looks like my deal on a house is falling through

[EZ_E]

I file as head of household. I'll just be upfront. I make right at 100k per year and the house is only $147,000. I do have about $57,000 in student loans and $12,000 left to pay on my car note. I have no credit card or other debts.

Ok, so $100K/12 months is $8333.33/month

41% (and yes, I've seen approvals up to 45%) of that is $3416.67

$147K @ 5% on a 30 year loan is $751.55, figure another
$200/month for escrow=$951.55, then add in the 1% origonation for FHA and the monthly MI (Unless you go 15 years under 90% LTV) plus title fees and legal fees, etc. Figure the total loan is going to be around $155K



That leaves a little over $1900 cushion every month for student loans and car payments.

That's on an FHA loan, FHA can approve up to 97% if you have liquid assets that helps (IRA, 401K, savings)

Who's telling you 5%?

 

[heatherrae]

Ok, so $100K/12 months is $8333.33/month

41% (and yes, I've seen approvals up to 45%) of that is $3416.67

$147K @ 5% on a 30 year loan is $751.55, figure another
$200/month for escrow=$951.55

That leaves a little over $2400 cushion every month for student loans and car payments.

That's on an FHA loan, FHA can approve up to 97% if you have liquid assets that helps (IRA, 401K, savings)

Who's telling you 5%?

No one talked to me about FHA except on here. How do I apply for an FHA loan? The bank wants me to pay the $8000 in liens off and will finance the rest.

 

[jnevin]

No one talked to me about FHA except on here. How do I apply for an FHA loan? The bank wants me to pay the $8000 in liens off and will finance the rest.

Those aren't your liens to pay. Fuhk them.

 

[cindylou]

I got ya!

I wasn't sure because you never mentioned what the house was appraised for.

Can I make another suggestion?


Always pay extra on your mortgage. Round it up. Doesn't have to be a lot, but do what you can afford.

My mortgage is $1505.xx, so I always round it up to atleast $2000. So even at an extra $500, it ends up being 4 extra principle only payments per year. Adds up quick.

I never pay less than an extra $500 onto my mortgage. I'm 26 yo, and i'm gonna pay this friggin house off as soon as possible.

I kinda took this from the theory of working backwards from your ammortization schedule. Only my way is like a souped up version of it. hehe

i did that the first year but have not done it since then. You pay an extra 500 bucks a month on your mortgage? tht seems like a lot extra to me.

 

[jnevin]

And any decent loan officer you talk to should know an FHA loan is the best option for you. You could be in the house for maybe a couple thousand if they structure the file properly.

 

[EZ_E]

No one talked to me about FHA except on here. How do I apply for an FHA loan? The bank wants me to pay the $8000 in liens off and will finance the rest.

The lender has to be FHA licensed in the state you live in.

$8K in leins? SCREW THAT. There are other houses out there.

 

[heatherrae]

The lender has to be FHA licensed in the state you live in.

$8K in leins? SCREW THAT. There are other houses out there.

That is what I said!

 

[heatherrae]

Those aren't your liens to pay. Fuhk them.

Yeah, I know. They were not increasing the asking price. In other words they wanted me to do an $8000 to pay off the liens but then $139,000 would be the balance instead of $147,000. they don't want to finance the lien amount into the loan for some weird reason. I think they are going to shoot themselves in the foot if they mess around with me so much that I walk away. If they have to foreclose on the house, it will cost them that much to pay for the attorney fees, the sale, to remarket the property and to carry the taxes. Plus, it will be sitting with no payments for a year while they foreclose.

I'm trying to explain the logic to the banker and the owner so that one or the other of them pony up and quit bickering about $8000. lol.

 

[bigmann245]

im sorry to hear that. we came real close to buying with no money down but something told me to wait. then the housing crisis went down and i was glad i didnt do it. they wanted us to do a interest only house payment and get a 500,000 house. payment was only $1100 a month interest only. sounded great but no thanks. the other options werent any better. like i said someting just didnt feel right and now i see they were just trying to get us in any crappy loan they could.

 

[miplank]

i did that the first year but have not done it since then. You pay an extra 500 bucks a month on your mortgage? tht seems like a lot extra to me.

Yup...I pay a minimum of $500 extra.

I guess it depends on how you look at it. I make really good money, and so does my wife. So it's not like it puts any burdon on my finances to do so.

Have you ever looked at your ammortization schedule? By paying extra on my mortgage like I am i'm basically controlling how much interest i'm going to pay over the life of the loan because every dollar extra I pay goes straight towards the principle and no interest.