If I have a student loan for 30K and no other debt. I have 4 CC with no balances. I have a perfect record no late payments at all. I also have already paid off my car loan. If I make about 35K a year and make 287 in Student loan payments, but no rent b/c I live at home, will I be able to get a mortage?? So all I pay a month is 278 in student loans. How will the banks look at me eventhough I'm still technically in 30K in debt?????
I used to be in the mortgage business, and your situation shouldn't be a problem - It depends on your loan amount and what the payments are. For most "A" mortgage programs, you need to be ~28% of your total gross income for your mortgage payments, and ~36% of your gross monthly income for your total payments (excluding stuff like utilities, insurance, groceries). For $35K, your monthly gross income is: $2917. The maximum mortgage payment for your situation is: 2917 x .28 = $845. The maximum total debt you can have is: 2917 x .36 = $1050 So with your payment of $237, can you go for the maximum mortgage payment? 1050 - 237 = $813, You may be able to with a flexible loan program, but some mortgage companies may make you stick to $813. Now, how much of a loan can you afford? For a 30 year mortgage at 7% and approximately $1000 in yearly taxes, you can afford a $125,000 loan. Remember, I'm just giving you estimates. Hope this helps.