Updated over 12 years ago on . Most recent reply
HFA/HUD Loan
I talked to this Real Estate Advisor from this real estate company about investing in real estate properties. I told her that I did not have the funds for the the 20% DP for NOO properties and that I would consider buying an OO property that I can rent out after 1 year. Obviously the 3.5 DP for HUD or HFA loans is more affordable than the 20%. She told me that I could that, but that it would be more difficult to get another property after I rent that one out because of the increase in debt, thus affecting my DTI ratio.
I've read that the way to improve your chance of getting another loan is by using the rental property income to increase your DTI ratio. Has anybody ever been in a similar situation and what has been the outcome? I really want to get started in investing, but not sure if I should take the route and by an OO and rent after one year and then be stuck. Right now I don't have the money to buy a NOO property and I don't know if I should pursue a HFA/HUD loan. I'm also 1099 so would like to know how that would factor into the equation. Your assistance would be greatly appreciated.
Thank you,
Jaime