Finacing opportunities/House Hacking for 20 year old

7 Replies

Hey this is my first post so hello everyone lol I'm from Memphis and am wondering what are my possible financing opinions since I'm in school and have little to no credit. I am very interested in house hacking and am wondering is it even possible for me to get the FHA loan in order to get the 3.5% down payment assuming i find a duplex or triplex thats affordable, or would a typical bank loan used to invest in a single family house be a better option?

Unless you're also working full-time you won't qualify financially on your own. Find someone's credit to piggyback off of. A parent or close aunt/uncle. I purchased my first rental while in college, a duplex that I am still living in today. Parents co-signed the loan and I refinanced after graduating college when I started making a little money. Was and still is a big help financially and has allowed me to grow more quickly. 

Thanks Chris, this makes since but convicing my parents would be a challege
And if i do work full time does just having the job work out or would my annual salary be what the lender would look at?

getting started is hard as you've got little money, less experience, and people will be concerned about your legitimacy. I come from a very entrepreneurial family and it took awhile for me to get them on board as well. I spent a tremendous amount of time educating myself on rei, eventually they saw my interest and desire was sincere, focused, and that I was gaining the knowledge to be able to perform. Be creative, is there a way you can make it beneficial for them as well?

Your salary will be dependant on what you qualify for, as well as your debt to income ratio, credit score, credit history, job history, etc. As a first time home buyer there are good programs to help with some of those issues. Search around this site and Google 'first time home buyer programs" and you'll find a wealth of information.

Thanks Christopher i definitely will and i appreciate the response, i will definitely check it out and see what all i can do

Convincing your parents may be easier than you think, especially if they are paying for your student housing now. My son will be starting college in the fall. For student housing, his bill will be about $600 an month. A good 2 bedroom apartment off campus rents for around $700 a month. I could probably purchase a decent property for around $400 a month. 

So, if the year goes well and he goes back next year for his freshman year, I will be buying a place there, charging his roommates $300-$400 a month and he lives rent free.

Thats what i had in mind, ill see about a sit down with them but this in essences would be harder then getting a loan from a bank lol. Just curious are there any other options, that anyone knows of? And why aren't i getting notifications when someone replies?

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