What are some mortgage loans that I could potentially qualify for with a small income? So i have an awesome lender helping me out but I was told I could only potentially get approved for mid $200,000! My income of $3000 is stopping me from getting a loan for more. I have a credit score of 718. And because LA market is so high is there any loans out there that could help me get a potential mortgage that’s in the $400,000?
I will have roommates but only I and possible 1 friend will be on the loan together. If that could help to qualify for more. Thank you!
@Theresa Harris yes it’s 36k a year and I have been looking into cheaper areas. But for loan approval for more is it not possible? Especially if I have a decent down deposit I saved up?
Most banks will cap the amount you can borrow based on your debt to income ratio. They don't care how much you have saved as long as you have enough for the down payment.
Do you have any other debt (car loan, student loans, credit card)? This will impact how much they will loan you.
The more money you have saved for the house, the more house you can buy, but not the larger mortgage. Assuming you are not living in the house, the $200K mortgage and $40K down payment buys you a $240K house. Now if you had $100K saved up, you could buy a $300K house ($200K mortgage and $100K of your money. You also need to keep some money for closing costs and unexpected expenses (what if you can't rent it right away, what if something breaks). The more you save, the more you can buy because it is added on top of the $200K mortgage and your down payment.