Would I qualify for a Multi-Family House Purchase? (Lots of numbers included)
Hypothetical Situation:
Between myself and my girlfriend (who are looking to buy a multi) we make about $60,000/yr before taxes. The rental income for the area we're looking at is around $950/unit. We could do a MassHousing loan in Massachusetts, or an FHA loan. Each has its benefits. MassHousing, I don't have to pay mortgage insurance, but with FHA I can use 85% of the market rent to qualify instead of the 50% of market rent from MassHousing.
THE NUMBERS
$60,000/yr Gross Income (Combined)
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$950 * 2 Units * 12 Months * 50% = $11,400/yr (MassHousing)
$60,000 + $11,400 = $71,400/yr (Assuming 50% can be used)
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$950 * 2 Units * 12 Months * 85%= $19,380 (FHA)
$60,000 + $19,380 = $79,380/yr (Assuming 85% can be used)
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We are both completely free and clear of any student debt, and/or credit card debt. The only debt we have between the two of us is a car payment that I make for $279/mo. My credit score is higher than hers by about 100 points (Lets call it 750 and 650) though due to something that was on her credit for about 4 years without her ever knowing about it.
Would that poorly affect our qualification to purchase? And with these numbers, what kind of price point should I be looking at. I'm 21 and she's 26. Yes, I'm starting early and with great intention.
End long post.