I have been in America for more than a year and I want to buy a condo or a house. I live in Boston and make 20000$. I pay 750$/month for the rent and I have to pay 100$ for parking. I don`t have any debts but I couldn`t establish a good credit history yet. I can spend 10000 for the down payment and closing costs. I want to buy the most affordable place possible, but I think I can not find something less than 90000$. I have been searching mortgage sites, but they say that I should earn at least 40000$ to be eligible for a mortgage. So what can you recommend me? I am considering getting a mortgage for 15 or 10 years, is it a good idea? Please tell me what you think. Thanks for everybody`s help.
I honestly think you will have a hard time getting a mortgage in that price range if you income is 20K.
I think so too, but isn`t it strange that if I can get a mortgage my monthly payments will probably be less than my rent. I can`t understand those lenders, if I can pay 850$ per month I will probably pay the same amount for the mortgage too. Don`t you think so? But I think they don`t think that way.
You are going to be hard pressed to find anything in Boston to buy for less than $100,000. If you are lucky, you might find a studio or tiny one bedroom condo in Dorchester, Roslindale, or Hyde Park for less than $100K. If you only make $20,000 a year, it is unrealisitic to expect to buy real estate in Boston unless you are able to make a substantial (>$50,000) down payment. There may be other subsidized or government programs out there that may help, but your basic problem is not enough income.
They would also consider the property taxes and well as property insurance in that amount, along with PMI assuming a down payment of less than 20%
I don`t think I can find a better paying job, since nobody cares about my experience from my country. But I don`t think I can or want to get a subsidized housing apartment either. So you recommend that the best thing I should do is to continue to live in a rental apartment and try to find a better job to save money for the down payment. I think it will take forever. I read that the government has some programs about low income individuals. is my income too low to be eligible?
The rental market in Boston is very tight. This is actually the best time of the year to look for something better as all of the student who are graduating will be leaving their apartments at the end of May. People with children are generally given preference for subsidized housing in the city of Boston. In fact, if you aren't an unwed mother on welfare with children, you can practically forget about any kind of government program for rental housing. My suggestion is that you bide your time in a rental apartment until you build up enough experience to get a higher paying job, and in the meantime put some money aside for a down payment. This is not a good time to be looking for a house anyhow. The real estate market is crazy and people are making offers over the asking price for houses.
Sure, you can *BUY* anything you want. Buying means paying cash, and owning outright. Why do you consider it "buying" when you are not?
Natasa, don't listen to them, Natasa, you can afford a condominium but you must either do two things: 1) get married or find a lover who makes a good income so you can combine yours with his/her of 2) or continue to save for a down payment, you say you have $10,000 already saved. That's remarkable and enough to get a place of your own. Look into an FHA loan but I think you may have to be a US citizen to qualify. Go to this link for more info: http://www.hud.gov/progdesc/203b--df.html I too am in the market for a home but the interest rates are up a full point from just 6 months ago and I think alot of real estate is over priced and you'll just wind up getting ripped off. Wait another year maybe things will change. Another thing, 20k is not that bad it's just alot of these people who make more wind up spending more on frivolous worthless crap such as a name brand car and a cheap vulgar swimming pool and bratty kids with alot of junk and stupid karate and ballet lessons. When you make salaries in the 20s you have a better life because you are forced by circumstances to appreciate life's small rewards and place value on humans, not on their posessions. NATASA wrote: ------------------------------- I think so too, but isn`t it strange that if I can get a mortgage my monthly payments will probably be less than my rent. I can`t understand those lenders, if I can pay 850$ per month I will probably pay the same amount for the mortgage too. Don`t you think so? But I think they don`t think that way.
Saving money is great. However, there are advantages to investing your money. Recently, there has been a trend to mortgage homes based on your investment account. Put at least some of that $10000 savings to work on an investment account, buy strong companies or mutual funds, spread your buys over time and your return will be much better than a savings account, plus you may be able to use the investment account to leverage your buying power. Profit from the experience. http://www.creditsense.com
RE: Natasa, don't listen to th I have heard of debt/income ratio. It is bull-crap. I have never made more than $52,000 a year, but I have built my unsecured credit to over $150,000. It takes money management skills and patience. http://www.creditsense.com
RE: Natasa, don't listen to th Thanks. How long do you think it will take? I don`t want to wait for years to be able to get a mortgage, cause I don`t think my savings will grow that much. And how can I learn about the money management skills?
RE: Natasa, don't listen to th Yes but in mortgages that is a very important factor, sorry just pointing that out. She states her income was 20K and the houses were around 100K, the debt ratio would be way to high. I wish her luck, anything is possible, but going through a mortgage myself, I have learned alot about debt/ratio and how mortgage lenders view them.
RE: Natasa, don't listen to th I agree, a mortgage may be more diffuclt to get. But, lenders look at net worth also. Build your net worth, your assets to liabilites ratio. Build a portfolio of strong companies as soon as you can, but spread your buys. This stock market is not kind to people that make all their buys in one day. http://www.creditsense.com
If you do not have any credit AND no derogatory credit you'd need about $28,000 a yr in income to get approved for an FHA loan. Income of $20K a yr and no credit qualifies for a loan amount of about $60k If you have any credit and have no derogatory credit listed you may be able to get a higher approval. It has recently become easier for foreign nationals to get an FHA loan. Dave DWacaser@LANDMARKMTG.COM
J. Edgar is absolutely right. You were not here in 1987 but when the stock market crashed, a few years later so did the Massachusetts housing market. There was a joke going around then, which was, "What is the difference between a condo and syphaliss? You can get rid of syphaliss!" Right now is the absolutely worst time to buy any real estate in Massachusetts. I know someone who bought a condo in Weymouth about 13 years ago, and even in this market she still can not get her money back because she bought a dump! If you can, go to Government Center and see if you qualify for public housing. You did not mention what you do for a living, but all you may have to do is get some additional training or education. UMASS-Boston has a lot of certificate programs that are quite inexpensive and may help you. Good Luck!
