Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I work in education and make $50k a year.
I want so desperately to purchase a home/condo of my own.
I currently live in Miami, FL and was thinking of spending between $120k/$130k on a home if I qualify.
First of all--is that a reasonable price to be looking at? At $50k/year would I be able to afford a $130,000 home?
I have about $15k in student loan debt and about $1k in credit card debt.
I also have $6k in savings and another $3k in a retirement fund.
No car notes, no other outstanding debt.
My car insurance is $155/month.
No kids/no spouse, single
I'm so totally brand new to this whole thing and don't really know where to even begin? Given the information above am I even eligible to apply? I feel like I'm not....I dont know tho. I really have no idea....does anyone care to chime in and provide their insight? Also, feel free to ask other questions, as I gave u the information I thought u should know, but maybe they look at other things too?
I work in education and make $50k a year.
I want so desperately to purchase a home/condo of my own.
I currently live in Miami, FL and was thinking of spending between $120k/$130k on a home if I qualify.
First of all--is that a reasonable price to be looking at? At $50k/year would I be able to afford a $130,000 home?
I have about $15k in student loan debt and about $1k in credit card debt.
I also have $6k in savings and another $3k in a retirement fund.
No car notes, no other outstanding debt.
My car insurance is $155/month.
No kids/no spouse, single
I'm so totally brand new to this whole thing and don't really know where to even begin? Given the information above am I even eligible to apply? I feel like I'm not....I dont know tho. I really have no idea....does anyone care to chime in and provide their insight? Also, feel free to ask other questions, as I gave u the information I thought u should know, but maybe they look at other things too?
You wouldn't be disqualified based on income, but you also have to qualify on other criteria of loan-to-value and credit rating.
Of course it is possible to qualify for a mortgage while making 50k per year. Personally, I do not think that your price range is unaffordable for your income. However, it appears that you are not financially ready to buy. Pay off your credit card debt and save up a down payment and emergency fund. You do not want to use every available cent to get into a home, that is a recipe for financial disaster. Go over your budget and reduce expenses as well as you can, freeing up money to be used towards your goal of buying a home. Good luck!
Of course it is possible to qualify for a mortgage while making 50k per year. Personally, I do not think that your price range is unaffordable for your income. However, it appears that you are not financially ready to buy. Pay off your credit card debt and save up a down payment and emergency fund. You do not want to use every available cent to get into a home, that is a recipe for financial disaster. Go over your budget and reduce expenses as well as you can, freeing up money to be used towards your goal of buying a home. Good luck!
Quote:
Originally Posted by Petunia 100
You will not qualify for the best mortgage rates with a credit score that low. Work on raising it. Pay all of your bills on time, always, from now on.
Really appreciate this advice!
To be quite honest, I almost feel as if I'll never be able to buy a home. I dont even know why. It seems so daunting and yet I want to purchase so much more than renting. I'm beginning to see how much of my income I waste by renting. $1100/month to be exact.
Do u recommend I use my $6k in savings and pay off my $1k in credit card debt and perhaps put like $3k down on a loan?
To be quite honest, I almost feel as if I'll never be able to buy a home. I dont even know why. It seems so daunting and yet I want to purchase so much more than renting. I'm beginning to see how much of my income I waste by renting. $1100/month to be exact.
Do u recommend I use my $6k in savings and pay off my $1k in credit card debt and perhaps put like $3k down on a loan?
if you do an FHA loan you will need 3.5% down...so pay off the credit cards and start hoarding cash. There are grants and other programs you might qualify that could get you into a place for $3k down...but you will want to have access to more $$$ than that, because being a homeowner is expensive.
I'm beginning to see how much of my income I waste by renting.
Most of that can be remedied with a housemate or finding a less expensive place.
BOTH of which are something you should be planning to do regardless.
Quote:
Do u recommend I use my $6k in savings and pay off my $1k in credit card debt
and perhaps put like $3k down on a loan?
I suggest that you visit your Credit Union and discuss your particulars in private
with a financial adviser or maybe even a loan officer there.
Low credit scores can be remedied and all debt is not bad.
Only old, unpaid or high rate debt is bad.
So... first step is to improve things so you qualify for better rates.
Then it will come to finding a property worth buying (and owning)
that you can actually afford to live in and will want to live in.
You will not qualify for the best mortgage rates with a credit score that low. Work on raising it. Pay all of your bills on time, always, from now on.
Thats a lousy reason to put off buying a home. So she might have .5% higher interest.. big deal..
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
