How much can I borrow?

Guest 0.10 Dollars($)

I was hoping to get a rough estimate of the maximum loan amount I would qualify for. I understand all about standard DTI, but I was looking for a best-case-scenario max value.

Here's my background:

State: NJ
Monthly gross income: $8,750
Monthly debt: $230 installment loan
Credit score: 760
Cash: Enough for closing costs and few months reserve (i.e., zero down payment).
Desired Mortgage: 80/20
Minimum stay: 5-7 years

Guest 0.10 Dollars($)

Hi,

I think you should provide the property value you are looking for, then it will be more suitable to provide you with an estimate of the loan amount you would be able to qualify for.

Thanks
Leslie

Guest 0.10 Dollars($)

approx: $425,000 -- $8,400 annual taxes.

helping_user · Posted: Thu Oct 05, 2006 8:30 pm Post subject: Re: How much you can borrow?

Hi Anxious,

Leslie is absolutely right. It required property value to calculate the borrow amount. By taking an approximate property taxes amount, i think you can borrow an approximate of $115,000.

But the actual figure you can get from the lender to which you are willing to take the loan.

Thanks

Guest 0.10 Dollars($)

Dear helping_user:

I really appreciate your response, but honestly, I can't understand how you arrived at $115,000. I think I can probably get approved for a car loan for more than that.

Guest 0.10 Dollars($)

Hi,

Generally one can expect to get a mortgage for an amount around 2.5 to 3 times of their yearly gross income.

Thanks
H.Clay

mcole · Posted: Wed Oct 11, 2006 5:19 am Post subject:

Greetings,

Obviously, a lot more information would be required. But based on what you did provide, you could probably do a $425,000 loan with $8,400 in taxes. It would be tight, but still doable.

Just my 2¢

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