First of all I want to start by saying I m not certain that I will even purchase a home in the next few years, I just have some questions about buying a house because I m thinking it might make more sense then renting an apartment. I ll give some background information. I m a freshman in college. I owe around $7,500 on a $25,000 car which is under $150.00 a month. I m 19, have had 3 car loans successfully paid off, credit cards totaling $4,000 of limit but they are always paid off in full every month. I have a few thousand dollars in savings but nothing too drastic. My credit score is somewhere between 650 and 725 but keep in mind I only have around 14 months of credit. I work a part time job of around 20 hours a week, but Its good money in my opinion. I make around $1500 - $2000 a month gross income. I ve seen a couple houses I like online for under $40,000. Is buying a home of that price in the next four months out of reach realistically? I m not really worried about affording the payments because I will have 1-2 room mates paying some of the bills, and my parents are great and would definitely help me out. How much do you think I would have to put down? And do i have any remote chance of getting approved? I don t think I have anyone that could cosign for me. It just seems like with the tax credit, and the current house prices it would really make sense if it s possible. I really don t wanna fork out around $700 a month just to rent when it seems like i could be paying close to that to own.
You aren t going to find a bank willing to mortgage a 40k house. 60 maybe.You need to raise your income, that is not good income, and sustain a job for 2 years.Quit buying cars too. 4 car loans in less then 2 years will make it look like you have some sort of spending problem, the banks will worry about that.
To qualify for a mortgage in this economy, you need two years of full time employment. If your parents co-signed, you could wave that requirement.As for buying a house under $40k, most banks will not issue a mortgage for under $30,000 to $40,000. Talk to a local mortgage broker about your options, and to get pre-qualified (real estate agents will not talk to you unless you are pre-qualified for a loan and if they do, they re shady or very inexperienced agents).An FHA loan can have a very low downpayment, but expect $10,000 total including closing costs, inspections, and having utilities turned on. And, of course, houses in that price range often require appliances, paint, and other TLC.Oh, and if you re looking at a foreclosure, banks almost never accept an offer on a foreclosure in that price range unless its a cash deal... too many chances for it to fall through
