure the insurance (a bit high but better safe), 0.5% of the loan amount divided by 12 for the mortgage insurance, and property tax records are readily available online so you should be able to find tax rates on the types of homes you are looking at.


According to my calculations, you can afford a $4133 a month PITI payment. This would include taxes, hazard insurance, mortgage insurance, SIDs, LIDs, PUD fees, and HOA fees. Including your car payment, your total debt to income ratio would be just over 33%, so you would be ok there.

[Pootnami]

Thanks for you unput. I really appreciate it. I'm still about nine months away from serious looking, but this is real helpful!

[Pootnami]

Silly question, but can her tradelines be bills and cc's with Canadian companies and a Canadian address?

[Daddys///M3]

I believe so, as long as you have the most recent 12 months cancelled checks or can get some sort of documentation from the Canadian companies.