I am a PT agent and newbie investor in Jacksonville, Florida trying to purchase my first duplex to house hack. I took a 10 month sabbatical to travel the world and recently returned back to FT/W-2 work in April 2018 (same industry). I am trying to purchase an owner occupied duplex to house hack, but am having some financing issues to make this deal happen. I personally have about 20k cash (7%) to put into the deal.
Here is the situation:
- FHA - would only require 3.5% down and could use rental income to qualify for purchase, but FHA requires 6 months of continuous employment AT THE SAME EMPLOYER and I am only at about 2 months.
- Conventional - requires 15% down (aka I am $25k short) and "may" be able to use rental income to qualify
Looking for some creative options on this one. Some ideas I have thought of, but have limited experience/knowledge with are: delay closing until I have 6 months employment, option contract, seller financing, rent from owner until 6 months requirement, loan from family (trying to avoid).
Thanks BP family!
Good afternoon @Brett Nissen ,
I would speak to different lenders with regards to your employment situation. Some lenders would may be able to pre-approve you since you did not change industries.
FHA seems to be the safest bet for you. Down payment is not the only cost you want to account for. You also have about 6% in closing costs to account for. Aside from this, you'll also need a couple of months in reserves.
As for delaying closing, you'd first have to be under contract which would require a pre-approval. Contracts usually have a projected closing date which means that the seller can back out if things drag on longer.
Best of luck to you!