As most of you know, I've got a major woody for the 6 speed. I want it really bad, but I also want to buy a condo. The problem is that I don't have much saved for a down payment and my income is marginal for affording a place that I want to live in. Orange County is a very expensive place when it comes to housing. Qualifying for a mortgate means meeting certain financial ratios. Your housing cost can't exceed a certain % of your monthly income, say 33%. Your total debt service including housing can't exceed another percentage, say 40%. Even if you have zero debt, they typically won't let your housing cost go up to the 40% in this example. So someone making 4k/mo could spend $280/mo ($4000 x 7%) on other debts.

Once my 2001 is paid off, April at the current rate, I will be debt free. I've never carried credit card debts. As long as a new car loan doesn't exceed that 7% it shouldn't hurt my qualifying for a mortgage.

Looking at my credit union's web site, they offer 60 month loans for amounts over $10,000. At 6.25%, their best rate, its only $1.95/mo per $100 borrowed. That's $234/mo for $12,000.

Wooo Hoooo!

 

wow, well i hope it works I'm trying to figure out if i want to mod the hell out my car or start saving for the lancer evoVII. It depends on a bunch of things i guess......Keep updated on your situation.

 

um i have no clue what u just said. But if it means you can get the 6mt u wanted. then good for you

 

Definitely buy the condo.
Any money invested in the 6mt will be worth a fraction in 7 or 8 years.
Any money invested in the condo will likely be worth a multiple in 7 or 8 years.

Also, qualifying for a car loan is a lot easier than qualifying for a home loan, so hold off on the car to keep the back-end (40% limit) number down.
Once you close escrow on the condo, then buy the car because having the mortgage will help in buying a car whereas having a car loan will hurt when going for a mortgage.

Just my opinion, and I bought both a house and a car in September.

 

What he said.

I used to do Mortgage re-financing applications on the side and that is entirely true.
Once they’re done looking at you under the magnifying glass for the home mortgage, your mailbox will be overflowing with all kinds of finance offers when you are in the new house.

Shawn S

 

First thing. If you want a place when you have not alot of down, contact a loan broker (go with a Bank first liek Bank of America) and just ask about a FHA loan. They require a 3-5% down but you will have PMI insurance. But at least you get into a place and their lending is alot less stringent.

Unless you can go VA with no money down. But if you can't afford a FHA loan, then you have a long way to go..

If you go with a regular loan, e-mail me. I am not a loan officer but my best friend is one in SF. She usually charges 1 point and will not cheat you.