Hello! I'm a total newbie to this so I would appreciate any insight. I recently learned about this wonderful site and I am interested to start investing in real estate through house hacking. After graduating this semester, I will find work in web development and am open to working anywhere. I first step is building capital. I know my parents and aunt will be able to loan me $20k. I still want to save enough for cash reserves and repairs.
For an FHA loan, it seems that employment requirement is recent 2 years. While attending school, I've worked at a relative's business these past two years on weekends but didn't make enough that I had to file taxes. I do have the checks as pay stubs though.
1) Am I eligible for an FHA loan by next year though my pay stubs and proof of enrollment in school?
2) How will I know I will be ready? Is it when I just have the enough funds?
Max earn and not pay federal income tax is about $9,499, which if you have fico of 740 or greater, means you would qualify for max loan of $40k. If you got a co-signer (parents), and 3.5% down, you might have a chance for a decent property. If it was a 4plex, then it would help immensely with the PITI and maybe net plus $100-200, or break even. And, you have to live in one of the units. Are there 200k, 4plexs in Clermont, Florida?
@Account Closed
Are you a wholesaler in Las Vegas? You are commenting on a whole range of topics, in a short amount of time. I own several 4plexs in Las Vegas, and want to add to my portfolio.
Roseville, CA · Member since 2017 · 73 posts · 24 votes
9y
I would talk with a loan officer to see what strings they can pull and see what they recommend you do to qualify. Just make sure the property cash flows(watch Brandon's videos and listen to the podcast before you act because it can help you prevent from making costly mistakes)
Investor · Cleveland, OH · Member since 2015 · 6k+ posts · 2k+ votes
9y
@Sarah T., generally, Lenders will not accept your aunt's $20k loan as any part of your deposit. If you already received it by then, they'll treat it as if you've got a $20k credit card debt, so your Debt-To-Income ratio will be affected accordingly [afaik]. They'll want to see your SAVINGS, and yes, your (past two years) income.
You'll know you're ready: when THEY say so! Welcome to BP. All the best...
Max earn and not pay federal income tax is about $9,499, which if you have fico of 740 or greater, means you would qualify for max loan of $40k. If you got a co-signer (parents), and 3.5% down, you might have a chance for a decent property. If it was a 4plex, then it would help immensely with the PITI and maybe net plus $100-200, or break even. And, you have to live in one of the units. Are there 200k, 4plexs in Clermont, Florida?
@Account Closed
Are you a wholesaler in Las Vegas? You are commenting on a whole range of topics, in a short amount of time. I own several 4plexs in Las Vegas, and want to add to my portfolio.
I was hoping to look at properties in the bigger cities like Tampa, Gainesville, or Orlando. I don't see any 4plexs in Clermont atm.
@Di Di Dee
Thank you for your advice! There are blog articles about college students that got into house hacking and I guess it's no longer as easy as they make it seem to be. I will just save and learn until I am ready.
Investor · Orlando, FL · Member since 2016 · 355 posts · 380 votes
9y
@Sarah T., welcome to BP! You're in the right place. I live in Clermont myself, but I own 3 units in Chattanooga (1 SFR and 1 duplex) and 1 unit in Jacksonville (SFR). I'm available to chat if you like.