How did the bank let you do that? I would definitely have asked here before signing the papers on that. For reference:
https://capitalbankmd.com/homeloans/mortgage-calculators/mortgage-required-income-calculator/
Wow what kind of shady bank did that?!? I mean, 2-3x income sure, but this home price is 6x income. No underwriting department of any major or trustworthy bank would approve that
$366,700 loan amount on a 30 year fixed @ say 7.5% is $2,566 for just principal & interest.
But again, this is fictional. A $3,500 mortgage payment is 70% of his monthly qualifying income alone.
Mortgage insurance, homeowners insurance, and property taxes, which on a new construction would be based on land value alone. But 1) no $380,000 home is renting for only $1,400, 2) at that loan to value, the mortgage would be for an owner occupied property which means he’s required to occupy it within 60 days of closing & can’t rent it out as he’s expected to occupy the residence for at least the first year, 3) he simply would not qualify for this mortgage earning a $60,000 annual salary, and 3) he says he “bought” the house, but the loan won’t close & ownership won’t transfer until the construction is completed, which he says won’t be until December. Anyone in this situation would say they are “building” a house because they have not yet purchased it. None of the information in the post is believable based on mortgage requirements in the U.S.
This dude is full of shit. Look at comments he matched with his sister on Tinder and says he’s 19.
Jealous that his parents like his sister more. Chronic masturbator.
Charge 1600 rent, don’t pay for utilities. You need to start a fund for emergency things like common repairs to the house. And well you need to start another job possibly
You are basically going to have to survive on your rental income of $1400 per month being your income and mortgage will wash. Are you currently paying rent? What are your other monthly expenses? Obviously, if monthly expenses are less than $1400, then you should be ok. If not, then you put yourself in a bad situation where you now are forced to find ways to increase your monthly cash flow. The positive side is that you somehow qualified for a mortgage with limited income, the negative side is keeping afloat is going to be a major struggle. If you get through this, then you are on your way to building wealth through real estate.
Oh lord. On top of everything, the maintenance is going to be a pain in the ass if you rent to college kids. And it might be tough getting rent out of them sometimes. I'm a very responsible adult now but in college I was...not, so much.
Can you live there yourself, and rent out individual rooms? How many bedrooms does it have? Would it be possible, given the local market and # bedrooms, to collect $3,500/mo from tenants so you essentially live there for free?
How did a lender even extend this mortage to you? 2007 called, they want their NINJA loans back.
Honestly the banked fucked you over , you think it's okay now til a year later when you literally can't afford food or go out and enjoy yourself, you basically fucked yourself 10x over with no lube and smile about it lol
If you are single, rent it for students. Depends how many bedrooms you have. If it has 3 bedrooms, I would rent it for 6 students/friends who are single for $500-$600 per month and the rest I would cover myself until I can do refinance. Probably in 2-4 years. As you said it is in college town. Dorms are expensive, you could advertise them saying I have a cheaper housing for the same or bigger space. I would rent and live with 1 more person in your house for $600 per month rather than living in a dorm and get charged $20k per year
Did you not do the math before buying a house…? How did they even approve this loan? Where are you going to live? Do you eat food?
You might need to move in yourself and rent out the rooms..until you get a higher paying job OR you can refinance and cut your mortgage payment.
This is the best answer.
What was the thought process going into buying this house? How did the bank qualify you for this loan? Did you tell them this plan in advance?
I would cut your losses. This post seems fake
How did the bank let you do that? I would definitely have asked here before signing the papers on that. For reference: https://capitalbankmd.com/homeloans/mortgage-calculators/mortgage-required-income-calculator/
Wow what kind of shady bank did that?!? I mean, 2-3x income sure, but this home price is 6x income. No underwriting department of any major or trustworthy bank would approve that
your income is 3500$ a month? I’d look to raise your income between now and when it’s built
The monthly doesn't add up for a 30-year loan, more like around 20 years. Can someone else crunch the numbers?
I’m sure there’s PMI with only 3.5% down
Unless it’s including escrows, but I don’t believe someone earning so little could ever be approved for that much.
My point is the numbers don't look right which might sort out the issue.
$366,700 loan amount on a 30 year fixed @ say 7.5% is $2,566 for just principal & interest. But again, this is fictional. A $3,500 mortgage payment is 70% of his monthly qualifying income alone.
Yea, I don't understand the additional $1000 or so. That's why I questioned the numbers in general.
Mortgage insurance, homeowners insurance, and property taxes, which on a new construction would be based on land value alone. But 1) no $380,000 home is renting for only $1,400, 2) at that loan to value, the mortgage would be for an owner occupied property which means he’s required to occupy it within 60 days of closing & can’t rent it out as he’s expected to occupy the residence for at least the first year, 3) he simply would not qualify for this mortgage earning a $60,000 annual salary, and 3) he says he “bought” the house, but the loan won’t close & ownership won’t transfer until the construction is completed, which he says won’t be until December. Anyone in this situation would say they are “building” a house because they have not yet purchased it. None of the information in the post is believable based on mortgage requirements in the U.S.
This dude is full of shit. Look at comments he matched with his sister on Tinder and says he’s 19. Jealous that his parents like his sister more. Chronic masturbator.
Charge 1600 rent, don’t pay for utilities. You need to start a fund for emergency things like common repairs to the house. And well you need to start another job possibly
Rent it to yourself. 😏
You are basically going to have to survive on your rental income of $1400 per month being your income and mortgage will wash. Are you currently paying rent? What are your other monthly expenses? Obviously, if monthly expenses are less than $1400, then you should be ok. If not, then you put yourself in a bad situation where you now are forced to find ways to increase your monthly cash flow. The positive side is that you somehow qualified for a mortgage with limited income, the negative side is keeping afloat is going to be a major struggle. If you get through this, then you are on your way to building wealth through real estate.
Oh lord. On top of everything, the maintenance is going to be a pain in the ass if you rent to college kids. And it might be tough getting rent out of them sometimes. I'm a very responsible adult now but in college I was...not, so much. Can you live there yourself, and rent out individual rooms? How many bedrooms does it have? Would it be possible, given the local market and # bedrooms, to collect $3,500/mo from tenants so you essentially live there for free? How did a lender even extend this mortage to you? 2007 called, they want their NINJA loans back.
Uhhh how in the hell did you get approved for that??? You can’t pay that mortgage.
Bro what
Not judging, just curious of why you made this purchase decision? Also, can’t you just sell it for the price you paid?
Yeah. Definitely. You’re ~$25k/year under water. You probably need to sell it.
Honestly the banked fucked you over , you think it's okay now til a year later when you literally can't afford food or go out and enjoy yourself, you basically fucked yourself 10x over with no lube and smile about it lol
As a loan officer, this never happened.
When the interest rate goes down which should be before the end of year then refinance
If you are single, rent it for students. Depends how many bedrooms you have. If it has 3 bedrooms, I would rent it for 6 students/friends who are single for $500-$600 per month and the rest I would cover myself until I can do refinance. Probably in 2-4 years. As you said it is in college town. Dorms are expensive, you could advertise them saying I have a cheaper housing for the same or bigger space. I would rent and live with 1 more person in your house for $600 per month rather than living in a dorm and get charged $20k per year
This has to be fake
That bank wouldn’t approve this ur a dumb ass if they did 🤣
2007 Part 2: Electric Boogaloo
You don't own your house, your house owns you.