buying homes (auction, foreclosure, mortgage, mortgage)

[lavisite333]

How much down do I need to buy a house

[MisterNY]

Originally Posted by lavisite333

How much down do I need to buy a house

Depending on how much the house costs. Usually percentages will vary depending on types of loans (3.5%, 10%, 20%). That's a broad question, there are so many variables. Give us more information. Price, budget, etc. I'd ask a mtg broker for specifics. Good luck though.

[garfieldlover]

Hey I need help knowing what I should expect with a mortgage too! I am looking to buy a house thats 190K, and I have solid credit. What do you mean by budget? I dont live in FTL.

[MisterNY]

Originally Posted by garfieldlover

Hey I need help knowing what I should expect with a mortgage too! I am looking to buy a house thats 190K, and I have solid credit. What do you mean by budget? I dont live in FTL.

Look at your debt to income ratio. I'm talking about budget, meaning what you have alloted each month for your bills, expenses, etc.
You don't have to live in FTL to have a budget . If you work, and have bills, by all means you should have a budget. It's essential. Are you sure you are ready to buy a house?

Example 1.

Makes $50k/year, 1 child, no car payments, very small credit card debt (let's say $1,500), no alimony/child support, no school loans, not a big spender, good credit score, with let's say $30k saved.


Example 2.
Makes $120k/year, 3 kids, 8 credit cards totalling $50k in debt, school loans worth let's say $40k, a car note of $500/month, obviously a bigger spender, with about the same amount of money saved, say $30k.


The Question is: Who would you loan money to for a house?

[MsFancyPants]

Provided Example 2 pays those debts on time, I'd loan to either of them. You neglect to say how much they want to spend on their house purchase.

To the OP: It's all relative. Dependent on how much you make, how much you owe, how much you have saved to put down, how much you have saved for closing costs.

I got into my first house, 130k purchase price, with 4k out of pocket. It was a VA foreclosure I bought at auction.

[MisterNY]

Well, to a certain extent. What counts is debt to income ratio, as well as good credit. Not just how much they make. That's where a lot of people make mistakes when lending. They look at salary alone.

In my scenario, we're talking same house, same price for both applicants. I was just giving him an example ( about budget, income etc)

Your case is similar to mine. Bought my first place, a 3/2/2cg for ($128K) a few years ago (in 2002), with about $5k out of pocket. Came up on that property .

Saved the money from that house till this day. I didn't let the whole market scare me (People going frantic thinking they'd never be able to afford a house again ).

Thank God I stuck to my guns. It's paying off!!