Not approve due to low income
Hello everyone,
I’ve been doing my research on and off. As I would like to purchase my first property to rent. However, I make 25k and was denied a 235k loan 🤭. I’m looking for a second job at the moment as a customer service working from home to increase my income and only have 5k saved.
Any suggestions? Should I just save more money if so how much? and should I wait for all this to come to past and than try buying again with an FHA loan? This whole denial has discouraged me...
Any suggestions would be appreciated.
Most Popular Reply
Yeah that is rough with $25k in income they probably want you around 30% DTI so if you had zero other monthly debt payments that would be a total mortgage payment of less than $700 per month which even at the best interest rates gets you maybe to $150k borrowed and with only $5k down you might just squeak in with the 3.5% down. However if your area is anything like mine anything worth buying in that price range is a condo with a big honking monthly expense of an HOA. When the pandemic passes I'd look at other potential job opportunities to boost your income.