Question on how much loan I can afford

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irvineguy949

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I am looking for a home (Portola Springs, Cypress Village, possibly Baker Ranch).  Looking in the $600K ~ $625K range. 

Income: $85K
Down payment: $50K
Credit score: 800+
Single with no debt

Do you guys think I can get approved with a 80/10/10 loan?  If not, what would be my other options?

Thanks!  :)
 
irvineguy949 said:
I am looking for a home (Portola Springs, Cypress Village, possibly Baker Ranch).  Looking in the $600K ~ $625K range. 

Income: $85K
Down payment: $50K
Credit score: 800+
Single with no debt

Do you guys think I can get approved with a 80/10/10 loan?  If not, what would be my other options?

Thanks!  :)
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Well...you don't have enough DP for an 80/10/10. 

Based upon a mortgage calculator, a $490,000 first loan at 4% and $65,000 will result in a monthly payment of $2,490.34 ($2,100.63+$389.71).  36% of your income gets to around $2550...so you're close.
 
I would save enough money for 20% down with enough reserves for rainy day stuff.  My rec is to not buy at your current financial situation.  JMHO.
 
OCgasman said:
I would save enough money for 20% down with enough reserves for rainy day stuff.  My rec is to not buy at your current financial situation.  JMHO.
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I agree with OCgasman on this one.  Save enough for 20 down and atleast a year of reserves.
 
OCgasman said:
I would save enough money for 20% down with enough reserves for rainy day stuff.  My rec is to not buy at your current financial situation.  JMHO.
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the only problem is the appreciation could outpace the savings. but in general would agree not to buy with those financials. seems like too much of a stretch but only you know how much you are willing to sacrifice.
 
Agree waiting to save the 20% may not work, even if prices just go up modestly. I would still buy, just something much cheaper/smaller, perhaps right around ~$500k.
 
Pluto3D said:
Agree waiting to save the 20% may not work, even if prices just go up modestly. I would still buy, just something much cheaper/smaller, perhaps right around ~$500k.
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Agreed.  I would buy something a little cheaper.  Waiting a tough game right now with prices going up and interest rates still extremely low.
 
Yeah... I hate 20% down.

Go with cheaper, you're single, you can live in a smaller place for now... or buy outside of Irvine, I don't think you are using the schools*.

*Not baiting OS, jus' sayin'.
 
I agree with the above posts.

There are some townhomes in Baker Ranch in the 400-500K range. We did not check it out, but it sounded like those were selling quick. You may want to check it out.

My 2 cents: keep a savings goal of 20% down payment. Once you reach that goal, start shopping for townhomes / condos outside Irvine and away from the Beaches. This is what I would do, if I were not married :P
 
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