I have excellent credit. I am getting married. In my personal life, I want to purchase a home - and not put my to-be wife through any heartache - so we’re going conventional - as in mortgage loan.
On the other hand, I am also starting up my REI operation - and I PLAN to look mainly in the direction of owner financing and/or construction loans (learning more on them currently).
But I do not want to tie up my credit with my personal life and not have any “left over” for purchasing prop’s for REI’ing on the biz side of things.
You don’t “tie up” credit, T. If you’ve got good credit, you’ll continue to have good credit, so long as you a) pay your bills on time, b) don’t let you debt to income (DTI) ratio get too high (you do that by borrowing money for things that don’t make any $$$, like cars) and c) don’t let your revolving credit (credit cards, etc) remain at more than 50% of the limit too long.
There will always be things that make your credit jump up or down, like too many credit pulls in a given time, or recent activity (new loans), but generally, more credit leads to better credit score.
If I purchase a home with fiance. I’ll have that house as a debt on my credit. I know a home increases in value, but won’t having a house on my credit slow me down a little in terms of qualifying for future mortgages, at least temporarily (i.e. 6 mos to a year)?
Congratulations on your up coming marriage and your first new home.
Apply all the same principles to purchasing your home as you would an investment.
The first good place to start is HUD properties. Owner occupied get the first 10 day opportunity to buy, a BIG advantage. Find a good Realtor that can get you in them and submit your bid. HUD looks at offers at 91% of appraised value or more.
