Buying a Home with LOW Income (2019 Edition!)

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Here’s the Video Transcript:

in this episode of the mortgage minute I'm gonna tell you how to qualify and buy a house with flow income coming up first off my name is Matthew Twitter Ellie and I'm a mortgage loan officer in California Arizona and Texas and if you like the antastic content like this please consider subscribing now let's get into it so the first thing you're going to want to have if you have low income if you're gonna qualify for a house is you're gonna want to have acceptable credit the reason you're going to want to have acceptable credit if you have low income is you're gonna want to be able to qualify for the lowest interest rate possible and you're gonna want to be able to qualify for the lowest downpayment possible okay now the lowest interest rate possible that'll allow you to have the lowest payment possible in relation to your loan amount okay now here's a tip for you a lot of people don't know in the mortgage industry what's considered you know acceptable or or or good pretty good credit and you really 660 is 680 is the range you're gonna want to be in minimum in order to be in spitting distance of a prime rate if you don't have credit here's what I want you to do I would stop this video right now and I would go apply for a discovered secured card it's the best secured card I can find with no fees and you even get one percent cash back and no Discover doesn't pay me to say this paid and way too small for them step number two you're gonna want to have your own down payment now yes there are ways of getting into a house with $0 down but here's the problem with getting into a house with $0 down is you are not going to qualify for the best interest rates and that is going to limit your buying power also you're limiting yourself on your debt to income ratio because these down payment assistance programs have lower debt to income ratio ceilings so that also limits your buying power so there are two things you're going to want to take into consideration and that's why I recommend if you have low income your definitely gonna want to have your own down payment step 3 the next thing you're gonna want to do is you are going to want to minimize your monthly obligations and what do I mean by that well me is the lender what I'm going to do is I'm gonna take all of your income and I'm gonna add it all together and get a total then I'm gonna take your minimum monthly obligations per your credit report add them all together and get a total subtract that number from your total income number and that's your total qualifying income so minimizing your monthly obligations as per your credit report that's gonna allow you to qualify for the most amount of money okay now here's a tip for you if you have really good credit there's a chance you could open a credit card at 0% interest for an extended period of time I've seen them as long as 18 months and if you're disciplined enough where you can pay that debt off in 18 months you now have a 0% interest loan and you will almost certainly have lowered your monthly obligations substantially thank you everyone for watching I really appreciate it if you enjoyed this episode please don't forget to like subscribe share this video with your friends I do appreciate it everyone have a fantastic day peace

Buying a Home with LOW Income (2019 Edition!)

License: Creative Commons