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vetswife

what kind of a payment can I realistically afford

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with

68k a yr income

550 mth debt

3 person family in the northeast

mid 600 scores

 

house price range/monthly payment total (piti)

 

all the pre-qual calc deal with conventional

 

 

Im wonderin if im lookin at more then I can get approved for

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nobody can tell you how much you can afford. A better question would be how much do you want to spend.

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let me re-phrase that, for debt to income requirements....

 

 

whats the max

 

 

pre-qual calcs online are set up conventional loan limits

Edited by vetswife

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remember to calculate in home owners insurance and property taxes into your monthly payment calculations.

Edited by vintagespeed

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piti= principle, interest, taxes and insurance

 

the taxes are a weird critter for us too becausse of our tax exemption....

 

I don't know how it works with figuring out the first yrs escrow and have to call the town about it

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the taxes are a weird critter for us too becausse of our tax exemption....

 

Elaborate. Do you not have to pay real estate taxes or what?

 

At your income I would suggest no more than a $200k home, DEPENDING on your taxes.

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The town (every town in the state) has an initial 10% off assessed value

then there is also various exemptions by town.

this particular town there is the 10% then another $4,000 exemption of property taxes.

 

HOWEVER

it is worded that you have to submit the paperwork by Oct. 1st for the following June billing cycle (billed Jan and June).

This is what their website says as well as speaking to someone on the phone.

The taxes in the area range from 4,000-7000 for homes in the area

some areobviously higher, some lower.

So, do they full taxes get factored in to DTI because it looks like you pay them for the first year?

or can they be prepaid and then factored off of the exemption or what??

 

 

I cant actually touch a house in Ct unless its in a slum for 200k btw

Edited by vetswife

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the taxes are a weird critter for us too becausse of our tax exemption....

 

Elaborate. Do you not have to pay real estate taxes or what?

 

At your income I would suggest no more than a $200k home, DEPENDING on your taxes.

 

 

I have to agree. Based on your 4-7k range of taxes, you are looking at a monthly escrow payment of $500. This only leaves you with about $1300 for principal, interest and mortgage insurance. At just around 200k loan amount (maybe a tiny bit higher depending on how low a rate), you'll be right there at your max.

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so the 4000 a yr tax exemption for disabled vets doesn't come into play at all?

 

va loan (no mortgage insurance) maybe you meant home owners insurance?

Edited by vetswife

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I was in the Navy back in the day. Thank him for his service.

 

so the 4000 a yr tax exemption for disabled vets doesn't come into play at all?

 

Is this a income tax deduction or is it a real estate tax deduction? If a disabled vet buys a home, they do not have to pay $4000 of the real estate tax every year, forever? I have never heard of that. Could it be a local thing?

 

Don't sweat the MI, that won't apply and really doesn't change ($50+/- a month) the bottom line. $200k home will be a manageable payment and IF you get any tax/real estate credit, put that cash in a savings account. The disability will not get better, always be financially prepared for the future especially in this unfortunate situation.

 

Best of luck to you both.

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Thanks, i'll be sure to pass it along (and take it to heart for my own service , heh) also, thank you for your service, the army is jealous of your big guns and cool toys, but don't pass that along

it is a local thing

its a property tax exemption. It's similar to other disability exemptions, elderly exemption etc.

You're never billed it, in the town we live in now the exemption is lower but we aren't billed taxes on our cars because of it.

 

I mention him because I do not intend to be on the mortgage or deed (though Im exploring the double exemption)

 

we were both Army

nice to meet ya squid :mellow:

His disability hasn't gotten better or worse really (thank god)

Edited by vetswife

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While we're on the military love fest, my husband is in the Navy Reserves currently. 8 years active duty and getting ready for a year in Afghanistan.

 

I did mean mortgage insurance, because you hadn't yet mentioned you were using a VA loan (I guess I could have looked at your screen name :lol: ).

 

With a little more background on the tax exemption, I understand it a little better. Your biggest problem in fighting to use the lower amount is going to be the fact that you may have to pay as many as 2 bills before the the exemption is processed. That's going to be difficult to convince a lender to qualify you off the lower amount. If they don't escrow for the higher, your escrow account will be severely short and they will jack your payment up to cover the shortage. It won't be pretty.

 

I think you have to go into this assuming the worst, that you'll be qualified off the higher amount, and when you get savings at a later date, your escrow account will get readjusted and your payment lower.

 

With that, here's how your qualification will break down. At 68k per year, your monthly payment shouldn't be more than 31% of your monthly gross income. That's appx $1800 per month. Your total debt should be more than apprx $2500 (I'm rounding all these numbers up). Those numbers work with your current monthly debt. If taxes are 5k per year, you need $416 for taxes and we'll round all the way up to $500 to include insurance. That means you have $1300 left for principal and interest. $230,000 loan at 5.5% would be about that.

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I am just curious is this $4K off the property taxes owed or $4K off the property appraisal? I know here in FL elderly gets an exemption but it is off the appraised not the actual taxes. So instead of taxes being based off $150K home it will be based off of $146K.

 

Tammy

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I am just curious is this $4K off the property taxes owed or $4K off the property appraisal? I know here in FL elderly gets an exemption but it is off the appraised not the actual taxes. So instead of taxes being based off $150K home it will be based off of $146K.

 

Tammy

 

That's how it is in Texas as well

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actually...nope

 

I'm not familiar with "PILOT"

I'll check it out

 

the exemption works like this, 10% of the asessment then 4,000 off the taxes due to his disability rating....the 10% is across the board in Ct, the 4k happens to be town specific

for instance, in the town we're in now we would have 10% of the asessment of real estate and $2200 exempt on any real property (this can include motor vehicles)

we don't pay any taxes on my bmw and his stratus because the taxes fall well under the 2200 exemption.

