The Pledged Asset Mortgage allows a prospective home buyer who has sufficient income to meet monthly payments toward a home, but who cannot save the necessary down payment, to borrow up to 100 percent of the sales price when a family member pledges a stable financial asset equal to 30 percent of the loan amount.
Thus we consider the main factors that will weigh into how much home you can ultimately afford, but virtually affording a home involves more than having enough money to cover the down payment, closing costs and monthly mortgage obligations. Maintaining the overall condition of the home while you live in it and the repairs go beyond the monthly mortgage payments. You will have to pay for utilities and heat. If you are required to become a member of a neighborhood homeowner association, the dues or periodic assessments payable to the association may be a significant expense item. So, when determining how much home you can afford, make allowances for such expenditures.
