670 score, 16k, want to borrow 700k

[Anonymous]

Anonymous wrote:I don't think you'll be able to borrow $700k with only $16k to put down. That $16k is only a bit over 2% of the amount you want to borrow. Most lenders want you to put down at least a 5% down payment. Zero-down mortgages do exist, but they require good credit.

Also, you really don't want to be cash-strapped and paycheck-to-paycheck after buying a house. Houses break and are expensive to fix.

Is there hope for you? Sure—for the future. You make good money, so you can save. Take a year or two to lower your expenses, save up for a larger down payment, and get your credit in better shape. Then you'll be in a better position to buy.

Even with two moves? Leave 4500k and leave where ever I rent next to my own place?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP will the $16k wipe you out? How will you pay for emergencies, house maintenance, life happens?-

Keep renting (somewhere much cheaper) and build your credit and emergency fund

I will continue to live paycheck to paycheck.

You make A LOT but you need more than 16k to buy a house. Sorry. Closing costs alone for a 700k will be AT LEAST that, not even including a down payment.

+1 budget 3% of purchase price for closing costs.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP will the $16k wipe you out? How will you pay for emergencies, house maintenance, life happens?-

Keep renting (somewhere much cheaper) and build your credit and emergency fund

I will continue to live paycheck to paycheck.

You have a spending issue. You need to get your rent down to $2K-2500 a month, pay off all your debt and save. There is zero excuse to have no savings and debt at that income level.

This is the harsh truth, OP. Your finances for your income level are pretty messy. Agree with living in a lower priced rental, cleaning up loans and credit and building a more robust down payment. This will look different in a year or two if you buckle down.

[Anonymous]

Anonymous wrote:You might get a mortgage but you’re not going to get a great rate. 16K isn’t a lot for a down payment. Do you have other savings already? I think that mortgage is way too high...I’d say tighten up your spending discipline before jumping into a mortgage...

Can’t I refi for a better rate a year or so in?
At least 4500 would go toward actually equity and then interest would be tax deductible right?

[Anonymous]

**op back- first time home buyer if that matters

[Anonymous]

Anonymous wrote:

Anonymous wrote:I don't think you'll be able to borrow $700k with only $16k to put down. That $16k is only a bit over 2% of the amount you want to borrow. Most lenders want you to put down at least a 5% down payment. Zero-down mortgages do exist, but they require good credit.

Also, you really don't want to be cash-strapped and paycheck-to-paycheck after buying a house. Houses break and are expensive to fix.

Is there hope for you? Sure—for the future. You make good money, so you can save. Take a year or two to lower your expenses, save up for a larger down payment, and get your credit in better shape. Then you'll be in a better position to buy.

Even with two moves? Leave 4500k and leave where ever I rent next to my own place?

I don’t understand what you’re asking here.

[Anonymous]

I am so confused here. How do you make that much income and have such a crappy credit score??
And why on earth are you looking to buy a house in the $700,000 range with so little savings?? Why aren’t you looking at least in the $500,000 range? There are plenty of nice houses for that much.

[Anonymous]

Also:

Anonymous wrote:A move to would like eat 1/2 of my 16k .

A local move should not cost $8,000.

[Anonymous]

Anonymous wrote:I am so confused here. How do you make that much income and have such a crappy credit score??
And why on earth are you looking to buy a house in the $700,000 range with so little savings?? Why aren’t you looking at least in the $500,000 range? There are plenty of nice houses for that much.

Where? Any place in that range I’ve found either is a tear down, a school that would require private school, or a crazy high (hoa ) condo.
I would like to keep my entire mortgage, taxes, and etc to under 4000 preferably in the 3300 range.

[Anonymous]

Anonymous wrote:Also:

Anonymous wrote:A move to would like eat 1/2 of my 16k .

A local move should not cost $8,000.

Movers are 1k, deposit and first month rent looking at 5-6k and still pay current rent.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I am so confused here. How do you make that much income and have such a crappy credit score??
And why on earth are you looking to buy a house in the $700,000 range with so little savings?? Why aren’t you looking at least in the $500,000 range? There are plenty of nice houses for that much.

Where? Any place in that range I’ve found either is a tear down, a school that would require private school, or a crazy high (hoa ) condo.
I would like to keep my entire mortgage, taxes, and etc to under 4000 preferably in the 3300 range.

DP but honestly I think you should buy a condo. The condo market is not going insane like SFHs and you can’t afford down payment/closing costs on a SFH anyway. The HOA fees are annoying but you’re 2 years from being able to buy a SFH. Might as well build some equity.

[Anonymous]

Anonymous wrote:

Anonymous wrote:You might get a mortgage but you’re not going to get a great rate. 16K isn’t a lot for a down payment. Do you have other savings already? I think that mortgage is way too high...I’d say tighten up your spending discipline before jumping into a mortgage...

Can’t I refi for a better rate a year or so in?
At least 4500 would go toward actually equity and then interest would be tax deductible right?

Very, very little of your mortgage payment goes to equity in the first few years. You also are unlikely to be able to refi after the first year, because you are unlikely to qualify for a conventional loan now, nor will you in a year given how little you are planning to put down on a house.

You would be much better off moving to a cheaper place (less than half your current rent), and then spending the two next two years boosting your credit score while putting everything you’re no longer paying in rent into savings toward your down payment.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I am so confused here. How do you make that much income and have such a crappy credit score??
And why on earth are you looking to buy a house in the $700,000 range with so little savings?? Why aren’t you looking at least in the $500,000 range? There are plenty of nice houses for that much.

Where? Any place in that range I’ve found either is a tear down, a school that would require private school, or a crazy high (hoa ) condo.
I would like to keep my entire mortgage, taxes, and etc to under 4000 preferably in the 3300 range.

DP but honestly I think you should buy a condo. The condo market is not going insane like SFHs and you can’t afford down payment/closing costs on a SFH anyway. The HOA fees are annoying but you’re 2 years from being able to buy a SFH. Might as well build some equity.

Buying a condo to live in for just a couple of years is a terrible idea. The closing costs will more than eat up the small amount of equity OP is likely to accrue over that time period.

[Anonymous]

Anonymous wrote:

Anonymous wrote:You might get a mortgage but you’re not going to get a great rate. 16K isn’t a lot for a down payment. Do you have other savings already? I think that mortgage is way too high...I’d say tighten up your spending discipline before jumping into a mortgage...

Can’t I refi for a better rate a year or so in?
At least 4500 would go toward actually equity and then interest would be tax deductible right?

Rates are likely to be higher in a year, and you still won’t have any equity.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I am so confused here. How do you make that much income and have such a crappy credit score??
And why on earth are you looking to buy a house in the $700,000 range with so little savings?? Why aren’t you looking at least in the $500,000 range? There are plenty of nice houses for that much.

Where? Any place in that range I’ve found either is a tear down, a school that would require private school, or a crazy high (hoa ) condo.
I would like to keep my entire mortgage, taxes, and etc to under 4000 preferably in the 3300 range.

DP but honestly I think you should buy a condo. The condo market is not going insane like SFHs and you can’t afford down payment/closing costs on a SFH anyway. The HOA fees are annoying but you’re 2 years from being able to buy a SFH. Might as well build some equity.

Buying a condo to live in for just a couple of years is a terrible idea. The closing costs will more than eat up the small amount of equity OP is likely to accrue over that time period.

Double check your math. OP is currently setting $54k/yr on fire for rent. Merely not making money would be a huge win.