What amount I can get with this credit report

Question

Hello,

I’m still concerned with amount of finance that is possible for me to take out as a first loan. So based on your experiences and knowledge what is the max amount I can take? Im aiming for 650k loan. Could that be possible?

750+ credit score

2% DTI ration

20k possible to put down

60k annual income

thank you in advance

Chris Mason · Answer

FICO scores do not drive mortgage approvals, incomes do. DTI specifically.

In this case, unfortunately, the answer would be "not even close" at that price point.

People on these forums act like they amassed this great deal of wealth through real estate, and that may very well have been their "steps 1 through 10" where they've been focused for the last 6 or 12 years, but for the most part their "step 0," back many moons ago, was solid day-job income. I know, because I see all their tax paperwork and paystubs, I'm there from when they first purchased that first house to live in, to when they are at step 5 with yet another fourplex, to when they're done with me because I only do residential 1-4 unit real estate and they're doing 100 unit apartment syndications. The forums and podcasts and articles start at "step 1" or "step 2" because "step 0" isn't real estate related, but that doesn't mean there wasn't a "step 0."

I don't mean this in any negative sense, this is intended as productive advice you can use, but I'd start with "step 0" if that's the price point you are targeting. Once you are established capital just gets thrown at you, but when you are first starting off a lot of things end up centered around your personal income and capital.

Jacob Sampson · Answer

Is this for a SFH you will live in?  I think the short answer is, no.  60k income is not sufficient for that sized home.  Even if the bank will loan you the money don't take it.  You can't afford it.

Jacob Sampson · Answer

I probably will.  You need more cash.  The moment some 10k problem pops up you are sunk.  What if that problem pops up in the first month?

Stephanie P. · Answer

@junior shay

Your credit score works, and you MAY be able to put just 20% down, but if you put 25% down, approval is a sure thing.

You need a no income verification loan.  Rates are a bit more, but if the DSCR on the property is solid, you'll be fine.

Stephanie

Tom S. · Answer

@Junior Shay  10 units is commercial financing and for any commercial financing I've obtained, it's been 25% down, plus 6 months reserves.  Luckily they do take into account the rental income coming in, but you'd have to call around.  Smaller local banks and asking for the commercial lending department would be your best bet- IMO.

Good luck!

Junior Shay · Answer

Even with 20% down it will be tough?

Bill O'Donnell · Answer

@Junior Shay

Time to examine/explore alternative financing. Sellers financing in particular

Jacob Sampson · Answer

You are going to need to put 20% down then.  I think you will have a tough time making this happen.

Junior Shay · Answer

No that would be 10 unit multi family home

Junior Shay · Answer

Would increasing down payment to 20% allow me to do that?

What amount I can get with this credit report

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