How much will banks be looking for salary-wise to afford a 200k home loan?

TS, i wouldn't give up too soon. have you looked at government insured loans like what the FHA offers? http://www.hud.gov/buying/loans.cfm

also, my guess is that Obama will introduce some sort of legislation that will make homebuying easier but i imagine that banks and the government will still require some fairly decent financials.

either way, start saving and work on your credit score. who knows what'll happen in a years time.

-Jeff

Originally Posted by Tokyo Slim

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Sweet... so maybe I only need to double my income! + save $40k somehow.

Crap. Perhaps I'll take a second job and start putting all the money into savings. Assuming I have the willpower. That sort of terrifies me though.
How does one live on 23.5K/yr? (serious question)

Originally Posted by arnach

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How does one live on 23.5K/yr? (serious question)
Strangely enough, someone who makes more than you would ask the same about what you make. I find this concept to be slightly ridiculous... but then again, it seems to be for the most part, true. There really is never "enough money". To put it bluntly, I live within my means. Sort of. I own next to nothing of value, as most of my money is tied up in self sustenance and small luxuries I allow myself, such as cigarettes and the occasional nice dinner out. (generally I will not spend more than $30 on a "nice dinner out" for reference and that is about a once a month deal) I do not save money. I live check to check (thats the plan, anyways) I shop for value and bargains when it comes to things like soap and hygene products, and groceries. I don't buy things that aren't on sale. I buy on average, one pair of jeans or so a year. two or three t-shirts. six pairs of socks, six pairs of underwear. two pairs of shoes. I see maybe six-ten movies in the theater a year. I used to buy a lot more DVD's than I do now, but they were usually from the closeouts and used bins. I'd say that I probably buy one every other month now. Every year I probably spend about... $500 on computer parts and electronics. My car gets pretty good gas mileage. I don't get haircuts that often, but when I do, I go to my local barber shop and he cuts it for $15. I usually tip him another $5. Thats pretty much how it goes. Just in case you were curious. And I actually make around 25k a year... . "doubling my income" was a rough measurement.

My suggestion would be to talk to a realtor from a large company. They generally will have a loan group in house. You can speak with the realtor and loan officer and get a good idea of what's out there, along with what you might be able to afford and what they would be willing to give you. Just remember to always be realistic about what you can pay off each month. At least during the housing boom, I was offered MUCH more than I could ever afford to pay off.

Do you think places like Credit Unions would have better terms? I mean, I could easily go open an account with the Boeing Employees Credit Union and have at least (some) history with them before I'm ready to buy.

Just as something to put out there, my girl checked into a loan last year (different time but roll with me here) just for fun. She has very good credit, only your basic debt (some student loans and car payment), lets say a salary in the upper 40s, and had 0 money down and was only approved for around $95,000.

I used this calculator with her stats and it was pretty spot on so might be good for you as an estimate. http://cgi.money.cnn.com/tools/house...useafford.html

Maybe consider getting a downpayment from family? They often help first time home buyers as they don't ask for interest (usually)

Originally Posted by visionology

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Just as something to put out there, my girl checked into a loan last year (different time but roll with me here) just for fun. She has very good credit, only your basic debt (some student loans and car payment), lets say a salary in the upper 40s, and had 0 money down and was only approved for around $95,000. I used this calculator with her stats and it was pretty spot on so might be good for you as an estimate. http://cgi.money.cnn.com/tools/house...useafford.html Maybe consider getting a downpayment from family? They often help first time home buyers as they don't ask for interest (usually)
Family? I'd probably have better luck getting it from strangers, to be honest. Most of them have been hearing from my mom that I'm a gay, immoral, drug addicted/dealing, devil worshiping career criminal for the better part of a dozen years. I doubt I'll be getting any family loans. Plus, not that many of them are that well off. Some are - but not many. Unless by "family" you meant the mafia. In which case, I am highly considering asking them for a loan.

In the netherlands, mortage maximum is about 4-5 times annual salary, so you'd look at 40 tot 50 a year. However, since we get a pretty sweet tax-break on these loans, I don't think it's like this anywhere else.

Originally Posted by gamelan

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TS, i wouldn't give up too soon. have you looked at government insured loans like what the FHA offers? http://www.hud.gov/buying/loans.cfm

also, my guess is that Obama will introduce some sort of legislation that will make homebuying easier but i imagine that banks and the government will still require some fairly decent financials.

either way, start saving and work on your credit score. who knows what'll happen in a years time.

-Jeff

+1, m'lady and I almost bought a house earlier this year, and the general FHA rule is 3% down, IIRC. However, even on a 200k property, you'll need to $10-15k cash up front including taxes, inspections, mortgage insurance, etc.

We're still renters, FWIW. Got cold feet because prices were still going down, and a low price trumps a low interest rate, IMO. First-time homebuying is a *****.

Originally Posted by Tokyo Slim

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To put it bluntly, I live within my means.

To put it bluntly, you won't be anymore.

Trying to afford a 200k house with 0 down on 25k a year is not living within your means. With home ownership, there are many other costs than mortgage, taxes, and insurance. What happens when the furnace breaks? roof/basement leaks? kids throw a baseball through your window?

If you are living paycheck to paycheck, you are a renter.

Originally Posted by briancl

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To put it bluntly, you won't be anymore.

Trying to afford a 200k house with 0 down on 25k a year is not living within your means. With home ownership, there are many other costs than mortgage, taxes, and insurance. What happens when the furnace breaks? roof/basement leaks? kids throw a baseball through your window?

If you are living paycheck to paycheck, you are a renter.


Some of the many reasons that i'm not looking for a "house"... Also, the whole point of this thread is that i'm *not* trying to afford such a loan on a 25k a year salary. I wanted to know what kind of salary I'd need to be able to afford it...

Trust me guys, i know that l'm at least two years away from buying anything. I figure it doesn't hurt to know what the deal is before i get there though.

I'm not going to - even if it were possible to do so, jump into a mortgage with what i make now. That has never been the plan...

Originally Posted by Tokyo Slim

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Or maybe start kissing up to my older relatives/win the lottery/start selling crack

There's no money like dope money.

The bigger question nowadays is how much salary is necessary to afford to by a bank.

Originally Posted by iammatt

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The bigger question nowadays is how much salary is necessary to afford to by a bank.