0 votes
My boyfriend and I are currently looking to buy a house preferably in the area of Valley Stream, NY. Our income combined is still to low to get a pre approval (combined income: 62,000 yr). We both have good credit scores and have been saving up money for this exact reason. therefore, my question is how can we get a pre approval or a mortgage loan in these circumstances.
asked 6 days ago in Buying a Home by anonymous

1 Answer

0 votes
Good morning and thank you for writing. Valley Stream, NY is a pretty expensive area (average price $475k from what I saw online). It would be difficult to qualify for an average home there on $62k a year. I did see homes in the $200 - $250k range that you'd be able to afford unless your other debts are high.

We actually have a guide on our site for down payment assistance

https://themortgagereports.com/33553/complete-guide-to-down-payment-assistance-in-the-usa

and another piece about buying a home with low income.

https://themortgagereports.com/24603/how-to-buy-a-house-with-low-income-in-2017

Valley Stream, NY appears to qualify as "rural" for USDA financing. No down payment is required and underwriting is flexible.

https://themortgagereports.com/14969/usda-loans-home-mortgage

FHA allows debt-to-income ratios up to 50 percent.

Fannie Mae's HomeReady program might be perfect for you.

https://themortgagereports.com/16976/97-mortgage-low-downpayment-3-mortgage-rates

Just 3 percent down payment, you are likely income-eligible (it's for moderate-to-low income), mortgage insurance is lower, and they allow debt-to-income ratios of up to 45 percent. It also allows you to consider income from other household members (roommates, family members, etc.) who are not on the loan.

With today's technology, you can find out in minutes if you can be approved and for what programs. Most mortgages are underwritten by software and you get a decision right away. Our affordability calculator

https://themortgagereports.com/mortgage-affordability-calculator

also helps you see what's in your price range, depending on the interest rate you get. Good luck, and thank you for writing.
answered 4 days ago by GinaPogol (41,100 points)
edited 4 days ago by GinaPogol
480 questions
631 answers
884 users