I am going to be a first time home buyer and I am looking for alternative ways of buying my first deal. I had a cosigner but that seems to have fallen through.
Hopefully you guys can enlighten me with some new and/or different ways to get in on my first deal!
That's like how do you get your first girlfriend?
Traditionally if you want your first deal and get on the property with the rental income you get a duplex including one in probably 3% FHA
Non Traditionally you can learn about seller financing and creative financing and work with subject to existing financing, lease options, and wraparound mortgages when purchasing. You need a motivated seller, and the best lead for motivated sellers are expired listings because seller has already tried to sell traditionally with An agent
If income is your problem, see if you can get a 2-4 units multi family home. The rent can help you qualify for the mortgage. I believe the bank will take 70% of the potential rental income to calculate the income to debt ratio.
If down payment is your problem, as Brian said, you can get the FHA loan with 3% down or ask your family/friend help you out. Because owner occupied home can take "gifts". Then pay them back with the extra cash you receive from the rentals.
An owner occupied multi-family with an FHA mortgage and 3,5% down is a great way to get started. You can ask the seller to pay up to 6% of your closing costs, with an FHA. You would be required to live in one unit, but could purchase up to 4 units.
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