Posted on: 04th Sep, 2007 06:08 pm
I'm hoping someone let me know if I can borrow up to 260,000 with an FHA loan? They allow up to 369,000 for high cost area which I live in (NY/NJ). 230 to 260,000 is the price if you want anything decent. I will have no debt when I apply next summer except for my car insurance which is 1,200 a year and my 2 small credit cards with a 30 minimum payment required on each.
My gross monthly salary varies from 4,200 to 4,500 and have been working 2 years for one of the top 4 accounting firms (22 years in the industry)
My score is low and I can't afford 10 or 20% of the downpayment. The best I could do is 7%
PS. I'm married but I cannot put his name on the mortgage because he has personal debt that he has to take care of. I would love to count his salary in but no can do.
Anyone with experience in this area and can give me some feedback I would be really grateful.
My gross monthly salary varies from 4,200 to 4,500 and have been working 2 years for one of the top 4 accounting firms (22 years in the industry)
My score is low and I can't afford 10 or 20% of the downpayment. The best I could do is 7%
PS. I'm married but I cannot put his name on the mortgage because he has personal debt that he has to take care of. I would love to count his salary in but no can do.
Anyone with experience in this area and can give me some feedback I would be really grateful.
"My score is low and I can't afford 10 or 20% of the downpayment. The best I could do is 7% "
For fha loan, you only need to make 3% down payment, as you are willing to make down payment up to 7%, so need not worry about it. And even with low score you can get a fha loan, in which your overall credit profile for the last couple of years will be looked at.
But your income is a bit less than what would be required for a 260k house. I tried this mortgage calculator to check how much you would be able to borrow ( http://www.mortgagefit.com/calculators/howmuch-borrow.html ) & it seems you may face difficulty in getting a mortgage for this amount.
Miller
For fha loan, you only need to make 3% down payment, as you are willing to make down payment up to 7%, so need not worry about it. And even with low score you can get a fha loan, in which your overall credit profile for the last couple of years will be looked at.
But your income is a bit less than what would be required for a 260k house. I tried this mortgage calculator to check how much you would be able to borrow ( http://www.mortgagefit.com/calculators/howmuch-borrow.html ) & it seems you may face difficulty in getting a mortgage for this amount.
Miller
Hi Ljeen,
You had asked a similar question yesterday also. Please go through this page to know about the replies other community members gave to your question: http://www.mortgagefit.com/know-how/fhaloan-approval.html
Thanks
You had asked a similar question yesterday also. Please go through this page to know about the replies other community members gave to your question: http://www.mortgagefit.com/know-how/fhaloan-approval.html
Thanks
Thank you for your reply. The problem lies with my husband who called ClearPoint Debt solutions and they told him that they don't handle accounts that are in collection and closed. Only ones that are still open. Our combined salaries come to 95,000. This is a real shame. Looks like it's Manufactured house time.
Hi Ljeen,
With the income you have, you can get a loan from MyCommunity mortgage by Fannie Mae. This type of loan which is available upto 100% financing, is primarily intended for low and moderate income borrower. To know more about the features of Mycommunity mortgage, you may refer to http://www.mortgagefit.com/inprocess/mycommunity-program.html
Moreover, you can shop around with some lenders and check out what loan programs they can offer you that will suit your needs.
With the income you have, you can get a loan from MyCommunity mortgage by Fannie Mae. This type of loan which is available upto 100% financing, is primarily intended for low and moderate income borrower. To know more about the features of Mycommunity mortgage, you may refer to http://www.mortgagefit.com/inprocess/mycommunity-program.html
Moreover, you can shop around with some lenders and check out what loan programs they can offer you that will suit your needs.
Hi Ljeen,
It seems as if you are on the right track. An FHA loan can be your option here but I think you are concerned about the fact that you cannot include your spouse's income. And, I feel, before you worry, why not calculate your debt to income ratio inlcuding your as well as your spouse's debts and income. If that crosses 41% of the gross monthly income earned by both of you, then FHA loan wouldn't be a possibility.
Anyway, you can seek for loan offers from our community lenders also. The lenders in our community offer various types of loans to people having different income levels. So, if you are interested, you can send us your request for mortage quotes with the minimum details. We shall pass on your request to our community lenders and they shall contact you if they are able to provide you with a loan that suits your needs.