 

 

I hope your husband remains safe on his tour jop3 (and I mentioned va in the thread title...lol :blush2: )

 

talking to the seller of the house we're interested in today...he's willing to pay all closing costs AND taxes for the next 6 mths after closing...I don't know if the taxes agreement is allowed

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First, thank you both for your service.

 

My husband is 100% disabled combat vet. We just bought a home with seller paying 8K in closing costs and us paying 0 down. We got back over $2K at closing. Getting seller concessions is a good thing. You sound like you found a very motivated seller.

 

Our VA loan was WAY over $200K and even with "taxes" and insurance, our mortgage payment is much below $2K per month. Scores were in low 600's.

 

Taxes vary from state to state. I posted the guidelines for tax breaks in every state in the military forum.

 

Directory of veteran benefits by State

 

Basically, you'd pro-rate the taxes and that would go to escrow. You'd file through the tax assessor's office for the reduction in taxes, and it all washes out in the end. We prepaid our insurance through escrow for the year using some of the earnest money we put on the property.

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First, thank you both for your service.

 

My husband is 100% disabled combat vet. We just bought a home with seller paying 8K in closing costs and us paying 0 down. We got back over $2K at closing. Getting seller concessions is a good thing. You sound like you found a very motivated seller.

 

Our VA loan was WAY over $200K and even with "taxes" and insurance, our mortgage payment is much below $2K per month. Scores were in low 600's.

 

Taxes vary from state to state. I posted the guidelines for tax breaks in every state in the military forum.

 

Directory of veteran benefits by State

 

Basically, you'd pro-rate the taxes and that would go to escrow. You'd file through the tax assessor's office for the reduction in taxes, and it all washes out in the end. We prepaid our insurance through escrow for the year using some of the earnest money we put on the property.

Thank you so much for that info! you've made my night!

Im am truly saddened to hear of any vet getting the 100% rating when I understand how hard it is (and how bad it must be) for the VA to give a full disability rating.

 

 

The seller is very motivated. We're extremely pleased with the house and its condition is truly move in. He, the seller was fussing that the sliding glass door didn't "glide" and he'd replace it before closing. I said to him "you wanna try some soap in the tracks first and save some money?" :dntknw:

They have brand new energy efficient appliances too, included with the sale , two weeks old!

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actually...nope

 

I'm not familiar with "PILOT"

I'll check it out

 

the exemption works like this, 10% of the asessment then 4,000 off the taxes due to his disability rating....the 10% is across the board in Ct, the 4k happens to be town specific

for instance, in the town we're in now we would have 10% of the asessment of real estate and $2200 exempt on any real property (this can include motor vehicles)

we don't pay any taxes on my bmw and his stratus because the taxes fall well under the 2200 exemption.

 

 

I hope your husband remains safe on his tour jop3 (and I mentioned va in the thread title...lol :rolleyes: ) DOH! (don't I feel dumb -haha!)

 

talking to the seller of the house we're interested in today...he's willing to pay all closing costs AND taxes for the next 6 mths after closing...I don't know if the taxes agreement is allowed

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That's a great link Dragonflyer.

 

Looks like vet love in the Keystone State:

 

Real Estate Tax Exemption

Any honorably discharged veteran who is a resident of the Commonwealth shall be exempt from the payment of all real estate taxes levied upon any building, including the land upon which it stands, occupied by him as his principal dwelling, provided that as a result of wartime military service the veteran has a 100% service-connected disability rating by the U.S. Department of Veterans Affairs; that such dwelling is owned by him solely or jointly with his spouse (an estate by the entirety); and that the financial need for the exemption from the payment of real estate taxes has been determined by the State Veterans' Commission. Upon the death of the qualified veteran, the exemption passes on to the unmarried surviving spouse if the financial need can be shown

 

Awesome for those who deserve it.

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I'll toss my recent experience in too...

 

Recently signed a contract for new construction. Turned down for VA due to unpaid collections (thanks Midland), but approved for FHA 3.5% down. Stats are pretty similar in most parts, mid score 645, income about $70k, monthly debt is a little lower at about $300. Was approved for a loan of $317k, at 5.25% interest, but did buy for a little less. Here in southern Maryland though, any house under $300k is a bargain or a shack that's falling apart.

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Thank you siberwolf

 

out of curiosity...how big was the collection amount?

 

Im thinking when the smoke clears we'll be left looking at a unpaid repo...that I will pay to go VA just because the loan affords more protection if something catastrophic should happen down the road.

 

With husbands modest raise its just a hair over 70k a yr for income

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Vetswife: How much is the repo? The reason I am asking is that the VA allows for a lot of felxibility in paying off debts, allowing seller to pay them also. We had one buyer that had a judgment for $15,000. She was backing out of her driveway and backed over someone that had passed out drunk in her driveway. Unfortunately for her, he was a lawyer!

 

She was able to negotiate a payoff for the judgment down to $7500. We had enough room in the deal to have the seller give that back to her to pay off the judgement through closing, saving her the out of pocket funds. May be something for you to consider structuring into your purchase.

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seller concessions?

 

 

 

the seller has already agreed to 2.5% closing costs...I can probably push it to 3%

 

 

 

its written as 5400(off the top of my head, within a cpl bucks)

charge off/ profit and loss write off

 

balance due $2720

 

 

 

its not a lot, but enough to put a slight crimp in my planning

Im also not sure which of the dollar amounts theyre actually want paid to be considered "settled" or "paid in full'

 

 

they've never tried to collect it and didnt follow Ct procedure for a repo, so...this is an irriatating debt to me...and its Cap1 so theyre not going to be flexible

I haven't really tried poking this one too much because Im not entirely prepared to deal with it at this exact moment.

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