today we're going to take a look at this challenge to see which loan type will get us the best purchase price with a $2,000 a month budget for a home my name's miles pitcher I'm the owner of Superior lending been in the business since 2001 so my favorite question when talking with a new client is to say what are you comfortable with like the highest monthly payment that you are comfortable comfortable with in your budget because I'm not talking about what the max is that they qualify for but what they are comfortable with why is this because I don't want a client feeling house poor when they move into a home so we're going to look today at a $2,000 a bud a month budget um what can you get with that and obviously across the country though these purchase prices are going to vary on what you can get but let's look at what we can do so the first product I want to look at is an FHA loan we like FHA Loans because the rates are lower you can stretch your debt ratios on these and they do very very good with lower credit scores um so as you can see here the rate is beautiful on this to get your monthly payment under $2,000 you would be able to buy a $310,000 home right now and that's that's pretty solid by the way if your credit score is lower than 740 like all the way down to 620 even 580 we can make those work on FHA Loans but what about conventional so on conventional you need to have a good credit score we're looking at a 5% down loan here so larger down payment the interest rates around 6% right now that's going to get you a 305 purchase price and your payment would be under $2,000 now I will mention here that obvious we have not accounted for any HOA fees in here we're just looking at principal interest taxes insurance and mortgage insurance the next one's my favorite loan product of all for clients if it's a fit and that is a VA loan why because he can get with 0% down the rate is phenomenal 5.25 right now and there is no mortgage insurance therefore for the a monthly payment of under $2,000 you can get a $325,000 home the winner right there now we do have a really cool product that has a 100% forgivable Grant and So when you buy the home the down payment is given to you and it is immediately forgiven you do not have to repay this money it starts out with a higher interest rate and you can see that that gives you a monthly payment of around $2,400 but we can quickly refinance you into a lower monthly payment after we close on the loan with the Grant and so the refinance will get you down to that 2,000 a month so $300,000 purchase price is what we're looking at on there you still have to qualify for it but it's a great way of getting some free down payment money so hopefully this helps you give you give you an idea of what a $2,000 month budget um on your purchase price if you have any questions let me know we're always happy to help have a great weekend thank you