Relocation
Today there are many mortgage programs that will help borrowers qualify a little bit easier. This is often needed as the rates creep higher and/or as prices climb. Thorough counseling needs to occur with each one of us, since these concepts may be a bit “out of the box” for our thinking. However, they can open a home purchase option where it did not exist before or allow us to choose a more expensive home due to our family’s needs. In any case, these two ideas are ones that may interest you now or in the future.
The following example outlines how a buyer would comfortably qualify for a $350,000 home with $10,800 less income than usual. It is proposed that the buyer add the $7,500 cost of the buy down to the purchase price and ask that the seller credit them those funds in the escrow.
| Purchase price: | $350,000 | |
| Down payment: | $35,000 | |
| Financing Breakdown: | ||
| $ 262.50 | 9% | $35,000 second |
| 1,769.79 | 6.5% | 280,000 first 30 yr. fixed |
| 320.83 | Taxes | |
| 70.00 | Insurance | |
| $2,423.12 | Total payment | |
| ($300 / $6,900 = 35.1% / 40.0% debt-to-income ratios) |
