First Time Buyer

2 Replies

Hello,

I want to say thank you in advance for any information provided in regards to this query. 

I have a person who is interested in an investment property,  but it worried about it affecting her first time buyer status. 

Does purchasing investment property affect any deals you can obtain as a first time buyer of a primary residence?

Thank You Aisha

I am a Realtor in Northern Virginia.  Many first time buyers are locally driven and subject to the rules of that organization or governmental authority.  In general, my experience has been to qualify as a first time buyer one needs to not have owned ANY real estate in the last 3 years.  So, yes if you are looking at a 1st time buyer program, an investment property would probably disqualify you.

Also, know that most lenders will not count any income offsets on that investment until you have been had it for a year or sometimes more.  That means the entire mortgage will count against  your debt ratio and the rent will not be credited back.

I have seen many people buy that "investment" as a personal residence.  They live there for a year or two and then move on to another.  I have one young client who moved thru 3 condos in about 7 years, never selling but keeping each as a rental.