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by horsawlarway 2723 days ago
If you can't get a 300k loan with 70k income there's something else going on.

Either you have no down payment, you have a large pre-existing debt, or you have some other monthly cash drain.

at 70k annually you make ~5.8k a month.

36% debt to income ratio is normally acceptable, so you can afford 5.8 * .36 = 2.08k a month in payments.

That's a 400k loan at 4.5% interest with a 30 year term.

To be safe, and include insurance, taxes, other - you should be able to get a loan for 350k fairly easily.

That you're capped at 175 implies you have some other form of monthly debt in the $1100 range. Child support? College loans? Other?

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I'll edit this to add: I don't personally recommend taking the maximum loan you qualify for. It's a good way hamstring your ability to continue to save and invest, and it makes it more likely that an abrupt job loss or change of financial circumstances puts you in a bad spot.

1 comments

~5.8k? Maybe pretax, my month to month is more like 3.5k after taxes, insurance, 401k, and other withholdings. I've paid off my CC debt, no student loans, no alimony or child support. I have a car loan of about $500 a month for $20k that I am currently aggressively paying off @ $1000 a month. But what I was approved for was before I got the car. I do not have a down payment though, the rent here takes up half my pay check.
Mortgages are usually based on gross income not net income.