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socialfly26's avatar

What kind of income requirements and credit score do I need to buy a house?

Asked by socialfly26 (215points) January 4th, 2021

I’m looking to work towards my goal of being a homeowner. Right now my income is only $836 a month which I know isn’t enough to sustain a house. My credit score is about a 500. My question is what can I do to achieve this goal? Also what would be an ideal down payment?

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3 Answers

elbanditoroso's avatar

SO much depends on the price of the house. And the location. Housing is far, far cheaper in Arkansas than it is in California.

But no mortgage company is going to give you a loan with that credit score and that income. $836/month is just about $10000/year income, and that is before food, auto costs, insurance, utilities and a host of other stuff.

Goal 1: Make more money. You need more income.

Goal 2: Get you credit sore up to the 650–700 range at least.

Goal 3: Look for a house you can afford.

Don’t even think of #3 until you have #1 and #2 under control.

KNOWITALL's avatar

I agree with @elbanditoroso 100%. You may consider ordering a Dave Ramsey book, which tells you step by step how to gain financial security.

Also, most homeowners choose to improve their credit before buying a home because the loan rate will be better.

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