First time home buyer...don't know anything roughly speaking FHA loans or mortgage amount for my income?
I live in Colorado, just starting a investigational job where I will engender a minimum of 68,500 (medical field so I will be able to increase my income to around 75,000 with extra hours). I'd REALLY like to buy a house, but next to being a new graduate, I roughly have very little for a down sum. I don't know how much of a housing payment I can afford per month while still saving money, etc. No student loans necessitate to be paid off, the administration is doing that for me, and I have minor other monthly payments, no children, and I am single...
My question is, are in attendance any downsides to an FHA loan?? Can someone give me a straight answer about how much of a mortgage I can afford, instead of these generic online calculators?? DON'T REPLY WITH GENERIC ADVICE THAT I HAVE ALREADY FOUND ONLINE. I would similar to to hear someone's personal experience. Being a first time buyer, I don't want to live beyond my means and become another casualty of the housing market...Thanks!
Answers:
So you deduce that you're ready to buy your own home? Hopefully you've done a little research online to be paid your first home buying experience a good one. First of all you should contact a mortgage broker that will preapprove you for your exotic mortgage. This is now more important than ever<!--It's also earth-shattering that once you receive a preapproval you get busy right away looking for your new home. The reasoning for this is that next to the mortgage meltdown lenders are changing their lending programs as at a rate of knots as Paris Hilton changes her boyfriends. Scary, huh?
http://mortgages-finance.awardspace.com/First-Time-Home-Buyers-Loans.htm
At this point you will let the mortgage broker in a minute how much you would like to get preapproved for. The broker will afterwards take a full mortgage-->loan application. The mortgage broker will also run your credit. With all this information surrounded by hand the mortgage broker will see if you have adequate income for the price of the home that you would like to purchase.
Megan,
I know you are tired of being directed to places that volunteer few answers, but I believe this link will be of value to you. It's not a calculator, it's a comprehensive guide to what you call for to consider and understand about first time buying. It is probably worth good a copy for future reference.
http://wefixrates.com/Home_Loans_101.htm
Best of luck to you.
I own an FHA loan which I got in 2005. I live surrounded by the bay area, California (homes are expensive here - not sure how Colorado compares).
The upsides be:
- I bought with no money down (I had similar income to yours and 720 credit score)
- They even covered closing costs, so my loans (total of 3) come to 103% of the purchase price
- The rate I got at the time was absurd (4.75% 30 year fixed, I think now they are at somewhere around 5.75% but I could be wrong)
- It is a fixed rate for 30 years, no worrying
- I was/still am not required to kind any payments on the 2nd and third loan.
The downsides were:
- You have to reward PMI (private mortgage insurance) no matter what for the first 2 years, after which you might be able to capture it removed if your home's value rises and fits certain criteria. This slice is really irritating because (in my case) it is about $220/mo that I am basically throwing away for the priviledge of have this loan.
- You must live in the home for the life of the loan (you are irrelevant to rent it out for any reason)
The rate difference between then and now is moderately substantial. If I was in your shoes, buying presently with no down payment I meditate I would:
- buy a home with CAL FHA (their rates aren't THAT much better than rates you can get elsewhere, but it's nearly impossible to find 100% loans elsewhere these days)
- they enjoy no prepayment penalty (I think - please check on this as it's be a while for me) so you can refinance if you need to
- you can buy with no money down which is nearly impossible to do otherwise at the moment
- I would ONLY do this if I was buying a foreclosure or a short sale surrounded by a GOOD area in your state (a place more probable to weather the housing crisis right now) where I would be walking in beside equity. Make SURE your agent gives you comparable RECENT sales of same size/same lot properties, you want to hold equity on day one, in travel case values come down.
- I would ONLY do this if I wanted a *home* as opposed to a get hold of rich quick scheme. You could be within this home for the long haul before prices stabilize and we start seeing growth again. If you tramp in with equity there's less/little risk that your convenience goes down and you get stuck owing more than the home is worth, BUT maintain in mind that it will be difficult to sell your home because everyone is have a harder time getting loans, and that means less empire can buy. So you need to think long possession.
I do think it is a good notion to buy right now with no money down because prices are low, and if you can win a good deal and a good loan that you are confident you can aver for years (think 5 years) then you will come out ahead in the long run.
Note that if you did own a down payment, I would have suggested to explore other loans, because the PMI is money down the drain, and if this is your first home and you're single beside no kids then it's unlikely you'll be living in it for 30 years anyway. But (not knowing anything give or take a few the Colorado market) my opinion is that going with CAL HFA contained by your situation is a great choice.
(And if I can be annoying for a minute and suggest about something you didn't ask -- don't fall into the bribe of leasing a car or buying a brand new vehicle with payments ... really bad passageway to spend your money with no appreciation whatsoever! You'll do much better to buy a used car and seize yourself into a home. I see so many people buying $30K-$40K cars next to payments, it's killing me!)
If you're a first time buyer then you have to do your homework formerly you jump into the biggest investment of your life. Many big cities submission free courses and sometimes financial assistance if your income is within ranges. There are also non-profit organisations that will educate you and help out you get financing. FHA is just one program. Look within the phone book for "Acorn" or "Affordable Housing Dept" or "Community Developement" in your city. It's worth a day isn't it?
Hi
There is a angelic site at http://www.homemortgageloan-refinance.com and the professional there might be able to aid you out
Related Questions:
Home loan or mortgage give somebody the third degree is it worth refinancing?
