How Much Can I Qualify For?

When looking to buy a new home, the first question people ask is "how much home can we buy?" 

Generally speaking, you can usually qualify for a loan of two to two-and-a-half times your household's annual income. For example, if you make $40,000 a year, you can usually qualify for a loan of $80,000 to $100,000.

Of course many other factors are used to determine the size of the loan you are eligible for. Your Loan Officer generally prefers that your housing expenses (mortgage, taxes, insurance and special assessments) do not exceed 25% of your gross monthly income. Your other financial obligations should not exceed more than 36% of your gross monthly income.

There are many different types of loans available. Which one you select can also effect how much you qualify for. Your Loan Officer will verify your credit and employment history before an exact amount can be determined.