Mortgage question?

Question

Will a lending company allow me and fiance to make payments that are 50% of our income (as opposed to the recommended 30% of income?). We have ZERO debt and ZERO financial obligations.

Answer 1

it is possible

Answer 2

It is possible, but not at the terms that would have been available a year ago.  In addition, there are other considerations that the lender would review, such as job history, probability of income to increase, other assets, etc.

Plus, what would happen if one of yo lost job, etc., in light of number of recent lay offs.

Answer 3

I certainly hope not.  Congratulations on being smart enough to be debt free.  But even being debt free it would be foolish to take on a loan with such a high payment.  A mortgage payment should never be more than 25% of your take home pay for the mortgage only (principal and interest) or 33% for principal, interest, taxes, and insurance.    You need to have a buffer to allow you to actually have a life as well as a mortgage.  What if you had a financial setback, like a layoff, or an illness and one of you couldn't work for an extended period of time?  If your payment is 50% of your income for the two of you, what would happen then?  It is better to get something a bit smaller with a smaller mortgage that you can pay off quickly and then trade up for a bigger house.

Answer 4

This is a possibility, but only if your profession will allow you to earn more in the short future.

Answer 5

Even if you can, you shouldn't.