How much much house can i afford, making $40k
If I make $40k a year how much house can I afford?
I plan to buy a home in the summer. I am in the Pacific Northwest, average home price is $350k. I have no debt. I could not find any lucrative ways on other forums to make a reasonable purchase. All articles point to a 37% DTI ratio, but I heard some lenders can go to 50%. I want to purchase a home, live in it for a year and rent it out.
Assuming I want to do a minimum downpayment (5% conventional or 3.5% FHA) and the interest stays 3%-4% what is the max home value I could get?
I understand that I should be money wise and not purchase something I can’t afford, but I want to know the limits.
Would I be able to afford a $375k home for conventional?
Would I be able to afford a $550k duplex with FHA?