Low Down Payment Conflict

4 Replies

Hi, I am currently a college student and am looking to buy a 3-4 bed room home to live in next year (August- May) for my senior year, and rent out the other 2-3 rooms. Obviously August- May is only 10 months and I would spend most of January 8 hours away at home wih my family. Is there anyone from like the FHA that i could talk to in order to negotiate the 3.5% FHA loan, maybe change it to like 5-7% since i will won’t be in the home for the full 12 months? AND/OR Do you guys have any other ideas of low down payment options that would apply to me (either for full time students and/or someone living in the home for 10 months)? Thank you!

Would it kill you to "live" there an extra 2 months? You don't have bless the doorstep with your physical presence to claim the place as your permanent residence. Just drop by once a week or so to get your mail.

Pay the electric bill online.

Work the numbers, see if they make sense.

What were you planning to do with the property after the 10 (or 12) months is up? I would suggest those plans should be considered in your decision. You might want to continue living there for another few years, renting out part of it for cash-flow. Or you might want to sell the place and move on.

You know, it might take 60 days to sell the place, and in the mean-time, you have to live somewhere.

Or for that matter, just move in for those 2 months. I'm sure your family can be made to understand.

@Alvin Sylvain I will be graduating and have a job lined up back home (8 hours away) where I will living at my parents second home (rent free) and making very good money. Would take up most of my weekend for me to “check in” once a week for 2 months. I plan on renting out all the rooms after school and cashflowing almost 750-1000 dollars while living rent free and making a good salary (i will be a civil engineer). I would surely be able to stack a ton of money and buy a second rental property within like 6 months if this plan is to work out
Originally posted by @Sean Buchner :
... Would take up most of my weekend for me to “check in” once a week for 2 months  ...

Oh, boo hoo!

(can you see me crying for your pain? no? just as well, coz I'm not)

You're young. 2 months must seem like FOREVER. I'm almost 65, and believe me, 2 months goes by in the blink of an eye. Snap your fingers ...  whoa! it's December already!

OK, so "check in" once every 2 weeks or 3 weeks. Three week-ends shot to hell, and you're done.

My point is, I'm assuming you've done your due diligence and have determined that you're getting Killer Deal on this property with help from the FHA. Pounce on it! If you are required to live there for 12 months, and it's only convenient to live there for 10 months, then inconveniently live there for 2 months. Problem solved.

Oh my god, TWO MONTHS! Oh the humanity!

And congratulations on getting the job in Civil Engineering! I know I won't have to tell you to double-check your numbers to be sure this (and future) investment is a good one. Numbers should be second nature to you by now.

Best of luck!