Rockland County, NY · Member since 2016 · 18 posts · 0 votes
Hi everyone, I'm new to BP and looking to house hack a 4plex in NY. Asking price is $299,000. There are currently existing leases and gross income is $43,200. I'm looking to owner occupy one of the units and purchase with an FHA loan. How can I make sure I qualify? I only make $35K at my job, but I have a side business where I made an additional $25K (Don't have a tax return I can show yet this year) and have a little over $20K saved up in the bank, no debt. 740 credit score. If I do 3.5% down I will only need $12K plus any additional costs. I'm afraid I'm only gonna prequalify for about half of what I would need for this deal if I'm lucky because they will only see I make $35K a year..
1. Would having a co-signer help me qualify?
2. Would a lender be able to count any of the existing leases as income to help me qualify?
Any advice would be great! Even if I can't make the numbers work with this deal I just want to be prepared and be pre-qualified before I waste a realtor or seller's time.
Investor · Indianapolis In · Member since 2013 · 47 posts · 19 votes
9y
I would talk to a lender, but I think with those numbers you could qualify.
I would ask the seller for closing assistance though, and make sure deposits and prorated rents are included in the purchase agreement. Estoppel agreement as well, since realtors and landlords can provide written leases, but often fail to enforce with a tenant.
Qualification and closing is nice, but I would strongly encourage that you make sure you personally can float this mortgage for six months 100% vacancy.