Tips on Finding a Lender for First Time Buyer: Out of State

[David Ruiz]

I live in California, but the housing prices and new tax laws are prompting me to invest out-of-state. As a first time buyer with a modest income and very good credit score, I am considering an FHA loan.

I have spoken to two lenders in California, and they both advised me that an owner-occupied property would be my best approach based on my income. Ideally, I would love to buy an out of state investment property and continue living in California, but I am open to living out of state for a year or two to satisfy the FHA's required one-year occupancy rule. If I do live out of state, the lender wants to see that I have a job in the new state. This is my catch 22.

Considering my situation, can anyone advise me on how to successfully find a lender for a property out of state, either FHA or other.

[Caleb Heimsoth]

If you want to continue to live in CA but invest out of state your best bet is a typical residential loan, which will be 15-25 percent down and 4.5-5ish interest rate, amortized over 30 years.

This is what I’ve done and so far it’s worked out well. I don’t live in CA but I live in an expensive market (compared to the central part of the country) and my dollar goes further out of state.