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Piddy3825 t1_j3ob654 wrote

A lot of that is contingent on where you are buying ie. purchase price and the amount you're gonna finance. Credit scores and debt ratios are also factors that lenders will consider when evaluating your application.

You should look at getting prequalified, plenty of lending institutions will do that for free. You may wanna check with your bank or credit union.


dshafik t1_j3oeo07 wrote

I think the bigger issue here is your income. $170K for a 20% down means you're buying an $850K home. Your mortgage is going to be too high.

At $70K/year you should be paying out less than $2K/month on your mortgage (1/3 income), and you're going to have a tough time financing $680K+ (fees + property taxes usually, at least) and stay under that number.

If you want to put down $170K on a $500K home, well… I wouldn't put down that much personally, but you'd be much more likely to qualify because the financed amount is within your means.

The amount you put down is a bad thing for the lender, they don't make interest on that. And it can come from anywhere (e.g. inheritance, lottery win), and doesn't in any way guarantee you will pay the amount they finance and actually make money on. The reason you even bother to put 20% down is because otherwise you have to get PMI (Private Mortgage Insurance) — if you get an FHA loan, you need to get PMI regardless.

Personally, I ended up needing to get an FHA loan because of a foreclosure in my history that happened > 5 years ago but less than 7 (IIRC, might be 3 and 5 years?), so I decided not to put down 20% as it wouldn't avoid PMI, and instead put down 10% and put the rest of my downpayment into home improvements (kitchen in particular) with the goal of earning out the other 10% in equity (between improvements, payments, and the market) within 2 years so I could refinance with a standard loan and remove the PMI. My house is way nicer than it would've been otherwise, effectively doubling my budget for improvements.


12thMemory t1_j3obiou wrote

It depends on where in western Washington you want to live and the quality of house you buy. My folks sold their home, in Renton, at the end of the summer. Interest rates were hovering around 5.5% at the time. A 20% down payment would have been $189k with an estimated payment just shy of $5k a month. They ended up taking a cash offer for $60k under asking, as it had been on the market for three months and they had already moved out of state.


forkmerunning t1_j3obxh8 wrote

When you say 'no debt' do you mean zero? Or minimal? Lenders look for debts being paid on time, over long periods. If you have no or minimal credit history, you're gonna have trouble getting a loan even with 20%+ down.

I made less than 35k a year and was 40k in debt, but I had lenders calling me to sign me up for home purchase, simply because my CC and other bills were paid on time for several years. Almost bought a house with zero down payment, but it got snatched up by an 'investor' that paid cash while my paperwork was being processed.


mikkokilla t1_j3opmvm wrote

Location. Location. Location. South of Tacoma? Probably. North of Tacoma? Not so much. Seattle? BWAHAHAHAHAHA


th3r3dp3n t1_j3oghd9 wrote

You need to get pre-approved by a lender, find out what your debt/income ratio is, and the lender will be able to show what your monthly payments are.


Cuidado_roboto t1_j3on0p9 wrote

If you make 70K, you probably take home $4400. What are you comfortable paying per month? Personally, I’d go no higher than 40% of gross monthly which would be $1800. You can afford a 400K home with an $1800/mo mortgage with an 170K downpayment. That buys a decent home where I live in rural Western Washington. Or wait for the fall of capitalism and parasitic commodification of housing!


cumulo_numbnuts t1_j3odl6e wrote

It'll get you a mobile home or condo on the $170k alone. With patience you'd be able to find a standalone home that needs some real work, but it won't be close to town. That's again without taking on any debt.

On that income and down payment I suspect you could swing $350k total, maybe $400k. That will buy you a small house in a small town here.

If by "western Washington" you really mean Seattle, that's a lot tougher. A standalone house here will min out around $500k, and condos min out around $250k. I would probably aim just a little above the bottom of the market and think about a condo around $300k.


fatmanchoo t1_j3oxq3p wrote

What's your monthly mortgage payment max? There are plenty of 500K homes in W. Washington, but a 330K loan at today's interest rates is going to leave you with a chunky monthly payment.


werd_matrix t1_j3pvh21 wrote

First time home buyers can buy a home with as little as 3.5% down. $170,000 down payment would be more than enough.


SCro00 t1_j3s3un9 wrote

I have 600+ credit score and got a home with no money down besides earnest money. Seller paid closing cost. Make $100k a year. FHA loan.


librariesarethebest t1_j3u3pwq wrote

People have posted about the financial side of things with good advice. I just wanted to add that Western Washington is quite large and there are many communities that are far less expensive than the Seattle area.


doktorhladnjak t1_j3wnxqv wrote

With an income of $70k, your mortgage should generally not be more than $2k per month (about 35% of your income).

Assuming a 30 year fixed loan at 6.5%, that translates to borrowing about $320k. With a $170k down payment that adds up to $490k. Pretty much absolute max, but could be less if you have other debts or expenses.

You can definitely find a homes in western Washington for that amount.


OceanPoet87 t1_j3xtjkf wrote

Western WA is large. What works in Mason or Lewis might not work in Clark. What works in Clark might or might not work in Whatcom or Snohomish and what works there might not pencil out for King. Which county?