A question by alyssa : I currently live in Southern California and would like to move to Tennessee in a few years. If I save $10,000 as a down payment for the house and maintain good credit, is it possibly to buy a house for the price of $170,000? (Did not include other savings for other important life things)?
Answers
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Your down payment amount should be almost twice that if you want to secure a decent mortgage deal–but if you are getting funds through the VA or the FHA, you might be able to get away with that lower amount.
Can you afford it? Well, only you know that. Search online for a mortgage calculator and see what your basic monthly payment would be at the numbers you quoted. If it’s affordable, then you know the answer. Don’t forget to add in amounts for utilities, taxes, insurance and if you go with a federal mortgage program, PMI–it will be required.
Vaor
“lol no You need a deposit of at least 10% of the property value; you’re falling well short.”
Dasunshine
“Since you never stated how much you earn, your debt ratio and other liabilities the question is impossible to answer.”
William
“Can you buy a house for $170K in Tennessee? Yes, Will a bank give you a mortgage with only $10K down payment? Doubtful, but maybe. You’d need income around 55K a year or more to afford a 170K house, and money for closing costs.”
Anonymous
“You can borrow about 3x what you make So if you make about $50K, you need a 34,000 dollar down payment to avoid PMI.”
Anonymous
” What is your income? Also, wages tend to be lower outside of California; especially in the “South”.”
Anonymous