Can we qualify for a loan based on our income

3 Replies

Hello BP members, currently living in New Jersey renting paying about 1100 a month in rent and officially fed up. Me and my cousin who is also paying about the same amount of rent for his apartment are considering partnering up and buying a duplex together. We have about $50,000 for a down payment. In my area which long branch nj a 2 unit 2 bedrooms on each side can cost anywhere from 250-400k. Our goal at max is live there for 5 years since the school system is not all that great with high school being rated at abut 6 out of 10. To Summarize current income 70k a year credit score over 750 for both, 0 debt for both. Can we qualify and if we can how much. I’m guessing if we can afford to pay 2200 a month in rent combined I’m sure we will be able to afford a mortgage payment if we get a 30 year mortgage. Any input will b greatly appreciated. Thank you

I would reach out to a mortgage broker and see what you can actually qualify for first. Once you determine how much you can afford you can start to look at properties in your price range. House hacking sounds like it might be a good strategy if you and your cousin live on one side and you rent the other.

The best way to find out is to get prequalified with a bank. And if you are/can be a member of a credit union--depending on the credit union--some are offering 0% down and no PMI on primary residence loans.

@Umar Farooq I agree with @Grant Miller and @Nicole W. When we were purchasing our first property, my realtor buddy straight up told me that being pre-qualified for a loan would make the entire process smoother (this was coming from a person who was helping us for free - and doing a good job at it!) for everyone. 

Furthermore, depending on your preferred market and personal financial situation, mortgage programs will be available with varying terms. A good mortgage broker/credit union/regional bank will help you ascertain what is the best fit for your needs (short and long-term). 

Although, house hacking is a good strategy, you should think long and hard to decide if this will be an investment property or a place where you live. If you plan on acquiring additional properties, it might (depending on your situation) be better for you to continue renting, rent an invested property, run it, set more capital aside and buy an additional investment property a short while later. 

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