How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Richard Your Own Question
Richard, Tax Attorney
Category: Tax
Satisfied Customers: 54850
Experience:  29 years of experience as a tax, real estate, and business attorney.
Type Your Tax Question Here...
Richard is online now
A new question is answered every 9 seconds

Hi. You answered a mortgage question for me before. I have

This answer was rated:

Hi. You answered a mortgage question for me before. I have another one and wanted to come back to you. I'm trying to find out if I can qualify for a $348,000 house. The mortgage person I have been working with seems to think so but I think once it gets to the underwriters it's not going to be right.
My GMI is $8666.00
Car Payment is $270
Student loans are $530
Credit Card minimums are $450
I have $22,500 for DP and closing
Owner will give $5,000 towards closing
Welcome! My goal is to do my very best to understand your situation and to provide a full and complete answer for you.

Good evening. The basic guidelines for qualification for determining the highest payment you could qualify for based on credit rating are as follows:

Medium Credit
The lesser of
28.000 % of gross income or
36.000 % of gross income less fixed monthly expenses

Good Credit
The lesser of
36.000 % of gross income or
42.000 % of gross income less fixed monthly expenses

So if you are trying to buy a $348,000 house with a downpayment of $22,500, you will be financing approximately $325,500.

At 5% interest rate with a 20 year amortization, your mortgage payment would be $1744.67/month. If your GMI is $8666 and your credit is good, 36% of your GMI is $3119.76; If your credit is medium, 28% of your GMI is $2426.48. I don't know enough of your fixed monthly expenses, but yours seem minimal so based on what I'm seeing, you should not have a problem qualifying for this mortgage.

Thank you so much for allowing me to help you with your questions. I have done my best to provide information which will be helpful to you. If I have not fully addressed your questions or if you have any follow up questions, or if I have misinterpreted your questions in any way, please do not rate me yet, but simply ask a follow up question without rating so I can provide you with a fully satisfactory answer. If I have fully answered your question(s) to your satisfaction, I would appreciate you rating my service with 3, 4, or 5 faces/stars so I can receive credit for helping you today. I thank you in advance for taking the time to provide me a positive rating!
Customer: replied 3 years ago.
So I think you read my question a little wrong. I will be putting down 5% for the down payment. Right now mortgage rates are 4.5%. Since I'm only putting down 5% there will be PMI. So when they are working to qualify that ratio, won't the have to take PMI, real estate tax and Homeowners insurance into consideration since I will be paying that to the bank? Also, the rest of the money I have saved would go towards closing cost. If I don't have enough cash at closing I'm assuming that would just automatically keep me from being able to close.
Thanks for your response. When I plug your information (including the 5% downpayment, PMI Property Tax, and insurance) into my mortgage qualification calculator, at a medium credit you can qualify for a 268,657.88 mortgage and with good credit you can qualify for a $347,103.02 mortgage ($365,371.60 home price). So, as long as you have good credit, you should qualify!
Richard and other Tax Specialists are ready to help you
Thank you so much for the positive rating! I appreciate having had the opportunity to serve you! If I can be of assistance to you in the future, just look me up and I will be happy to help! For easy access, my bookmark is: