How much of a home loan can we afford on 40K gross year?

how much of a home loan can i afford

My husband and I will be first time homebuyers and are looking at a house that is 130,000. His gross salary is about 40k a year and I will not be working (back in school) for about another year or 2. Once I do start working I will be making about the same as him. We are wanting a loan based on his salary only so we. show more My husband and I will be first time homebuyers and are looking at a house that is 130,000. His gross salary is about 40k a year and I will not be working (back in school) for about another year or 2. Once I do start working I will be making about the same as him. We are wanting a loan based on his salary only so we can play it safe money wise. We would be putting a down

payment of about 15-20K down and owe $380 each month on a car payment as well as about $30 a month on a very low credit card. We don't always have a credit card payment. Other than that we just paid off $35,000 worth of school loans and only have $2500 that wont be in repayment until I graduate.

Answers

Best Answer: About $120,000.

Rule of thumb is that you can afford a house that is about 3 times your gross annual income. Some people qualify for more based on their individual situation (mine is 4x).

For best rates, you need 20% down and 740+ FICO. With less than 20% down you will have PMI (Private Mortgage Insurance).

Learn more by reading "Home Buying for Dummies" available from your public library or independent bookseller.

Source(s):

falsi fiable · 3 years ago

Source: answers.yahoo.com

Category: Credit

Similar articles: