Can I get a $300,000 home loan with low income, but a big down payment?
I want to purchase a home in the $300k range. I actually have enough cash to buy the home outright but I don't want to, rather I'm seeking a 30 yr. mortgage. The problem is that my income is only $25,000 a year. I know that doesn't even qualify me for an $100k mortgage but is there some government program that can help someone like me? Maybe if I put 50% down payment would that help? I don't want to use all my $300k cash to buy the house. My credit score should be around 700 and I have no debts at all. Plus I have $125k in my 401k, if any of this helps at all. What's the best way to make this work, with using as little cash as possible? I need my cash for investing in collectibles.
- Anonymous4 weeks ago
- L. E. GantLv 74 weeks ago
If you can afford to pay $300K for a property, how come your income is only $25K?
Even at 1%, that $300K should be raising your income by $3K a year. In fact, it should be earning you at least $30K a year or more on top of your $25K (unless your $25K is the income from that $300K).Even then, owning a house (free and clear) will cost you a huge chunk of your $25K income a year (rates, maintenance, and other small costs -- on average, those costs are between 5 and 10% of the property's market value). So, even if you take out a small mortgage, you'll run into financial problems.
- babyboomer1001Lv 74 weeks ago
The income must support the loan.
- Christin KLv 74 weeks ago
I have no idea why you think it's a better idea to carry a mortgage on your yearly income than it would be to own a house worth that much outright with NO mortgage. You may want your cash for "Investing in collectibles" but you aren't making any financial sense at all here.
No debt, good credit, enough cash to buy a house--and you want to have debt? No sense to that. Carrying a $150K debt is not smart on your income. Not only that, but you don't say how old you are--I'm betting you're not young if you have that much savings and that much in your 401K. What do you think it will be like later in your life if you don't have that 401K for retirement and a paid-off house? One serious illness and your entire plan will crumble. Be sensible. If you want a house, buy a CHEAPER house, and pay cash--and then you will have an ASSET you can use if you need it later, AND you'll still have a good credit score and no debt. You would be able to afford taxes and insurance (including whatever collectibles you own) AND investment in your trinkets if you do that.
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- Raymond L.Lv 54 weeks ago
i have read your question over,
I have many years in real estate investment experince.
I see NO REASON why you should take out a loan and not just pay cash for the place.
you will save yourself the 5,000$ in closing costs, PLUS the interest you will pay on the loan, Yes I know rates are only 3.125% but, NO, If you have the money, PAY IT IN CASH.
i was in pretty much the same boat as you about 10 years ago. I found a small house, $150,000, i had $160,000 in the bank. Realtor tried selling me a bigger house for more money, I said NO WAY. and I'm glad i did.
Investing in collectables??? like what??
- EvaLv 74 weeks ago
You can't afford the taxes, insurance, and maintenance on a 300k house on your income. No bank is going to loan you more than 50k, and the amount of your savings eliminates you from any first time buyer programs.
- JudyLv 74 weeks ago
Put $225K down.................
- n2mamaLv 74 weeks ago
No programs for that. Your down payment would need to be around 225k for the 75k mortgage you might qualify for. Your 401k balance doesn’t matter (and shouldn’t be touched). If you don’t want to use most of your cash, then buy a cheaper house.
- oil field trashLv 74 weeks ago
Mortgage plus taxes plus insurance will be at a minimum $1,000 to $1,200 a month. That is a pretty good chunk of your take home pay each month.
- Rick BLv 74 weeks ago
A better question is how will you afford a $300K home on a $25K income???? How will you pay the taxes, home owners dues, upkeep, utilities, etc.? It seems like a very bad financial decision. I would say that spending about 2 times your annual salary on a house is more reasonable.
You make $25K and want to "invest in collectibles"????
Dude, you have some warped financial goals.
Any way, the best person to answer this would be your Realtor and/or Mortgage broker.