Help with estimating a mortgage we can afford (details inside)

[whipped]

We will be buying a home next year but since my g/f has 800 FICO (pulled actual mortgage FICO recently) and due to our unique situation, she was wondering what she would qualify for by herself. We also like to make sure if something happens to either of us, her or I can pay for the mortgage comfortably (which I can).

 

The purchase price of the new home will be $200K. The price is set as we're buying the home from her family. We will be putting the 20% down for her to obtain $160K mortgage. Her debt is very low currently even though she does not have a job (more on that at the bottom).

 

Breakdown of the property:
Purchase Price: $200,000

20% Down Payment: $40,000

Property Tax: $4,560 / year

Home Insurance: (not sure?)

 

Her Debt:

Auto loan = $260/month ($16,000 or so left)

Credit card = $50/month (~$2,000 total on one card)

 

This is where it sort of gets tricky as right now she's looking for a job; she had a $75K/yr job but wants to take a step back and hoping to go as low as $40K/year.

 

Realistically what is she looking at affordability wise? Does she need say $50K/year job or for us to put more on the down payment?

 

Any help is appreciated. Thank you

[Brian B The Loan Professor]

Here is the math on 40k - 3300 a month

45% of that is $1500

Assuming that is the max for all payments and mortgage

She has $310 in debt so that leaves 1190 for the mortgage plus taxes and insurance

The taxes are very high - must be the northeast or texas?

at 4.25% the principal and interest will be around $780

add in the taxes - $380 -

That doesnt leave much for insurance - if this is in a high cost area for insurance (say coastal texas) then she may not be able to swing it

If the insurance isnt so bad she may be ok - with great credit and a large down payment she should be able to stretch it to 50% of her income and still qualify

 

Try to get a quote for insurance then add that in to see where the debt ratios are

 

Good Luck

Hope this helps

[whipped]

Thank you so much Brian! We are in New Hampshire (no sales tax but real estate & corporate taxes are very high).