Posted on: 12th Jan, 2013 09:12 pm
Hi everyone, I was hoping some of you guys could help me out here with a simple newbie question. Basically I am 24 and am in the early stages of house hunting. I have been looking at houses in my town and i want to avoid pmi and am planning on putting about 50 thousand dollars down for my down payment. I don't have any debt, student loans, and I paid off my car so I don't have any car payments. My credit is excellent and have two open credit cards. But the bad news is I am single and only make about 22 thousand dollars a year. Do you think I could take on a house for a price of around 175,000 dollars? If so what would be the maximum price I would be realisticly looking at for getting approved.
Welcome Vikings,
Your credit situation is excellent. Your income may create a probem for you but you can look out for a home which is comparitively cheaper in price. You should contact the local real estate brokers and they will help you in finding properties which will suit your income and credit situation. You can even take help of the how much home can I afford calculator and get to know your mortgage affordability.
Your credit situation is excellent. Your income may create a probem for you but you can look out for a home which is comparitively cheaper in price. You should contact the local real estate brokers and they will help you in finding properties which will suit your income and credit situation. You can even take help of the how much home can I afford calculator and get to know your mortgage affordability.
Hi Vikings!
Welcome to forums!
You can get a mortgage without a PMI, then you will have to pay 20% down payment.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
You can get a mortgage without a PMI, then you will have to pay 20% down payment.
Feel free to ask if you've further queries.
Sussane
Vikings,
as you mentioned you are planning to buy a house,which costs around 175,000 dollars. Well,if we take a look at your annual income, I think it is not a good idea to hunt that big. Go for something that really fits your budget. May be around 75,000 to 100,000 is just fine if you ask me.
I hope it helped.
Thanks for posting.
as you mentioned you are planning to buy a house,which costs around 175,000 dollars. Well,if we take a look at your annual income, I think it is not a good idea to hunt that big. Go for something that really fits your budget. May be around 75,000 to 100,000 is just fine if you ask me.
I hope it helped.
Thanks for posting.
If you look at my earlier post regarding loan option from USAbank, they have exclusive loan program with no PMI even with 5 percent down. The catch is they will give you 4.125% rate compare to 3.625 with the same 30 year fixed loan with PMI. You pay less monthly payment but they'll get your money anyway from interest.
In your situation $175000 -$50000 = $125,000 loan
That means you are somewhere around $850-1000 monthly payment for the house/condo etc. it varies by location also regarding taxes. You did not mention how long you,have been working on your current job and also do you have more savings left when you put down the $50,000 for the house?
In your situation $175000 -$50000 = $125,000 loan
That means you are somewhere around $850-1000 monthly payment for the house/condo etc. it varies by location also regarding taxes. You did not mention how long you,have been working on your current job and also do you have more savings left when you put down the $50,000 for the house?
Sorry , I posted as a guest above.
Here is the USbank loan option I mentioned about.
http://www.mortgagefit.com/predeal/about55947.html
I also agree to get a little cheaper house. Work with the lender on that number.
Here is the USbank loan option I mentioned about.
http://www.mortgagefit.com/predeal/about55947.html
I also agree to get a little cheaper house. Work with the lender on that number.
You will have to make the necessary 20% down payment in order to get a mortgage without a PMI. Although you have an excellent credit score, your income may be a probem for you while taking out a loan. It's advisable that you buy a home within your budget and take out a loan that you will be able to repay on time.