200k down, Reality Check (for rent, co-op, credit)

[LongIslander21]

Originally Posted by S.I.B.

so you get the money in June 2016 when you're wife turns 18? Not a bad deal!

Whatever happened to your can't miss investment opportunity? Did you triple your money already?

We decided not to do the investment property.

[LongIslander21]

Originally Posted by skeeter31

Have you met with a mortgage broker to see what you qualify for?

We will be doing that in the fall. I have been working out our debt to income ratio and the back end allows us a $2100 a month mortgage with taxes and insurance and our car loans. Judging off that we can be under 43 percent by having a home under $400k and 9k taxes.

Our credit score is over 750 each.

[LongIslander21]

Originally Posted by ovi8

When are you buying if you're talking about money coming in a year?

January or so. Hopefully sooner. The more we wait the more padding we will have savings wise leading up to money coming to us in June.

[tummymumma]

Originally Posted by LongIslander21

We will be doing that in the fall. I have been working out our debt to income ratio and the back end allows us a $2100 a month mortgage with taxes and insurance and our car loans. Judging off that we can be under 43 percent by having a home under $400k and 9k taxes.

Our credit score is over 750 each.

You are barely there at your point. I am just wondering if this is purely to get the loan and that we shouldn't be concerned about being at your breaking point. Don't get into a house where the only thing you pay for is the house.

[ocngypz]

Your debt to income ratio is too high. stick with 28/34 ratio.

Your taxes are going to increase each and every year....plan on at least 3% per year.

Then there are all the fun bills..........Home Owner's Insurance........electric, gas/oil, repairs and maintenance...........

Your income doesn't count. What's your wife's annual income?

[LongIslander21]

Originally Posted by ocngypz

Your debt to income ratio is too high. stick with 28/34 ratio.

Your taxes are going to increase each and every year....plan on at least 3% per year.

Then there are all the fun bills..........Home Owner's Insurance........electric, gas/oil, repairs and maintenance...........

Your income doesn't count. What's your wife's annual income?

My wife's annual income is 40,000 a year before taxes.

[GiveMeCoffee]

Originally Posted by LongIslander21

My wife's annual income is 40,000 a year before taxes.

So you're off the books and she makes 40K? I'm sorry, but I don't see you being able to qualify for a mortgage for a 450k home... that's not enough in taxable income. How is it possible that you have a 750 credit score without taxable income?

[markjames68]

Originally Posted by LongIslander21

40-43 percent DTI (judging upon a 5% interest rate about a 1600 a month mortgage)

Too high in today's lending environment. They'll look for 33% max for mortgage, 38% when you consider other costs (insurance, taxes, etc.).

If you're putting $200K down for a $350K house and still have 40% DTI you need to focus more on earning and less on buying.

[GMalo]

If you want to own a home you need to get better jobs with documented income.

Put your nest egg in some conservative investments and let them accrue interest while you improve you finances.

There is no magic bullet to home ownership.

The simple truth is that you haven't earned a home yet.

[markjames68]

Originally Posted by ocngypz

Your debt to income ratio is too high. stick with 28/34 ratio.

Your taxes are going to increase each and every year....plan on at least 3% per year.

Then there are all the fun bills..........Home Owner's Insurance........electric, gas/oil, repairs and maintenance...........

Your income doesn't count. What's your wife's annual income?

Repairs and maintenance alone average 1-2% of the purchase price per year. For a $400,000 house that's $4-8K that OP doesn't have. In face, when you add up maintenance, oil, electric, insurance and the mortgage payment you're pretty close to 100% of OP's wife's take home pay.

This is a "house poor" train wreck waiting to happen.