Finish lease (4 more months) or jump on a house hack?

Question

My W2 is with the airlines. Which until 9-31 my job is safe. But after that its all up in the air right now. Should we finish the least that ends in Dec or make the jump on a house hack while i have verified income.

I do understand the lease is legal.

Daniel Soyars · Answer

@Jaysen Medhurst

I understand. It just changes the plan.

Jaysen Medhurst · Answer

Basically, @Daniel Soyars, if you have reason to believe that your financial situation is going to change, you need to let the lender know that. Not doing so would probably constitute mortgage fraud.

When my wife and I were buying our primary we knew at the time that she was going to leave her job. Even though it was several months in the future, we made sure the lender knew. We essentially had to qualify based on my salary alone.

This doesn't suck. It's very fair. The lender has every right to be aware of a known reason why it may be more difficult for you to pay back the mortgage.

Daniel Soyars · Answer

@Jaysen Medhurst

The Sep 31 was set by the airline bailout.

I didn't realize that would be disclosed. That sucks!...

Jaysen Medhurst · Answer

What's driving that Sept. 31 date, @Daniel Soyars? If you've received some kind of formal notice from the airline, you'll have to disclose that your lender. If this is some kind of industry-wide thing, they probably know already. Either way, it could be very difficult to qualify. No reason not to try. Be up front and see what happens.

As far as the lease, depending on the state and lease. You may lose 1-4 months rent. Technically you're responsible for paying out the remainder of the contract. Whether or not you're held to this or how that's enforced in your state will make all the difference.

Financially, the question comes down to availability and monthly living expenses. If you're just starting to look, there's really no reason to thing you'll be ready to move in four months. It will take some time to find the house hack, negotiate, and closing can easily take 60-90 days. Will your living expenses decrease with a house hack? If so, how much? How comfortable are you doing a rental-property analysis?