I’ve been paying off student loans and finally will be in a great position to buy first house. Wife stays at home and I have two kids with one on the way so need a 4-2.5. Average home cost in good school district in my area is about $275-300k. My gross income is ~$130k a year but likely rising the next couple of years and plateauing around $150k if I stay at same position. I have no debt except about $20k in student loan payments that will be gone in next few months. Own a few cars worth in the $15-20k range but no other major assets. Good savings with down payment of 30k.
Renting currently and DTI is around 10% with my rent payment included. I am comfortable going up to DTI of 25% in my current situation but have lender trying to sell me being pre-approved for houses that would take DTI up to 35% or more. Housing prices are definitely going up in this area. A friend built a house a few years ago for $270k and after four years was appraising for $320’s. I feel like I should get in the housing market now with interest rates being so low and housing market booming, just not sure of what guideline should be on DTI for first house— I’m hoping to stay in it at least 7-10 years. We are pretty frugal people so our house will likely be our only major purchase the next few years and would love to pay it off early. Even considering a 15 yr mortgage. Thanks for all advice.
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source https://www.reddit.com/r/RealEstate/comments/ewhs6k/first_time_buyer_whats_a_reasonable_dti_for_first/
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