First time buyer

4 Replies

Hello everyone, So my fiancé and I have decided to buy a modest home to move into from our current apartment. Our goal is to buy our first home within 6-12 months and buy a rental property possibly a year thereafter. For some background we live in Frisco, Texas where the market is blowing up but my question is whether anyone has ever heard of or dealt with getting financing through hometown heroes. In addition, being a newbie I'm struggling with how much to put down on our first home with the goal of trying to purchase a rental property within a year after our first purchase. Any ideas? Thank yall Carlitos

@Carlitos, How you finance may dictate how much you have to put down.  There are varying opinions - put down less for your primary residence and you'll have more for your rental - but again that can depend on how you finance that and the rules for each home.  Have you considered buying your rental first? Or buying a multi-family?

I have a VA mortgage which, from my understanding, is similar to the Hometown Heroes Program. You'll want to get all of the program rules from your lender. I would shop around and ask two or three lenders how they administer the program to ensure you are getting a consistent message along with shopping your mortgage rates.

I hope that helps.

Originally posted by @Carlitos Irula :
Hello everyone,

So my fiancé and I have decided to buy a modest home to move into from our current apartment. Our goal is to buy our first home within 6-12 months and buy a rental property possibly a year thereafter.

For some background we live in Frisco, Texas where the market is blowing up but my question is whether anyone has ever heard of or dealt with getting financing through hometown heroes.

In addition, being a newbie I'm struggling with how much to put down on our first home with the goal of trying to purchase a rental property within a year after our first purchase.

Any ideas?

Thank yall

Carlitos

Hi Carlitos,

First, congrats on the upcoming marriage. 

Now for a quick reality check; buying a house is great but once you move into it it's no longer an investment it's a liability!

So don't think about your primary residence as an investment. Trust me, you'll sink more money into it than you have planned for. 

Personally, I say get as much financing for your home as you can comfortably live with. Pay close attention to the word comfortably! Over financing beyond your comfort zone will prevent you from being able to save for your investment property.

There is one exception to the above limitation and I would highly recommend you look into it and that's buying a multi family and moving into one of the units (a duplex or quadplex). If you stay below 5 units you should be able to qualify for the conventional loan and this way you'll have someone else pay for your mortgage. 

Frisco has a few areas where there are duplex/fourplex properties and so does Plano, carrollton, mckinney, little elm etc.

With the market being insane as it is these days, there is nothing really on the market but you can do the legwork, find the owners and try to convince someone to sell to you.

Good luck!

Joe

Joe Baron

 Thanks for that info, we are considering the multifamily units.

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