Can I buy a home?

kevmac · Joined: 03 Aug 2008 Posts: 1

I have ~800 credit score. I never purchased a home. I grossed 68k last year and will probably see 70k this year. I have only a 17k student loan debt. I am 36. I don't have much of a down payment (maybe 5k). I might be able to borrow from my retirement (10-15k).

Is there any first time buyer program or something that I could get to buy a 300k fixer upper home in Los Angeles area? I figure I could afford $2500/ month total until I get a roomate. :?

thanks

liverichly · Joined: 10 Feb 2005 Posts: 195 Location: Orange County, CA

Hi Kev,

These days you'll need to put down at least 3% on the home you are looking to buy. You can borrow from your retirement, take a hardship withdrawal, or just simply cash out your retirement early. It'd be best to talk to your retirement account administrator on which option would be best for your particular situation... but at least you now know all of those would be options. You could also get a gift from family/relatives for the down payment as well. These days it won't be hard to get the seller to pay for all of your closing costs, so I'd suggest you ask for that when you make your offer.

How does your income break down (hourly? salary? overtime? bonuses? commissions?) and what are your monthly payments on the student loan debt?

That will help determine what your debt to income ratio is to see if you could potentially qualify for a $300k sales price. Might be pushing it but could be possible.

jtrenton · Joined: 12 Sep 2008 Posts: 10

Until people start to put at least 20% down and start saving the real estate market has only one way to go - down!

mbrooks17 · Joined: 16 Sep 2008 Posts: 5 Location: SC

Kev,
Are you still thinking of purchasing a home? If so email me at mbrooks@greenplanetmortgage.com or give me a call. I am a direct lender doing all available programs.