My plan is to start investing late this year/early next year. I graduated in December and am trying to build capital right now. My parents are willing to lend me money as well. I work three part time jobs and can't look for full time until after my one month trip abroad this summer to see my grandmother in her failing health.
After that, I will start looking into conventional or FHA loans when I find a full time job. I'm concerned that this one month gap and part time jobs will make it more difficult to get a FHA loan as it seems they want to see stability in income and employment.
Would I have to wait after working another year full time to even consider looking at loans? I guess I'm just being impatient to start ASAP. There is a multifamily property 5 minutes from my parent's house that would be a great first buy but right now I'm not ready.
I'm wondering how students right out of college were able to qualify for the loan. I read that the lenders consider your time in school as well. Any insights and advice would be greatly appreciated.
@Sarah T. 1 month is not going to make a difference. After the graduation when you have full time job you can apply for mortgage right away.
Of you are in a hurry to buy, how about moving up your one month summer trip to asap and then you can start working full time sooner? If she is in failing health it is better to travel now than to wait anyways.
I'd look into a Fannie home ready loan rather than fha when you're ready. Fha has higher costs and less homes, especially older starter homes, will pass an fha appraisal.
I never allow fha loans when I sell. Complete pain.
Thank you for your input. I am currently in an 6 month internship and 3 month job contract so I can't go earlier.
@Whitney T Redfield I'll look into partnering if I can't get a loan myself. Thank you!
@Steve Vaughan Thank you for your advice. It's just that so many blog posts and people say it's one of the best options for multifamily buy and hold. I have a lot to learn.
My daughter applied for a credit card a week after starting her first 65k year job and was turned down. Apply but you may need a co-signer. After six months on the job you are probably more attractive to a loan officer...besides, there is no hurry in most markets. Look at charts of the real estate cycle. If your area is nearing the top why rush in? Why stress yourself out at the beginning of your career? Why not rent a year and focus on your day job and make sure you want to do it locally for 5 years....you may want to move or apply for one of those internship type positions where they move you around the company in different locations, heck, you may get an opportunity to work overseas. What’s the rush? Real estate is easier to get into than get out of...however you can get a property manager; if you buy, just be sure to buy at a price allowing you to pay not only the monthly pm fees but all the fees for all the services you will need a pm to perform.
@Marian Smith thank you for your input. My main motivation to start real estate investing is to help my parents financially for retirement and eventually my own retirement. They’re immigrants and only have a few years left to work in the job they worked for decades. The cost of homes and property has risen so much this past two years where I am. I just don’t want to miss the boat before it’s just too unaffordable.
Sounds like you are determined to buy as soon as you can. I would call and talk to an FHA loan provider. They know how to get you qualified and will help you start getting ready to apply. Moreover, start working with a fha loan provider that has experience in fhs 203k loans. Then you can buy a property in need of repairs if you so desire, and finance the repairs into the loan. I am not suggesting you buy a rehab, just maybe you will find a great property that requires appliances and a new hvac system. Out of the question if you cannot come up with an additional 10k but a 203k loan will front the money. Good luck.
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