Mortgage amount (insurance, loan, interest rate, property tax)

[jaynarie]

I have a question about mortgages. I just spoke with a realtor Friday and before he sends me listings he wants me to get preapproved for a mortgage. I am going to call my bank (BB&T) tomorrow and set up an appointment or whatever I need to do. However, I went past several houses in my area this weekend and FELL IN LOVE!!! It is a bank owned property priced well under market (and I am near Charlotte, NC where the market is still pretty good). I want to move quickly if I can afford it in case someone else snatches it up!

My question is how much of a loan do you think I can qualify for? I know someone can't tell me exactly. But 80K? 100K? 120K? Ballpark is what I'm looking for!

I currently pay $800 in rent monthly with no problem. I will receive over a $1000 raise for the next school year (I am a teacher). I also just found a second job on Friday which I plan to keep all year round. However, I want to be able to pretty much afford my mortgage payment with out a second job (just in case!). As a teacher in NC I have a very secure job!

Alright, I make 32K teaching (again, next year will be about 34,500).
I have ZERO credit card debt but have several accounts open (and will close them if needed- I was told to leave them open though!)
I do owe about 22K in student loans.
I have $10,000 to put down (not a lot, I know).
My second job is about $250/week before taxes. So, another 12K per year, bringing the total up to 44K (soon to be 46K). However, I will not have check stubs for a few weeks.
I have good credit. The score was 730 a few months ago when I paid of my credit cards. I am not sure what it is now and how long it takes for it to increase.


The house I LOVE is priced at $138K. So, I would need to finance nearly 130K. Playing with mortgage calculators, I know this would land me in the ballpark of $760 per month depending on the interest rate. Taxes on another property in the neighborhood are $1400 per year.


So, do I have ANY CHANCE of getting a loan this large???

[TwiloMike]

You would need to finance about 133.5K because you'll need funds for closing costs and you should have funds for reserves. I'm considering a 3% down payment on an FHA loan is the way you'll go. IF your part time job is on the books, you can qualify for a mortgage for this house. I don't see an issue.

[renriq02]

FHA only requires 2.25% as a down payment...and it doesn't require any reserves.
You will NOT be able to use the part-time income if you dont have at least 12months of paystubs with some lenders or 24months with most lenders.

Part time jobs are UNSTABLE for income AND employment.

Sellers can pay up to 6% of the closing costs on FHA mortgages.

If your student loans are 'deferred', then you will need to show the contract stating what your future monthly payment will be.
It's hard to determine what you qualify for as the approval system is automated, and it will determine your approval.
You may have an underwriter supercede the system if you receive a 'refer' on the approval certification.

[renriq02]

130k is the base loan amount...then you can roll in the 1.5% FHA funding fee into the loan amount
131,950 loan amount @ 5.75% 30yr fixed =

770.02 30yr fixed mortgage
116.67 (1400/12) property taxes
50.00 (600/12) Homeowner insurance
54.98 (659.75/12) Monthly FHA MIP payment
991.67 = Totaly Monthly Mortgage Payment

32,000/12 = 2667

991.67/2667 = Front End Ratio 37%
This is high for a front end loan. You may get approved, but they would prefer that you stay under 30%.

I used 32k as your income because this is your current income. They will not use future income.

Now you will need to add all of your monthly obligations including the student loans. You will need to add the 991.67 to it...then divide by 2667. Most lenders would prefer that you stay under 50%.

[sskkc]

Isn't there some type of teacher program in your area where teacher's get like $20k toward the down payment of their first home? Something about that was in today's paper, Parade section here in COS.

[renriq02]

most of the programs are state/county specific.

In Miami, FL...they give you 20% down at 0% for a period of 6yrs!
They dont have there here though

Originally Posted by sskkc

Isn't there some type of teacher program in your area where teacher's get like $20k toward the down payment of their first home? Something about that was in today's paper, Parade section here in COS.