Heres the deal. I make $54K/year and my credit score is around 730s. I want to buy a house in my area multi-family would be best buy a condo will due. What are my options, would it be possible to find a private invester to pick up a percentage of the cost for the same(or more) return when it’s sold?
Want to get first house, possibly outside help for investment?
I am not quite sure that I am understanding your question.
If you are wondering about financing possibilities…your credit score will allow you to get just about any type of loan.
I do not understand the second part about investors buying it back. ???
Well I was talking to some friends and they said I don’t make enough to get a $200K loan, my debt/income ratio is around 35/55 and that’s to high right? My question was more geared toward not being able to get a loan for that amount alone and if an investor would help pay for some of it.
Oh, I’m looking for 0 down too.
well you can always go stated for 106% financing.
How about a 2 unit owner occupied with no money down…
You can be approved in our automated underwriting system with up to about 49% dti and sometimes higher. Using a non profit gift for the dpa.
Loan amt could not exceed $190,000 or so depending on what state you live in. You do have options. Don’t rule this out.
I also think that you do not need a private investor.
You have the score…and we have the technology
Do you own a home now?
So you’re saying with my income and score it would be hard to get a loan for more than $190K? I don’t own a home and getting a DPA would be hard since everyone I know is poor.
Another forum said that I would have a better chance getting $200K if I went no-doc with my scores…this true?
Well it is not so much about a better chance. Based on your parameters you will probably need to go this route to overcome the DTI issues that Ramona mentioned.
Your scores are very helpful in gaining this type of funding.
The only way that you are going to reach your zero down is by negotiating with the seller’s for some concessions.
You are still going to need some out of pocket (taxes, insurance, appraisal…etc.)
I have money for closing and stuff but not enough to cover a DP and that. What do you think would be better…bring down my debt by paying off or moving all debt to one CC? My car is probably my biggest detb($650/month) so that makes a big difference.
Depending on how quickly you were looking to move on this…I would not do anything with your existing debt situation. Your credit score is fine*
Moving debt from one account to another will accomplish nothing unless you are lowering your overall debt load. Paying off some accounts may help but not if you are raising others. Keep what liquid funds you have as they will be helpfull along the way
*Be careful when quoting your credit score. I had a client today who pulled their 3 bureaus from one of the online organizations and it said that they had a 700, 725, and 715. My reports showed a 650, 639, and 670.
The reports that are being offered by these online companys are “consumer reports” and NOT the reports that lender’s pull.
I pull from MyFico…those accurate?
I was thinking of asking a family member(father) for a loan for pay off my debt…that way it’s no “visible” debt. ;D
Also, there are two “instant” ways I can pay off my debt load. I took out a $12K BT to invest with(long story) but I can pay that off and that will knock of $250 payment a month. If I sell my car and get a cheaper one :-\ that would knock like $400 month so instant I can bring over $650 off my monthly bills.
In my area the loan that I am thinking of for you has a county loan limit of $190,000, that does not mean you are topped out at that amount.
What County and State will you be buying in?
We could actually do a two unit and if it has a renter in one side we can use the income from the side that you will not be living in to help you with the dti issue. Now we may not even need to use that income but it has helped in the past when we are at the top of the scale.
MDhaas is right about the credit score. Lenders pull a much more detailed report. We pay for things like what year you were first reporting in the bureau, hawk alerts, fraud alerts and so on. Your credit score that is pulled online is a basic picture of what your history looks like.
Don’t worry about money down. You can really roll it all into the financing. Including the homeowners insurance.
The only thing that I see clients pay out of pocket would be a third party home inspection.
You think I would do better trying to find a two family with one side rented for say $300K? As an investment I think that would be better anyways I just thought that would be too far out my reach. I will look up some two family properties and see what kind of numbers I can get.
You could also as stated before go stated or you can also go NO RATIO LOAN they do not care about your debt ratios that way you can still be HONEST at what you are trying to do and not HIDE anything that is why they have these type of programs and the rates are not bad for Owner occupied programs and they work just fine with up to 4 units.
I would also suggest that you do a Grant program for your down if that is needed and the seller is willing to play with you on that creativeness and it is really easy to do.
There are alot of Grants out there for a down payment and closing cost, but you would have to pay escrow and inspection fee if the house is old, and that will run about $700 out of your pocket.