Updated over 10 years ago on . Most recent reply
Credit won't show up for 5 more months-Deal Breaker?
I have a willing co-signer for a mortgage on a house that I am looking to buy who has great credit. I also have about $7000 to invest in a house. However, I have no credit. I wanted to do a 203k loan to purchase and upgrade a house below market value. I would owner-occupy it and pay 3.5% down or around $3500. I would sell it for around $20,000 profit at the end of 1 year. During this year, I would owner-occupy the house and charge rent in the other 3 bedrooms, making about $300/mo. I already have room mates lined up to live there under these terms.
Since I won't be able to be on the loan for the house in time for the next school year of College to begin, My co-signer would be willing to put it in their name, however, it would be considered an investment property since they have a primary home already. The only problem with this is that we would be required to put down 15%, or $16,000 to purchase this house.
I am really in need of options here. I am drawing a blank with time closing in. My deadline to move in (after closing and repairs) is August. If it doesn't happen, I will be stuck renting an apartment somewhere and have no investment.