Hi, I am 24 yrs old, and live in the Midwest. I graduated earlier this year and landed a job close to home. My yearly salary before taxes is $56k. I am in a situation where my dad is very ill and my family lost our house about 5 years ago to foreclosure, just before I started college. We were always poor growing up so I went to college with the intent to get a good enough job to buy my parents a house.
I would like to hear advice on if I can go about doing that, and if so how? I know financially, its a really poor choice to make at a young age and with not that great a salary but my family is getting kind of desperate as the rent prices here are ridiculous. Currently we are renting a house for $1850/mnth. It isnt even great or anything, just has enough bedrooms for my parents and little sisters.
I am currently living at home to help them pay the rent and other bills. Currently I have no savings as I am allocating any income after bills to paying off my credit cards, which I should be done paying off by December.
After December my monthly bills will be: Car Insurance: $70 Gas: $50 Gym: $20 Student Loans: $350 (start paying in December and can change the amount i have to pay) 401k: $120 Train Fare Card: $120 Rent to parents: $1100 Entertainment: $200 (includes eating out)
After taxes and before bills my monthly take home is $3000.
My dad gets disability every month that comes to about $2200.
And one of my sisters makes about $30k a year and will be able to help pay the mortgage.
With that given information, will i be able to afford buying a house? Would I even qualify for a mortgage? If so, how much would I reasonably be able to afford and what would my monthly mortgage bill look like?
I have looked at the estimators online and they say my monthly mortgage will be roughly the same as the rent bill we are paying now, is that true? that seems pretty high.
Also, does anyone know if i would be able to include my dad's disability income and my sister's income to get a higher loan?
Also, if it helps, my credit is around 720, and my dad's and sister's are about 650.
Thank you so much, any advice or help is greatly appreciated.
EDIT: To clarify, I have no savings right now, but we are planning on saving as much as we can for a down payment and for myself after December start heavily saving for emergency fund before we even apply for a mortgage. Just wondering if its financially feasible to afford a mortgage with the given situation.
Submitted October 24, 2017 at 01:30PM by macaroniboni http://ift.tt/2i1ziWN
