Can I afford a $140,000 house making $50,000 a year?

I make $50,000 a year. I have no car payment or student loan. I have about $5,000 in credit cards. Can I afford a $140,000 house?

Update:

I do have enough money to put a 20% down payment but Im not sure if I want to. Any suggestions on that as well?

Update 2:

I have a credit score of 720... is that good?

4 Answers

Relevance
  • 1 decade ago
    Favorite Answer

    Sure!

    The issue has to do with debt ratios. A rule of thumb is that you can afford a mortgage that is 3 to 3-1/2 times your gross annual income (before taxes).

    In general, lenders will let you spend between 28 to 33% of your gross monthly income on your mortgage payment (including property taxes and insurance).

    Your total debt load (mortgage plus car payments and minimum payments on revolving balances) must not exceed about 38 to 41% of your gross monthly income.

    These numbers are realistic general guidelines and your situation could be different.

    • Login to reply the answers
  • Anonymous
    1 decade ago

    Yes you can, but to be absolutely sure your credit is good and your income is calculated correctly, you need to contact a lender. You should not need to put 20% down either, but your payments will be lower if you do.

    Source(s): Lender in California
    • Login to reply the answers
  • 1 decade ago

    Your score is good & it sounds like you will easily qualify. I would put the 20% down & go conventional which will allow you to avoid paying mortgage insurance. You also get a slightly better rate. Or you can go FHA with 3.5% down- slightly higer rate & pay mortgage insurance. Good luck.

    Source(s): 24 years mortgage lender.
    • Login to reply the answers
  • 1 decade ago

    I am Mrs Maureen Lewis from Italy,God has bless me with three kids and a loving husband , i promise to share this Testimony because of God favour in my life,4months ago i was in desperate need of money so i thought of having a loan then i ran into wrong hands who claimed to be a loan lender not knowing he was a scam.he collected 1,700USD from me and refuse to email me,since then i was confuse,but God came to my rescue,one faithful day i went to church after the service i share idea with a friend and she introduce me to DAVIDSON WHYTE OF DAVIDSON LOAN FIRM,she said she was given 35,000USD by MR WHYTE,so i collected his email Address ,he told me the roles and regulation and i followed,then after processing of the Documents he gave me my loan of 240,000EURO.you can contact him on via email davidsonloanfirm88@yahoo.com

    • Login to reply the answers
Still have questions? Get your answers by asking now.