I am planning on purchasing my first home, but its going to be for my mother. She lives in a small town with very affordable housing.
The place will be around $68k with 20% down payment ($13,600) which will require a loan of $54,400.
My question is: how does it looks to a lender if you are buying a lower priced home than you can afford relative to income?
Some notes about self...
- Income past three years $90k to $120K with a 'fair' credit score of 655 range...
- Affordability calculators online say with that income, $350K+ house price...
- Note: Previously self-employed, and now a salary... (3rd party verified)
What do you guys think? I assume it matters the size of the loan relative to yearly income? Better chances at a lower rate?
I will have meeting with some lenders in a few weeks, but thought I would get some insights online first. :)