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Angela Jossy
  • Tacoma, WA
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Should I use the $155k loan I'm approved for now or wait a year?

Angela Jossy
  • Tacoma, WA
Posted Oct 24 2017, 14:49

I met with my credit union and then I met with a mortgage broker.  If I wait until next year when my credit rating is 700 and I have a few more debts paid off then I can get a zero down conventional loan from my credit union. If I want  to buy something now, the mortgage broker got me pre-approved for $155k and downpayment assistance (if you new and don't know what that is, its is a secondary loan that becomes due in 30 years or if you sell the property).  

I asked the mortgage broker what it would take to get approved in the 300k range and she said I would need $6000 a month in income. I'm at about $3,300 right now. I'm looking into creative ways to increase my income like taking in a foreign exchange student, doing side jobs, etc. I'm already driving uberEATS 2 days a week for around $500 extra income per month. I also do websites, graphic design, logo design and social media marketing but I haven't been doing a lot of that type of work lately because my day job as a Community Manager takes a lot of mental energy. The uberEATS driving turned out to be a great stress reliever! 

I checked my local real estate listings and there is not a lot in the 155k price range that would give me the ability to get rental income. Since this has to be my primary residence, I don't want to just have a two bedroom with a roommate. That's a little too close for comfort and a lot of eggs in one basket. I was hoping for a 3 or 4 bedroom so I can have some flexibility and do things like airBnB and roommates. The only properties that I found like that were foreclosures heading for the auction and I don't think I can buy at auction with this type of FHA loan. What I actually wanted was to buy a multifamily like duplex, triplex or 4plex but that doesn't seem possible for me unless I seriously increase my income. I was also considering single family homes that have a second unit like a mother-in-law apartment or a tiny house or something but I haven't seen anything like that in this price range.

I am willing to wait a  year and save up more money so I have some safety net and capex but a friend pointed out to me that that would mean one whole year of pouring my money down the rent drain. 


Am I missing something? What advice can you give me? 

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