I make 40,000 a year and have good credit. What kind of loan can I get for my first home?

Good credit-one credit card and school loan (20K)

No outstanding payments or bills

Pittsburgh area-desire to buy a home that is 189,000. Can I afford this??

I make 40,000 a year and have good credit. What kind of loan can I get for my first home?

If you have good discipline, and a little patience, you could live the next 24 months as if you%26#039;d had a pay cut to $30K, and save up $20K in two years With a $20K downpayment, you could get the mortgage YOU want, instead of the one a lender wants you to have.

As a good %26quot;rule of thumb%26quot;, you never want your housing costs to be more than 25% of your income. Lenders will offer you far more, but life with one less room in your home is far easier than having to struggle to pay the mortgage!

There are many great homes in Squirrel Hill, Swissvale and Shadyside closer to $150K. Don%26#039;t fall in love with one house and then figure out if you can afford it. Figure out how much

you want to spend each month and work back the other way!

Happy house-hunting!

I make 40,000 a year and have good credit. What kind of loan can I get for my first home?

I don%26#039;t think you can swing a $189,000 home payment on a single income of $40,000, but with good credit, you can get any loan that you want. Congrats!

I make 40,000 a year and have good credit. What kind of loan can I get for my first home?

depends on how much you have as a downpayment

I make 40,000 a year and have good credit. What kind of loan can I get for my first home?

No, you can not.

The maximum you can stretch yourself for a home loan is 3x your annual income, or in your case, 120,000. from that, you have to subtract your outstanding school loan of 20,000, which leaves you with 100,000K.

Subtract any other debt from that, and that%26#039;s what you can afford to pay in a loan.

So far, you need at LEAST 89,000 in cash to be able to afford this home.

My advice, build up your cash reserves, pay down your existing debt, and keep a watch on your credit score.

You may want to consider getting a second job for some extra income to achieve your goal more quickly.

I make 40,000 a year and have good credit. What kind of loan can I get for my first home?

Wow you will be strapped tightly if you don%26#039;t have a large down payment. Just remember the Mortage companies will give you the loan even if they know you can not afford it.

I make 40,000 a year and have good credit. What kind of loan can I get for my first home?

Your best bet is to talk to a local mortgage loan officer. A good place to start is the bank you currently have your checking account with or a big name lender like Wells Fargo Home Mortgage. You want to call in and ask them for a prequalification. The loan officer will be able to work up numbers for you telling you how much house you can afford and what type of loan program will work best for you. PA has first-time buyer programs available (PHFA) and there is at least one program specifically for teachers.

Based on what you have told us you would not qualify for a home at $189K unless you have A LOT of money for your down payment.

Good Luck!