Realtor · Boonton Township, NJ · Member since 2013 · 2k+ posts · 1k+ votes
If i were to move to Florida from NJ and purchase a house would a bank be willing to provide a mortgage for me even though i would be starting a new career and my previous employment would have not barring on my new career? In nj the banks want to make sure you have had a steady job for a few years and sufficient income before they can provide you with mortgage.
Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
13y
If you were putting down say 20% to 50% of the purchase price a bank might go for that at such a low LTV that they feel safe if you default.
Also if the job is new and not the same field as you were in then that is risky for a lender. If however say you want to buy a 200k house but have 100k in savings you might find a lender because you are flush with reserves.
If you have little to no money, shaky credit to good credit, and starting a new job in a new field, and are wanting to only put 3.5% down FHA etc. then you can pretty much figure out the odds and your answer on that one.
What you might want to do in a situation like that is a lease option or a lease purchase where you lock in today's pricing and then rent while improving credit and establishing a job. Then you have instant equity when the market has risen and pre-set sales price.
The down side is interest rates on loans might be higher down the road and mortgage insurance for people putting down less than 20%might increase when you are ready to purchase.
Investor · Sherman Oaks, CA · Member since 2008 · 6k+ posts · 3k+ votes
13y
Hi Shawn,
Getting a $200K house and paying full price but large rent credit might be a way to go.
Give yourself 2 years to get the mortgage and a 50% rent credit subtracted from the future purchase price.
You can tie the purchase price to a future appraisal, as you need a new appraisal to get the mortgage in the future. It is a gamble for both parties, but a good solution if the seller has no equity.
Florida homes may depreciate as some of the other sand states, like CA, NV and AZ.
Offer to pay minor maintenance to entice the seller, but only 1st 100 dollars or so.
Protect yourself and use a 3rd party payee to get your money to the mortgage company, the taxes and the insurance. Anything over the PITI goes to seller. Offer to pay for it, usually under $20 a month.
Do a prelim title search to make sure the sellers are the owners. Don't get scammed.
Get a market rent survey in writing from a property manager co, as this will be required to get the mortgage. Don't pay more than market rent. Mortgage Originators wont like it.
You could pay market rent plus an additional option payment. This will accelerate your ability to get the mortgage. Make sure the payments pay down the mortgage and not directly cash to seller.
Make sure the home has repairs suitable for a FHA loan.
Have your agreement assignable in case you need to sell your interest in the agreement. Life and s@#t happens.
Have an Escrow opened and a Memorandum of Option recorded so the title is clouded, so that the seller cant sell or encumber.
Realtor · Boonton Township, NJ · Member since 2013 · 2k+ posts · 1k+ votes
13y
thanks guys, i appreciate the responses. What about if i stay in NJ and purchases and investment property in FL but stayed in NJ and had a rental company watch over it? ex: I keep same job, stay in NJ, will FL bank provide a mortgage for me if i am using the house as a rental property?
Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
13y
If your income and other things check out you could buy an investment property possibly.
Down payment and interest rate will be different for an investor owned property. The reason is when times get tough if you are not living there chances are high you will default. Lenders asses risk and know if the place is where you lay your head at night to sleep you will fight much more to keep the place.
A lender at closing will usually make you sign a document stating that you tend to live in the place if you are going for a home owner loan. Please DO NOT say you are going to live there to try and get less down and a better rate as an investor because the docs you sign at closing you will be committing mortgage fraud and they can and will come after you for trying such things.
