Posted by NN on March 04, 2005 at 08:58:54:
In todays economy you can always find a lender willing to work with you. The rate you obtain may not be what you wanted but at least you can buy the property and refinance later. Sub prime lenders may be the best way to go. If you need help with a MD loan, i may be able to help you.
How much can I afford?? Help please. - Posted by mdinvestor
Posted by mdinvestor on March 04, 2005 at 08:30:36:
I just bought a new house in MD and 10ac in WV. I have a rental as well. I want to buy another rental right now to take advantage of the rising prices here in MD. I’m not sure if I’ll be able to find a lender willing to work with me. Here’s my situation, will I be able to afford anything???
gross income including rental 10k/mo
rental mortgage 807/mo
new house mortgage 2659/mo
land mortgage 250/mo
cars paid off and no other outstanding debts
credit scores: mine 685, wife 640
rental: owe 110k, value 175k
new house: owe 360k, value 500k
land: owe 40k, value 45k
What and HOW can I afford something else???
I’d like to buy something without refinancing anything. I don’t mind taking out a security interest lean on my new place. I also don’t mind having a small negative cash flow for the first year on the new rental either.
Thanks in advance.
Re: How much can I afford?? Help please. - Posted by Randy (SD)
Posted by Randy (SD) on March 04, 2005 at 10:03:43:
You find a lender that allows higher debt to income ratios. Your current gross annual income is $120,000 in the “standard” equation for debt to income ratio is 36%, your current annual debt (for mortgage servicing) is $45,348. This exceeds the standard of 36%. There are many subprime lenders that will exceed this ratio but you may not get the best interest rates. What price range of property are you looking for?
Say for example you found a lender that allowed 45% debt to income ratio and received a 7% interest rate, you could afford a maximum loan amount of $93,000.