Question

could I buy a house if I only make $20,000 a year?

I want to buy a house. I make a little over $20,000 a year. I will have $8,000 for a down payment and I plan on buying a house under $100,000. I have no credit card debt. I have good credit. My bills other than rent are only $300 total every month. I know I can afford the mortgage, but will a lender even bother with me since I make so little every year?
I am currently still in school which is why I don't make much. But I have no student loans or anything.

5 years ago - 6 answers

Best Answer

Chosen by Asker

As long as you've got a steady paycheck, and your mortgage payments (including property taxes) will be less than 30% of your net income (approx), and you've got 10 to 25% downpayment, no problem.

I bought a house for under $50 000 CDN in Thunder Bay while studying, and rented out a room to a classmate. I put in $16 000 in materials, and renovated it myself, then sold it for $80 000 - which made for a good downpayment on the next place.

5 years ago

Other Answers

You'll have to find the right lender. You should qualify for mortgage payments equal to about 1/3 of your monthly income. A small starter home, probably, depending on which area of the country you live in.

Contact a realtor. They can point you in the direction of a lender who can help you. Be wary of high interest, though, shop around for your loan. Get pre qualified before you even start looking.

If you're not planning to stay in the same area after you're through with school, you might want to wait to buy a home, they're hard to sell right now.

by Suba - 5 years ago

Go to one of the many "mortgage calculators" available on line and plug in your numbers. Think long and hard before buying a house while still in school. You don't know where you'll wind up after you graduate.

by jlf - 5 years ago

I think you will be able to buy a home. just not a great one. when my husband and I first bought our first home he was making a little over 30,000 thousand a year. we went to the USDA and got a first time home buyers loan. your bank should have one also. You might check on loans for (I'm guessing your a college student) students they might have something that will help you. Call your bank and ask.

by Mary B - 5 years ago

Hello

Your plans is ok for me and i want to advice you that my Boss applied for loan with (assuranceloans@live.com) and he has paid back the loan late last year and they can even give you the loan duration for 30 years and you will be paying installmentally.

MDI

by Md - 5 years ago

You can buy a house, but for about 50k, not 100k, you do not make enough money to make the mortgage, pay for insurance and the property tax on more then about a loan of 45k or so.

Closing costs will eat up a lot of the 8k you have saved.

by Landlord - 5 years ago