How To Make Big Money Buying and Selling Real Estate
TABLE OF CONTENTS
INTRODUCTION 3
A WORD ABOUT HUD HOMES 5
OWNING A HOME OF YOUR OWN 6
HOW MUCH HOME CAN YOU AFFORD 6
MORTGAGE PAYMENT CALCULATOR 8
THERE'S A HUD HOME WITH YOUR NAME ON IT 10
BEGINNING TO MAKE IT ON YOUR OWN 11
DIFFERENT LOANS FOR DIFFERENT HOME BUYERS 12
HUD BRINGS YOUR UP-FRONT COSTS DOWN 14
CHECKING IT OUT BEFORE YOU CHECK IN 15
THE FINISH LINE 15
QUESTIONS AND ANSWERS ABOUT HUD HOMES 16
A WORD ABOUT LEAD BASED PAINT 18
TERMS YOU NEED TO KNOW 18
HOW MUCH HOME CAN YOU AFFORD?
Before you start shopping for a home, you need to know what kind of home to shop for. To determine that, of course, you've got to figure out how much you can afford to pay each month.
Fortunately, there's a pretty simple formula for coming up with this number. It's the Federal Housing Administration (FHA) formula that many mortgage lenders use. The FHA has found that most people can afford to budget 29% of their gross monthly income to housing expenses, depending on total debt. Buyers with no debt can budget as much as 41% of monthly income to housing.
No need to reach for your calculator-we've done the math for you. The two charts on the opposite page should tell you everything you need to know.
The first chart tells you how much 29% of your monthly income is. Find your annual income, or a figure close to it, in the column at the left. Then read across to find out how much your monthly gross income is, and finally, what 29% of that figure amounts to. This is approximately how much you can spend on total housing costs each month.
The second chart tells you how much your monthly mortgage might be based on a home's selling price. Remember to keep in mind that the monthly figure from this second chart is based on a 30-year fixed mortgage and includes monthly principal and interest payments only. Taxes and
insurance - which vary from community to community - are not included.
So if 29% of your gross income is, say, $604, that doesn't mean you can pay a $604-per-month mortgage. You need to look at a mortgage somewhat below that, to leave room for taxes and insurance. Be sure to ask your lender to help you estimate how much your total costs will be.
Annual Monthly 29%
Gross Gross of Gross
Income Income Income
$15,000 $1,250 $363
20,000 1,667 483
25,000 2,083 604
30,000 2,500 725
35,000 2,917 846
40,000 3,333 967
45,000 3,750 1,088
50,000 4,167 1,208
Notice: This is just a portion of this amazing how-to-book. To order the full copy of How To Make Money Buying and Selling Real Estate (21 Pages) apply here
Any questions or concerns regarding this site please contact
