Posted on: 15th Apr, 2009 11:11 am
I plan on purchasing my first home within the next few months.
I make 42K a year gross (salary). My FICO score was 788 before paying off my car, which I've recently done.
Monthly, I pay 135 for car insurance, and usually rack up to 400 a month for gas/food.
Now my first question: I have access to up to 50K for a down payment. That 50K would come from my father.
Are there any issues of the down payment coming from a different person? If the down payment is transferred to me via a joint checking account, does that bypass the 'gift tax'? Does the origin of the 50K matter?
I'm looking to buy a house in the 200k-250k range. Does this seem reasonable or should I be lowering my expectations on how much I can afford?
I make 42K a year gross (salary). My FICO score was 788 before paying off my car, which I've recently done.
Monthly, I pay 135 for car insurance, and usually rack up to 400 a month for gas/food.
Now my first question: I have access to up to 50K for a down payment. That 50K would come from my father.
Are there any issues of the down payment coming from a different person? If the down payment is transferred to me via a joint checking account, does that bypass the 'gift tax'? Does the origin of the 50K matter?
I'm looking to buy a house in the 200k-250k range. Does this seem reasonable or should I be lowering my expectations on how much I can afford?
kismet, you are in good shape, obviously, to make a purchase. depending on the specific loan program you choose, you may be able to use the $50K as the entire down payment. if you have to come up with your own funds, it is typically 5% of the purchase price, and i hope that's making sense.
i cannot comment on gift tax - don't dare, as i'm no tax expert. that's a question best posed to someone who is a tax expert.
with your income, and assuming there's no other consumer-type debt (credit card, etc.), you'll probably be able to be approved for a monthly payment in the vicinity of $1600 or so - perhaps a little more, perhaps a little less. that may or may not fit your budget, of course. the possibility is that a home in the price range you describe will render a higher monthly payment, though. that, of course, would also depend on the real estate taxes and homeowner's insurance policy cost tied to a particular home.
i tend to look at what you can handle from a conservative standpoint, because liberalism in lending has shown itself to be far too hazardous. not only that, but guidelines are continually changing, and whatever i may say today could be verboten tomorrow.
i'm hoping that sheds a bit of light on your scenario, but welcome additional questions, of course.
i cannot comment on gift tax - don't dare, as i'm no tax expert. that's a question best posed to someone who is a tax expert.
with your income, and assuming there's no other consumer-type debt (credit card, etc.), you'll probably be able to be approved for a monthly payment in the vicinity of $1600 or so - perhaps a little more, perhaps a little less. that may or may not fit your budget, of course. the possibility is that a home in the price range you describe will render a higher monthly payment, though. that, of course, would also depend on the real estate taxes and homeowner's insurance policy cost tied to a particular home.
i tend to look at what you can handle from a conservative standpoint, because liberalism in lending has shown itself to be far too hazardous. not only that, but guidelines are continually changing, and whatever i may say today could be verboten tomorrow.
i'm hoping that sheds a bit of light on your scenario, but welcome additional questions, of course.
well....my italicization of the word "verboten" didn't work, did it?
George,
This is 'Kismet'. I decided to make an account. First, thanks for the quick reply!
I'm hoping to stick with a conventional loan and paying a 20% down payment to avoid a PMI. So if I were to buy a home priced at 225k, the down payment would be 45k, leaving 180k to be borrowed. The remaining 5k that I have available plus any money I can save up to the closing date could be used for closing costs.
I've been looking at some mortgage calculators and 180k at 4.875% for a 30 year fixed mortgage would be about $953 a month. Add in an annual average property tax + home insurance for my area of $1700; that totals $1095 a month.
I don't have any other consumer-type debt, so the PITI + monthly expenses is roughly 35% of my monthly gross.
I'm not sure how you arrived at the $1600 monthly payment however. Could you ellaborate on that?
This is 'Kismet'. I decided to make an account. First, thanks for the quick reply!
I'm hoping to stick with a conventional loan and paying a 20% down payment to avoid a PMI. So if I were to buy a home priced at 225k, the down payment would be 45k, leaving 180k to be borrowed. The remaining 5k that I have available plus any money I can save up to the closing date could be used for closing costs.
I've been looking at some mortgage calculators and 180k at 4.875% for a 30 year fixed mortgage would be about $953 a month. Add in an annual average property tax + home insurance for my area of $1700; that totals $1095 a month.
I don't have any other consumer-type debt, so the PITI + monthly expenses is roughly 35% of my monthly gross.
I'm not sure how you arrived at the $1600 monthly payment however. Could you ellaborate on that?
It looks like George was using a 45% debt to income ratio.
