All Forum Posts by: Jenna Goldstein

@Jenna GoldsteinNo, you can't get a $500,000 house with $300/mo income, you didn't comprehend the answers very well. 50% of $300/mo is $150.  The loan payment, not including property tax and insurance, on $500k is about $2500/mo.......kinda tough to afford on $300/mo income.

no one is forcing you to work, but you can't force them to lend you any money either, that you couldn't possibly pay back.

But, to answer your original question directly: with $300/mo income you can not get any mtg whatsoever.  For higher incomes, use the math stated twice above.  And FYI the loan payment(Principle and Interest), excluding property tax and insurance, is about $500/mo per $100,000 borrowed.  So, on  $200k loan the P&I payment is about $1,000/mo., plus taxes and insurance.  So, if taxes and insurance  are another $300/mo., the total mtg payment would be $800/mo which means you would need about $1,600-2000/mo income if you had no additional debt payments (total monthly payments can be no more than 40-50% of income)..

@Jenna Goldstein  Income that is stable and predictable and likely to continue is typically counted as qualifying income for a mortgage.  What does this mean?  Lenders want to see a minimum 2 year employment history, preferably in the same job or line of work.  If you are paid a salary as an employee with no overtime, your income calculations will be more straightforward.  If your income is made up of bonuses, overtime, or commission income they will need to average that income over a 2 year period.  If you are self employed or own rental property your tax returns will need to be reviewed with all schedules to determine qualifying income.

You will be able to use a certain percentage of pre-tax income, which varies depending on which type of loan is best for you. Conventional loans will allow up to 50% debt to income ratio, FHA and VA can be a bit higher. Down payment, credit history, occupancy and property type will play a role in which type of loan you choose.

The other half of the debt to income ratio that will affect how much you can qualify for is your expenses, or more specifically, your monthly minimum debt payments including credit card minimums, car payments, student loan minimums, and any other installment loans that you are obligated to pay.  How much you spend on things like car insurance or your cell phone is not counted.

If you have specific questions on your own income and expenses that you'd like to go over, feel free to PM me. 

Typically, your mtg pmt including property and taxes, can’t be more than 35-45% of your monthly income, before income taxes. Add any other monthly debt pmts and your total monthly payments can’t be more than 45-50% of your monthly income.