I want to buy my first home, which I also plan on being my first investment. Would I have a really hard time qualifying for a loan with a new job that will have about a $70,000/yr income and a middle score of a little over 600? 100% financing.
Purchase a duplex using an FHA loan. Live on one side; rent on the other. For 100% financing you need some seller assistance and you need to be credit approved by October 1st. Hope this helps.
Why October 1st? What’s happening then?
seller financed down payment assistance is going away on October 1st. In fact you have you have to be credit approved by October 1st.
Christopher,
Does this only apply for FHA? Can you still get sellers to carry a 2nd to buy an investment property (SFH or multi) using other loans?
The rule only applies to FHA.
Hello Shaun,
There is still a 100% financing program available but it is not available in all areas. If you want to send the zip code, or zipcodes, where you are looking I can tell you if it would fit.
With My Best,
Mike
Mike,
I assume you are talking about the USDA loan. Which is smart thinking on your part however I believe that the 70k income is too high for that program.
Hello Chris,
Thanks for the kind words, I was thinking about the USDA product. I like letting folks know about it. In some areas the income limit can work with $70K, we have even worked successfully with higher incomes. For example, in my area of Southern NJ, a one person household max is $64,000. But when you get into two person households it hits $73,250. It is not always a viable option but worth checking as it is a pretty nice program if the situation fits. The 100% financing is an attractive feature, and what most folks lock in on, but another strong advantage is no mortage insurance. Saves the borrower money in insurance costs over other loan programs that require mortgage insurance. Your right, though, in most eligible areas the $70K income would be too high and it is a strictly primary owner occupied product so it does not have much application in investment circles.
I am sure you know your way around the USDA site but for those that might read through the postings and have an interest investigating it further I included the link.
http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do
There are two things to check, eligible geographic area and eligible income. The left hand side will list “Property Eligibility” and “Income Eligibility” and take you to the corresponding pages. When checking property eligibilty you can input the property address, or, select the state from the displayed map and then select the county. Ineligible areas will usually show up in the dark orange areas. When checking income eligibility, you first select the state and then county. You will then be asked a series of questions about the composition of the household and the amount of income you earn. Your income will then be identified as eligible or ineligible per the area’s maximum allowable income limits. The notification will show what the income limits are for your size household in that particular county.
I hope this helps folks discover a possible alternative.
With My Best,
Mike
For JAAMJK & christopher w - and hello to you both:
For clarification purposes only:
JAAMJK, are you saying that the USDA Loan Program could work for Shaun’s criteria - purchasing his first home which also being his first investment w/100% investment?
christopher w & JAAMJK: would the USDA Loan Program work by purchasing a duplex, live on one side, rent out on the OTHER side? Is this possible?