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Old 07-06-2010, 11:28 AM
 
855 posts, read 1,176,757 times
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Have you looked in Manassas? That area would be a 45 minute commute to Herndon, if that. Plus with the market the way it is, there are many deals to be had. On a salary of mid-40s, you should be able to qualify and find a relatively nice home in the 200-235k range, I would imagine (depending on your debts). How do I know? My cousin makes the same amount and was looking in that same price range. She just put a contract in on a cute rambler in Manassas. It needs some minor work like paint and landscaping but it it is a great deal at 212k. As another poster said, look also in the Haymarket area too.

It just takes a little patience, but there are quite a few non-short sales if you look on the real estate search sites and find a good real estate agent. Good Luck!!!
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Old 07-06-2010, 12:03 PM
 
Location: Everywhere and Nowhere
14,129 posts, read 31,352,465 times
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Quote:
Originally Posted by chariega View Post
On a salary of mid-40s, you should be able to qualify and find a relatively nice home in the 200-235k range,
Five times annual income? Isn't that the kind of "2005" thinking that got us into the current mess?
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Old 07-06-2010, 12:46 PM
 
855 posts, read 1,176,757 times
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Actually for the area, a person with minimal debt will qualify for a $200-235k mortgage on a $45-50k income, usually if they are going with an FHA loan or a VHDA FHA Plus loan (in VA). Best advice would be to talk with a lender that specializes in those programs to find out what you really qualify for given your income and debts and the home you want to buy (to consider taxes, HOA, if any, etc).
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Old 07-06-2010, 01:02 PM
 
Location: Everywhere and Nowhere
14,129 posts, read 31,352,465 times
Reputation: 6922
Quote:
Originally Posted by chariega View Post
Actually for the area, a person with minimal debt will qualify for a $200-235k mortgage on a $45-50k income, usually if they are going with an FHA loan or a VHDA FHA Plus loan (in VA). Best advice would be to talk with a lender that specializes in those programs to find out what you really qualify for given your income and debts and the home you want to buy (to consider taxes, HOA, if any, etc).
How can that be? The guideline is a PITI payment of 28% of monthly gross income which for someone making $48,000 is $1,120. Someone making that is going to clear about $3,000 which leaves just $1,880 for food, utilities, clothing, gas, car payment, etc.
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Old 07-06-2010, 01:11 PM
 
Location: Northern Virginia
1,418 posts, read 3,465,708 times
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I always heard the best way to estimate is to triple your income...so for a salary in the $40s,that would be around 120-140K...nowhere heard the mid $200s. I bought a house at $200K years ago on annual income of about $90K...and it was fine. I can't imagine an income of $40k supporting a house over $150K at the high end. But that's just me...
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Old 07-06-2010, 01:27 PM
 
855 posts, read 1,176,757 times
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If you read my post, I am referring to FHA or VHDA Plus loans, which allow more flexible debt-to-income ratios. Also, what you can afford is not based on your take home or net income, your DTI takes into account your gross monthly income, which on a salary of $48000 would be 4,000 a month. Talk to a lender, they can explain it better than I can. What I do know is that there are many people who obtain loans and pay their mortgages comfortably with 36/45 ratios or higher (which I do not recommend)--there are many factors that go into loan approvals soooo... Talk to a lender!!

As for the OP's question, definitely check with a real estate agent and a mortgage broker to find out what you can afford close to Herndon and in your price range--definitely check Haymarket, Manassas, etc. for foreclosures and good deals in the area.
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