Step 4: Getting a Mortgage Loan
How much of my income should I spend on housing? As a rule, your housing costs shouldn’t exceed 30% of your take-home income.
Your monthly housing payment is made up of your mortgage principle and interest, property taxes, insurance, ground lease fee and a stewardship fee and maintenance.
There’s no easy way to determine what upkeep will cost you, but most homeowners spend 1%–4% of their property’s value on maintenance every year.
Qualified land trust applicants submit a loan application and supporting financial documents (drop down with list * last three months of pay stubs * Bank statements for last two months * W-2’s for last two years) to a participating lender.
Applicants that have steady income for at least two years and a credit score of 620 are good candidates for approval. Applicants can still qualify if they have a bankruptcy or foreclosure that has been discharged for two years.