I purchased a townhouse back in 2005 and i hold two loans on it one for 490,000 fixed for 10 years at 5.75% but its a 30 year loan., and a smaller loan for 54,000 dollars at a variable rate. Obviously...
My question is, are in attendance any downsides to an FHA loan?? Can someone give me a straight answer about how much of a mortgage I can afford, instead of these generic online calculators?? DON'T REPLY WITH GENERIC ADVICE THAT I HAVE ALREADY FOUND ONLINE. I would similar to to hear someone's personal experience. Being a first time buyer, I don't want to live beyond my means and become another casualty of the housing market...Thanks!
Answers:
So you deduce that you're ready to buy your own home? Hopefully you've done a little research online to be paid your first home buying experience a good one. First of all you should contact a mortgage broker that will preapprove you for your exotic mortgage. This is now more important than ever<!--It's also earth-shattering that once you receive a preapproval you get busy right away looking for your new home. The reasoning for this is that next to the mortgage meltdown lenders are changing their lending programs as at a rate of knots as Paris Hilton changes her boyfriends. Scary, huh?
http://mortgages-finance.awardspace.com/First-Time-Home-Buyers-Loans.htm
At this point you will let the mortgage broker in a minute how much you would like to get preapproved for. The broker will afterwards take a full mortgage-->loan application. The mortgage broker will also run your credit. With all this information surrounded by hand the mortgage broker will see if you have adequate income for the price of the home that you would like to purchase.
Megan,
I know you are tired of being directed to places that volunteer few answers, but I believe this link will be of value to you. It's not a calculator, it's a comprehensive guide to what you call for to consider and understand about first time buying. It is probably worth good a copy for future reference.
http://wefixrates.com/Home_Loans_101.htm
Best of luck to you.
I own an FHA loan which I got in 2005. I live surrounded by the bay area, California (homes are expensive here - not sure how Colorado compares).
The upsides be:
- I bought with no money down (I had similar income to yours and 720 credit score)
- They even covered closing costs, so my loans (total of 3) come to 103% of the purchase price
- The rate I got at the time was absurd (4.75% 30 year fixed, I think now they are at somewhere around 5.75% but I could be wrong)
- It is a fixed rate for 30 years, no worrying
- I was/still am not required to kind any payments on the 2nd and third loan.
The downsides were:
- You have to reward PMI (private mortgage insurance) no matter what for the first 2 years, after which you might be able to capture it removed if your home's value rises and fits certain criteria. This slice is really irritating because (in my case) it is about $220/mo that I am basically throwing away for the priviledge of have this loan.
- You must live in the home for the life of the loan (you are irrelevant to rent it out for any reason)
The rate difference between then and now is moderately substantial. If I was in your shoes, buying presently with no down payment I meditate I would:
- buy a home with CAL FHA (their rates aren't THAT much better than rates you can get elsewhere, but it's nearly impossible to find 100% loans elsewhere these days)
- they enjoy no prepayment penalty (I think - please check on this as it's be a while for me) so you can refinance if you need to
- you can buy with no money down which is nearly impossible to do otherwise at the moment
- I would ONLY do this if I was buying a foreclosure or a short sale surrounded by a GOOD area in your state (a place more probable to weather the housing crisis right now) where I would be walking in beside equity. Make SURE your agent gives you comparable RECENT sales of same size/same lot properties, you want to hold equity on day one, in travel case values come down.
- I would ONLY do this if I wanted a *home* as opposed to a get hold of rich quick scheme. You could be within this home for the long haul before prices stabilize and we start seeing growth again. If you tramp in with equity there's less/little risk that your convenience goes down and you get stuck owing more than the home is worth, BUT maintain in mind that it will be difficult to sell your home because everyone is have a harder time getting loans, and that means less empire can buy. So you need to think long possession.
I do think it is a good notion to buy right now with no money down because prices are low, and if you can win a good deal and a good loan that you are confident you can aver for years (think 5 years) then you will come out ahead in the long run.
Note that if you did own a down payment, I would have suggested to explore other loans, because the PMI is money down the drain, and if this is your first home and you're single beside no kids then it's unlikely you'll be living in it for 30 years anyway. But (not knowing anything give or take a few the Colorado market) my opinion is that going with CAL HFA contained by your situation is a great choice.
(And if I can be annoying for a minute and suggest about something you didn't ask -- don't fall into the bribe of leasing a car or buying a brand new vehicle with payments ... really bad passageway to spend your money with no appreciation whatsoever! You'll do much better to buy a used car and seize yourself into a home. I see so many people buying $30K-$40K cars next to payments, it's killing me!)
If you're a first time buyer then you have to do your homework formerly you jump into the biggest investment of your life. Many big cities submission free courses and sometimes financial assistance if your income is within ranges. There are also non-profit organisations that will educate you and help out you get financing. FHA is just one program. Look within the phone book for "Acorn" or "Affordable Housing Dept" or "Community Developement" in your city. It's worth a day isn't it?
Hi
There is a angelic site at http://www.homemortgageloan-refinance.com and the professional there might be able to aid you out
Related Questions:
Home loan or mortgage give somebody the third degree is it worth refinancing?
I purchased a townhouse back in 2005 and i hold two loans on it one for 490,000 fixed for 10 years at 5.75% but its a 30 year loan., and a smaller loan for 54,000 dollars at a variable rate. Obviously...