I’m 23 and have no credit but I want to buy a house….my salary is 28k gross and I would be renting to two relatives who together would contribute a total of $450 towards the mortgage…. I’m in Massachusetts btw and homes where I’m looking range from $175-275K advice?
You can’t buy anything over about 110k, assuming you could get a loan. I doubt you can.
You can only buy on your actual income, not fantasy rental income.
With an annual income of 28k, you cannot afford a house in the 175 to 275k price range. Most you could qualify for, possibly, would be 84k. Quite a bit lower than what houses cost that you have been looking at.
Also, not having any credit may work against you in getting a mortgage. You may have to establish some sort of credit for a year or 2, save up a down payment 3.5% for FHA and then try to get a mortgage.
I just don’t think you will qualify at this time.
With your income you should be looking at houses under $100K if any even exist. You will need about 20% of the purchase price as a down payment. But with no credit history I just don’t think anyone would give you a mortgage. And you can’t count rental income that might not be paid – you need to be able to afford the pymts whether you have renters or not.
You do not make enough money to qualify for a loan in that price range. Your income would limit you to a loan in the $120-140k range max and you would need a minimum of 10% down and have a good income/debt ratio,established work history and a good credit score. The income from the two relatives would not be considered as income for the loan purpose.