Do you want to become an owner with net monthly income of 2000 USD? Find out what are the criteria studied by the bank to accept your mortgage application.
If having a permanent employment contract is a prerequisite for obtaining a mortgage, this is not the only element taken into account by the bank. The amount that can be borrowed also depends on the level of income and the monthly expenses.
What borrowing capacity with $ 2,000 net per month?
To know the amount of your future mortgage, it is imperative to calculate your debt ratio. Banks generally accept a maximum debt ratio of 33%. For a long-term loan of 30 years, it is thus possible to ensure the payment of a monthly payment of 660 USD.
In addition to the debt ratio, the lender will want to know the borrower’s remaining livelihood, which is the amount he has left to cover his daily expenses. The existence of a co-borrower and the number of dependent children will also affect the amount of the loan.
The following table includes credit charges such as loan insurance and the rate:
|Duration of credit||Maximum amount|
|15 years||107 200 USD|
|20 years||135 400 USD|
|25 years||USD 158,600|
Thus, over 25 years and with a net monthly income of 2,000 USD, it is for example possible to borrow 158,600 USD, borrower insurance and rates included.
The tips for getting a mortgage with a low salary
People with low incomes may use some tips to convince the bank to respond favorably to their request. First, it is important to present a good record that can attest to its ability to repay.
Secondly, an unstable job situation may cast doubt on the banking organization. It is preferable that at least one of the two spouses has a CDI-type contract. Savings or personal contributions will also benefit the applicants.
Finally, some aid schemes facilitate access to mortgage loans. These include the zero interest loan, a loan agreement that is not subject to any fees or interest, or the loan Action Housing for employees who wish to become owners.
Why do a mortgage simulation?
Each credit application is subject to a feasibility study. In some cases, borrowers who already have several credits in repayment can not obtain financing on pain of passing the 33% threshold. The decision of the bank whether or not to grant a mortgage therefore depends on many parameters.
To determine exactly how much you can borrow by earning $ 2,000 in net income per month, it is advisable to do a credit simulation online. All you need to do is complete a form in less than 2 minutes.