First time home buyers grants? What should I do

First time home buyers grants? What should I do

New to Real Estate · TX · Member since 2024 · 14 posts · 6 votes

Hello, BP community!

Here's my situation, I was going to start a position as a project engineer this upcoming Monday with an annual salary of $72,000. With that income and currently no debt I was able to get pre-approved for properties in the 300k mark. Two weeks ago I was offered the opportunity to play professional baseball for the Los Angeles Angels so I decided to pursue that because it has been a dream of mine. With baseball, you start making money once you reach the big leagues, in the minor leagues, every player's salary ranges from 34k to 39k. That decreases the amount of money I would be approved by a lender to purchase a property. The price of the properties I intend to house hack in my college town located in Abilene Texas near Fort Worth ranges from 150k to 200k. For properties in that range, my monthly payment will be more than 40 percent of my monthly income but I should still be able to pay for that by renting the other rooms. I am expecting a cash flow between $1200 and $1500. I will only live in one of the units 4 out of the 12 months of the year because the other 8 months I will be with the Angels organization, during that period they provide a place for me to live and also food, so during those 8 months I would have more money I could save up and use in my house hack. I have 5k saved up and I know I would need around 12k if I do 3.5% down with an FHA loan. My question here would be if lenders would be willing to go when my mortgage payments would use a little bit over 40% of my monthly income. If not what would be some other options? I also want to purchase the property by the end of the year and was wondering if there are some grants that would help me with down payment assistance and if it would be recommended in my situation.

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  • Elias HalvorsonBusiness Member
    HI · Member since 2024 · 225 posts · 130 votes
    2y

    FHA goes to at least 50. Some conventional programs go up to 50% DTI as well. The problem you're going to encounter is your income is not stable, and you just started doing it. I have never lent to an athlete, but I have lent to a few entertainers. I think the government (FHA) and conventional side will require at least a year, if not two of this type of income. There is no stability and it is seasonal.

    Elias Halvorson C2 Hawaii NMLS#1697041HI Branch NMLS#1244222 585 Reviews
  • Derek BrickleyBusiness Member
    Lender · Ann Arbor, MI · Member since 2021 · 664 posts · 226 votes
    2y

    Hey Rolando,

    Congrats on that opportunity man!  There are a number of options out there to help with househacking (I bought a househack last year).  Would need to know a bit more with your situation, but we typically work with guys in the NHL who might be starting out and are looking for some possible help on getting into their first home.  Feel free to reach out here, happy to see if we might be able to help.

    Gold Star Mortgage Financial Group548 Reviews
  • New to Real Estate · TX · Member since 2024 · 14 posts · 6 votes
    2y
    Quote from @Elias Halvorson:

    FHA goes to at least 50. Some conventional programs go up to 50% DTI as well. The problem you're going to encounter is your income is not stable, and you just started doing it. I have never lent to an athlete, but I have lent to a few entertainers. I think the government (FHA) and conventional side will require at least a year, if not two of this type of income. There is no stability and it is seasonal.

    I just graduated college and some lenders told me that my position as a student could be used for the 2 years of work requirements. And I do agree that with professional sports, income is not stable unless you are at the highest levels and you get millions of dollars in a contract that is fixed on a given amount of years. 
  • New to Real Estate · TX · Member since 2024 · 14 posts · 6 votes
    2y
    Quote from @Derek Brickley:

    Hey Rolando,

    Congrats on that opportunity man!  There are a number of options out there to help with househacking (I bought a househack last year).  Would need to know a bit more with your situation, but we typically work with guys in the NHL who might be starting out and are looking for some possible help on getting into their first home.  Feel free to reach out here, happy to see if we might be able to help.


     I would love to go into more details about my situation!

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