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Old 02-25-2018, 09:02 AM
 
12,018 posts, read 9,307,217 times
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Quote:
Originally Posted by NewJerseyForever View Post
To the original poster, you can learn more about what you would need to qualify here... FHA Guidelines

Meanwhile, I agree with the earlier post that you problem is your income. Making minimum wage two people should earn more than $28k. In fact, you should NOT buy a home with that income level. Especially an FHA backed mortgage where you will fork over too much of your take home pay in mortgage insurance premiums.

At this point, you should just rent.
It depends how much rent is. there are many places in this country where you can buy a home for about $50K and the total mortgage with insurance and taxes will be under $500. Yes it will be an older home and maybe a small 2/1 but paying $500 mortgage for a small home is better than paying $700 a month for a 1 bedroom apartment. Oh and these are homes that are move in ready that pass FHA inspection so you know everything works even if the bathrooms and kitchens are outdated.

I just checked and in Erie, PA there are some decent looking homes for under $40K. Edit, I changed the filters and there are actually homes under $20K that you can buy there.

And the great thing about low income or minimum wage is you can get a job almost anywhere, and if you are a good worker you can move up or increase your income.

Last edited by LifeIsGood01; 02-25-2018 at 10:10 AM..
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Old 02-25-2018, 09:58 AM
 
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Quote:
Originally Posted by jen78fl14 View Post
Well my husband and I are trying to find out if we would qualify for a loan. I have a couple of lenders I need to call but I was hoping I could get some information here too.. So, basically our income is not all that high. Between my husband and myself Id say its about 28K a year. His credit score is at 619, mine is at 599. I do have some credit accounts still open that I was not able to pay off. I also have a student loan but I am in an income-driven repayment plan. My husband only has a few medical accounts open on his report. I did some calculations online it seems our debt to income ratio is about 37% , so its rather high. We are looking to be approved for an FHA loan. Also we are looking at a down payment assistance program in our state and would need to qualify for that as we do not have money for much of a down payment. one really big question is what amount of a loan could we be approved for considering our income and credit? Right now I am wondering if it would be best to just apply for the loan in his name only since my credit still has some negative factors on it. I just really need to get an idea of buying a home is feasible right now or if it makes more sense to just rent right now. Our apartment lease ends feb 2, 2018 so we will need to be moving very soon. I really appreciate honest feedback on if we are good candidates for a loan right now or not so I will know how to move forward. Thanks
Don't listen to the nay sayers. With a $28K income you should be able to afford a $100K home depending on your outstanding revolving credit payments. If you are ready to look find a real estate agent who knows the area get a preapproval or prequalification letter and a good agent should know banks and lenders who are willing to work with you as well as any first time homeowner incentive or down payment assistance programs. Good Luck.

I never thought I would be able to afford a home, so I looked into it and found that if I moved to a lower prices area of homes I may be able to find a home and at the end of next month I will be in my home for 2 years. I decided I could afford a home when I saw a post on a forum where a person was getting a little over $600 a month on SSI and a few years ago when home prices were low, after the crash, he was able to buy a 3/2 foreclosure in Las Vegas with his income.
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Old 02-27-2018, 12:10 PM
 
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Quote:
Originally Posted by LifeIsGood01 View Post
Don't listen to the nay sayers. With a $28K income you should be able to afford a $100K home depending on your outstanding revolving credit payments. If you are ready to look find a real estate agent who knows the area get a preapproval or prequalification letter and a good agent should know banks and lenders who are willing to work with you as well as any first time homeowner incentive or down payment assistance programs. Good Luck.

I never thought I would be able to afford a home, so I looked into it and found that if I moved to a lower prices area of homes I may be able to find a home and at the end of next month I will be in my home for 2 years. I decided I could afford a home when I saw a post on a forum where a person was getting a little over $600 a month on SSI and a few years ago when home prices were low, after the crash, he was able to buy a 3/2 foreclosure in Las Vegas with his income.


I completely agree. Purchasing anything is better than renting. OP could possibly buy a condo on that income. Here is a calculator that Op can plug in the numbers.
https://www.bankrate.com/calculators...alculator.aspx
It looks like with no debt and 2k a month income they can afford a 129k home with payments of around 553.00/month that is a heck of a lot cheaper than renting.
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Old 02-28-2018, 08:52 AM
 
Location: Tennessee
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Quote:
Originally Posted by little pink View Post
I completely agree. Purchasing anything is better than renting. OP could possibly buy a condo on that income. Here is a calculator that Op can plug in the numbers.
https://www.bankrate.com/calculators...alculator.aspx
It looks like with no debt and 2k a month income they can afford a 129k home with payments of around 553.00/month that is a heck of a lot cheaper than renting.
That seems overly generous. That's not a lot of money left over for anything else net of tax.
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Old 02-28-2018, 09:59 AM
 
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Originally Posted by Serious Conversation View Post
That seems overly generous. That's not a lot of money left over for anything else net of tax.
But where do you find a rental for $550 a month where it can go up to $700 in a few years? You can also buy a 2/1 and have a friend move in as a roommate and charge them $500 a month and most of your mortgage is paid.
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Old 02-28-2018, 10:04 AM
 
385 posts, read 260,164 times
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Quote:
Originally Posted by Serious Conversation View Post
That seems overly generous. That's not a lot of money left over for anything else net of tax.


I bet OP is paying more than 553 a month for rent , they are somehow existing on this income right now anyways. I was just grabbing numbers , my point being that it is just about always cheaper to purchase than to rent . I tried explaining this to my son. He can purchase a cheap condo in Indy for around 50k with payments of around 300 or he can rent for 900 . I don't know what part of the country OP is in but it is doable.
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Old 02-28-2018, 02:48 PM
 
Location: Tennessee
28,279 posts, read 21,192,463 times
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Quote:
Originally Posted by little pink View Post
I bet OP is paying more than 553 a month for rent , they are somehow existing on this income right now anyways. I was just grabbing numbers , my point being that it is just about always cheaper to purchase than to rent . I tried explaining this to my son. He can purchase a cheap condo in Indy for around 50k with payments of around 300 or he can rent for 900 . I don't know what part of the country OP is in but it is doable.
I'm just surprised at how someone would be approved for nearly four times their income.
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Old 03-02-2018, 08:52 AM
 
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Many lenders will go down to a 580 FICO with 3.5% down, they are going to take the middle score of the person with the lowest FICO to base the loan on.

For Down Payment assistance you will need in most cases a 620 mid score of the lowest FICO borrower.

28K with no debt FHA allows 45% DTI, even 56.99% but the FICO should be higher to get through.
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Old 03-08-2018, 09:19 PM
 
Location: MID ATLANTIC
8,140 posts, read 19,992,551 times
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Quote:
Originally Posted by Serious Conversation View Post
I'm just surprised at how someone would be approved for nearly four times their income.
When someone calls me and rattling off what they want to buy, taking their gross annual income x 4 is the first calculation to see if they are even close to reality. I had someone call me just this week who made 60K per year out looking at 650K homes. They did have 20% down, but i didn't have to even pull out a calculator or pull credit to tell them they really needed to rent, 5 kids and all.
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Old 03-09-2018, 07:03 AM
 
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Quote:
Originally Posted by Serious Conversation View Post
I'm just surprised at how someone would be approved for nearly four times their income.
It's not just about that, it's their debt to income ration. at 4x you can still qualify if your DTI is in check.
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