Can I afford a house with these numbers in California?
December 11, 2008 · Print This Article
vicpal25 asked:
I have managed to save 10k on my savigs and have built up my credit to 660 and make 62k a year in Los Angeles, CA. Can I afford a house? Any advice for me to get into my first home? I want to start and building equity. I am very motivated to get into my first home. Any good advice or obstacles I should overcome would help….
I herd someone talking that I can get into a house with 0 down? Is that even possible??
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I have managed to save 10k on my savigs and have built up my credit to 660 and make 62k a year in Los Angeles, CA. Can I afford a house? Any advice for me to get into my first home? I want to start and building equity. I am very motivated to get into my first home. Any good advice or obstacles I should overcome would help….
I herd someone talking that I can get into a house with 0 down? Is that even possible??
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Josh Dunaway has been a certfied Realtor in the suburban Chicagoland area for over 20 years. Aside from starting his own real estate company, he also owns a mortgage company as well.
I dont live out there, but from the shows I see on people looking for houses, the prices are just way out of line. Like 400k and up.
I think you might be a little too short on money to start right now. The housing market is crazy though. Some places have houses that just wont sell, probably because sellers dont want to lower their prices.
I think you need more savings maybe at least 50K
but you may be able to get in a small condo on a 95% or 100% mortgage
Also there may be an advantage to wait until jan-Feb 2008 this will be after the adjustment takes place prices are on the way down and the bottom will be Jan-May of 08 in major markets
expect a 20-25% drop from June 2005- Jun 08
Usually as long as your score is over a 640, you can get 100% financing. In California with an income of 60k a year you probally would not qualify for a full doc. loan (which in that case you would only need a 580 for 100%) There are an array of programs out there that would best fit your scenerio to get you into a home. Any rental history? Go ahead and shoot me an email and I would be happy to answer anymore questions for you
Yes, you would be able to qualify for zero down with a 660 credit score.
In regards to how much you can afford, let’s do some calculating:
Income: $5,166.67 a month
Debt: let’s assume you have no other monthly payments
Taxes: let’s assume $4,500 a yr.
Insurance: lets assumen $1,000 a yr.
Your housing ratio shouldn’t go too much higher than 28%-32%, so that would be a house payment of $1,653.33. Subtract out taxes and insurance of $458.33 a month and leaves a principle and interest payment of $1,195.00. On a 30 yr. fixed at 6.25%, you’d be looking at a purchase price/mortgage amount of $194,082.61, so roughly a purchase price of $195,000.
My husband is a schoool teacher in California, and I am a dance teacher…we purchased a our first home (a victorian cottage) 2 years ago. We had 60k to play with, and ended up buying a home (2 bdrm 1 bath, 1200 sq. ft.) in the Bay Area of Dec. ‘04 for 470k. Our payments are approximately 3k a month, and it is hurting us. We are trying to hang for a few more years, and since we have an “interest only” loan, we are depending on the market to go up. I must admit, renting does seem easy…you sure get a lot more space, and with our 3 children, we often reminesse about when we were renting with 3 times the amount of space at half the cost of our mortgage now. We did manage to erase some of our debt, and we refinanced to by a new truck for my husband (which we probably couldn’t do renting). We have heard that currently it is not a good time to sell, but definitely a good timen to buy. Good Luck!
yes you can totally afford a house you actually don’t need a savings you can buy a house with zero down and you can also have the seller to pay for your closing cost i do it all the time i’m from bakersfield and you can buy a house under 300k like brand new or in LA you can still find maybe 400k and higher but with your fico score of 660 you can definetly qualify for 100% financing. right now the market is not so good so its the best time to buy a property because you can bargain with the seller and people now a days they are so desperate to sell their house they will pay for your closing cost like i said. market is not so good but in a year or two market will pick up again like usual because its a cycle it goes down then market picks again so you if you bargain with them when the market goes up you will have a lot of equity already. my mother in law owns a real estate and mortgage company and i’m one of their realtor so we do eveything in one roof so if you are interested i’m based in bakersfield LA is not that far from me if you need help just e-mail me at. I KNOW ITS HARD TO TRUST SOMEONE NOW A DAYS SPECIALLY WHAT PEOPLE HEARS ABOUT REALTOR RIPPING THEM OFF WELL TRY OUR COMPANY AND I WILL MAKE SURE YOU WILL LOVE OUR SERVICE.