Good luck :)
It seems as if you are on the right track. An FHA loan can be your option here but I think you are concerned about the fact that you cannot include your spouse's income. And, I feel, before you worry, why not calculate your debt to income ratio inlcuding your as well as your spouse's debts and income. If that crosses 41% of the gross monthly income earned by both of you, then FHA loan wouldn't be a possibility.
Anyway, you can seek for loan offers from our community lenders also. The lenders in our community offer various types of loans to people having different income levels. So, if you are interested, you can send us your request for mortage quotes with the minimum details. We shall pass on your request to our community lenders and they shall contact you if they are able to provide you with a loan that suits your needs.
Good luck :)
Hi Ljeen,
Welcome to our forums.
Since home prices in your area does not go beyond what you require, therefore what you can do is check your debt to income ratio if it's an FHA loan that you wish to qualify for. You may use the Debt-to-income Ratio Calculator to find out if you are eligible for the FHA loan (it requires your dti to be 41% of your gross monthly income).
Your credit score is low, but then that won't affect of it's an FHA loan. The dti and your income would matter. Also, you need not pay higher down payment, not even 7%.
If you have started shopping for an FHA loan, then that's fine or else I would have advised you to consider loans from ACORN housing and the like where you can get mortgages strictly at low income also.
Take Care
Welcome to our forums.
Since home prices in your area does not go beyond what you require, therefore what you can do is check your debt to income ratio if it's an FHA loan that you wish to qualify for. You may use the Debt-to-income Ratio Calculator to find out if you are eligible for the FHA loan (it requires your dti to be 41% of your gross monthly income).
Your credit score is low, but then that won't affect of it's an FHA loan. The dti and your income would matter. Also, you need not pay higher down payment, not even 7%.
If you have started shopping for an FHA loan, then that's fine or else I would have advised you to consider loans from ACORN housing and the like where you can get mortgages strictly at low income also.
Take Care
You will need to confirm the lending limits before entertaining a FHA loan---loan limits are set by county and you can't rely on every county in your state meeting the highest limit rule.
Although you have 7% to contribute to a downpayment, you could reduce this to 2.25 (and possible 0 if you qualify for a DPA grant).
As to your concerns with collections, FHA wins again---not all collection issues must be paid in full as a condition to securing financing.
Regards,
Scott Miller
Although you have 7% to contribute to a downpayment, you could reduce this to 2.25 (and possible 0 if you qualify for a DPA grant).
As to your concerns with collections, FHA wins again---not all collection issues must be paid in full as a condition to securing financing.
Regards,
Scott Miller
Scott,
If one is qualified for a DPA grant, does he have to pay it back?
If one is qualified for a DPA grant, does he have to pay it back?
Hi Regal,
There are certain DPA grants for which you may not have to pay it back. If you have received the amount as gift assistance, then you need not repay it back Again if you have borrowed the amount from IRA, then also you do not have to pay it back. But you may have to pay taxes on the money borrowed and that depends on the type of IRA.
But if you borrow from 401(k) Plan account, it will require you to pay back the money that you have borrowed along with the required interest.
There are certain DPA grants for which you may not have to pay it back. If you have received the amount as gift assistance, then you need not repay it back Again if you have borrowed the amount from IRA, then also you do not have to pay it back. But you may have to pay taxes on the money borrowed and that depends on the type of IRA.
But if you borrow from 401(k) Plan account, it will require you to pay back the money that you have borrowed along with the required interest.
Hi Ljeen,
Have you have found someone to do your loan yet? If not, you should apply @ "www.mymortgagebankusa.com" as we are FHA experts and would love to help you out on your transaction. It doesn't matter if you have been turned down elsewhere as lenders programs can vary greatly. DPA is not required to be paid back and actually comes from the seller of the home you are purchasing and is channeled through a DPA program. The DPA wires the funds to the closing and they are reimbursed from the sellers proceeds.
Thanks,
Summer
"www.mymortgagebankusa.com"
[Link deactivated as per forum rules. Thanks.]
Have you have found someone to do your loan yet? If not, you should apply @ "www.mymortgagebankusa.com" as we are FHA experts and would love to help you out on your transaction. It doesn't matter if you have been turned down elsewhere as lenders programs can vary greatly. DPA is not required to be paid back and actually comes from the seller of the home you are purchasing and is channeled through a DPA program. The DPA wires the funds to the closing and they are reimbursed from the sellers proceeds.
Thanks,
Summer
"www.mymortgagebankusa.com"
[Link deactivated as per forum rules. Thanks.]