I'm looking to buy a house soon. I have the down payment and all. However, I'm 24 with a credit score of 731. I'm afraid I won't qualify for a conventional loan on my own because I don't have that long of a credit history. My parent's aren't an option as co-signers. Should I get a pre-approval on my credit alone or try to find a co-signer? I didn't want to hurt my credit for no reason. Help an eager young entrepreneur out!
Hello, Daniel yeah I just started employment at a Charter school. I make 40k a year. I have my eye on an investment and it cash flows well based off of my analysis. But the loan would be for 400k
Okay, are we looking at a house hack or traditional rental property?
If we're talking a conventional owner-occ mortgage then you're likely going to be allowed to go to the high 40s% on your debt to income.
Find a trusted lender (ideally a referral from someone w/ experience in RE), tell them what you're trying to accomplish, have them analyze your financial situation and then they will either tell you:
1.) Yes, you can buy what you want
2.) You can't buy what you want yet but here's where you need to be and how to get there.
Developer · Orange County, CA · Member since 2020 · 42 posts · 23 votes
5y
731 isn't all that bad to be honest. Just try it out on your own and see what rates you get. Wont be the lowest rates but should still get pretty decent rates probably around 3 depending on points.
Also nothing wrong with getting 3 quotes at once. I always get at least two to compare...
I was worried that if I got a quote my score would go down. I was looking to buy a multifamily house around 300k. Is that too much for my first investment? But, okay I'll get a quote! thank you!
I'm looking to buy a house soon. I have the down payment and all. However, I'm 24 with a credit score of 731. I'm afraid I won't qualify for a conventional loan on my own because I don't have that long of a credit history. My parent's aren't an option as co-signers. Should I get a pre-approval on my credit alone or try to find a co-signer? I didn't want to hurt my credit for no reason. Help an eager young entrepreneur out!
If you have a solid debt/income ratio, a good credit score (you do) and a steady W2 you should have no issues. I bought my first house hack at 21, you should have no problem at 24.
In your other post you ask "is $300k too much for a first investment" - the question you should be asking is "does it cash flow?".
Do you have a steady W2 job?
Also, stop thinking being 24 is a limitation, being young has helped me tremendously and continues to do so.
Hello, Daniel yeah I just started employment at a Charter school. I make 40k a year. I have my eye on an investment and it cash flows well based off of my analysis. But the loan would be for 400k
Hello, Daniel yeah I just started employment at a Charter school. I make 40k a year. I have my eye on an investment and it cash flows well based off of my analysis. But the loan would be for 400k
Okay, are we looking at a house hack or traditional rental property?
If we're talking a conventional owner-occ mortgage then you're likely going to be allowed to go to the high 40s% on your debt to income.
Find a trusted lender (ideally a referral from someone w/ experience in RE), tell them what you're trying to accomplish, have them analyze your financial situation and then they will either tell you:
1.) Yes, you can buy what you want
2.) You can't buy what you want yet but here's where you need to be and how to get there.
Hello, Daniel yeah I just started employment at a Charter school. I make 40k a year. I have my eye on an investment and it cash flows well based off of my analysis. But the loan would be for 400k
Lots of variables for your situation. Did you go to school and that's why you're new to the job market? Does your income qualify without the rents? While you have a good score, do you have the minimum trade lines open and active for the required length of time available? Contact a mortgage broker and get going. Sounds like a good property, but you need to find out more specifics to see if you are ready to buy.
Best of luck and congratulations on getting started young.
Lake Oswego, OR · Member since 2020 · 58 posts · 24 votes
5y
@Christian Kim
Christian, for conforming loans, you can get away with insufficient trade lines. Don’t be discouraged!
Can you try to do this as an owner occupied property? Has lower interest rate, lower down payment requirement etc. but you can’t use future rental income to qualify so your income from your job will have to be sufficient to qualify. Debt to income ratio will be very important.
Investor · Waco TX / Conroe, TX · Member since 2017 · 376 posts · 228 votes
5y
I am not a loan underwriter but it sounds like you should be able to get a loan to me.
You are employed, have decent credit and money fort a down payment. I am just not sure how much you can get approved for.
Like @Kevin Purvis said, it doesn't hurt to get multiple quotes and from my understanding, once you get one credit check, your score is frozen for a certain amount of time and that allows you to go shop around loans without risk of lowering your score even more.
One bank might tell you no way but the other will be happy to work with you. A "No" is just another step closer to a "yes".