Your monthly cost to buy a house can be lower than the cost to rent. With sufficient Social Security income and good credit, you may qualify to buy a house. Yes, you can buy a house on fixed income Social Security alone in 2022, and here is how.
Start with good credit. You will need a minimum credit score in the high 600's but the better credit gets better interest rates are given to scores of over 720. Next, are your ratios. This is your debt to income ratio. Your total debt reported to credit agencies plus your mortgage, insurance, and taxes can not generally exceed 45% of your gross income.
Sample Social Security Income
This assumes that a married couple at full retirement age is both drawing Social Security retirement benefits. One individual receives $1,450 per month and the other receives $2,500 per month. The combined income is $3,900 per month. This would be the gross monthly income. Any income from other sources such as dividends, interest, etc. would be added to your Social Security payments.
With an income of $3,900 per month, you can spend as much as $1,700 per month on your mortgage payment and debt payments. Assuming that you have only a $100 per month credit card payment, you can spend up to about $1,600 on housing costs.
Let's look at a sample mortgage payment for a house that can be purchased for $112,950. Another assumption made here is that you qualify for a USDA home loan which permits 100% financing.
Compare to rent
Yes, you can buy a house for less than you may pay for rent when you buy a house on Social Security alone in 2022.
We can help you
All of this is leading up to the fact that Logan & Anderson, Gulf Coastal Realtors can help you find that perfect property. We know the mortgage programs and can recommend lenders who can work with you. We can help you ahead of completing that mortgage application. If you have never been to the Mississippi Gulf Coast, we can help you understand the options available to you based on your limited income.
Call or message us at Logan & Anderson LLC.com, we can tell you anything you want to know about the area. Did I forget to tell you about the very large number of retirees in this area? You will not have trouble creating a network of friends on your own. A good option is to go through the budget, look at our website and contact us. Doing some research is always a great place to start.
Buy a house on Social Security alone in 2022 - Read our references below:
References
RetireCoast.com is a great place to read about the area and retirement.
LoganAndersonLLC.com is another great place to learn about the area and to see houses for sale and rent
Why I decided to retire in Ocean Springs, Mississippi an article about the area
Why you need to retire on the Mississippi Gulf Coast yet another article about the area
22 Things to do on the Mississippi Gulf Coast go here to see what the Gulf Coast has to offer
Serious about buying a home? Getting pre-qualified or losing out a good place to start understanding credit
