What can I do to afford it (insurance, loan, property tax)

[darrell2525]

The house I want cost 172k.

My gross monthly income is $5232. According to DTI (29/41 %) calculations for a FHA loan, I can qualify for PITI payments of $1500 per month. My recurring debt is low which sums to $768 per month. I am hoping for a interest of less than 6.50% on the FHA mortage loan.

Question:

1. Will my PITI monthly payments on a 172k mortage loan (30 yr fix) be $1500 month or less?

2. Do I need to save and put about 15k down to reduce the loan amount so I can afford the house?

I am using the 1% rule and it calculates to $1700 for that house, and my budget can not afford that. The max I can pay for a PITI is $1400 a month.

3. What can I do to afford the house I want?

4. Do I need to find a cheaper house if I want to buy a house now where the PITI payments are $1400?

Thank all of you for the help.

[CouponJack]

How much do you have saved for a down payment and emergency fund right now?

[Fnix]

Ummm with that much money a month you can more then afford the mortgage.

[renriq02]

First your rate for FHA shouldn't be higher than 6% period.
You can get it as low as 5.5% depending on certain factors of your credit criteria (not score)

172k @ 30yrs fixed 6% = 1031.23 + 71.67 (MIP payment) = $1102.90

This leaves you approximately 300 for property taxes, homeowner's(hazard) insurance, and any homeowner association dues.

[redpanda]

That seems like more than enough income to handle a mortgage that small. Good luck to you!