All Forum Posts by: Samantha Miller

@Stephanie Medellin I saw that as well and also thought that was really strange!!!

@Christi Hawkins You're right, I can always ask and just see what they say, you never know! And thank you again for the suggestion and encouragement. I will definitely post an update! And I'm so glad to know that this thread might be helpful to others!

@Christi Hawkins Thank you so much for looking into this for me!! I greatly appreciate it! Yes I believe you are correct, there is a clause saying something to that effect. Interestingly, the income limits are pretty high in this program. $104k for 1-2 people, $122k for 3+, would still qualify. Even with the rental income, I would personally still be well below the limit. (Although perhaps they would be considering the combined income of the roommates themselves, not just mine). However, there is a separate clause within that same document, in a totally separate and unrelated section, that just states "rental of any portion is not allowed". So I am not sure if, even with keeping in line with the income limits, I can get around that blunt language that just says no renting period. Unless there is some commonly accepted definition of the word "renting" in this context such that it means "renting while not owner occupying" - but I do not find that language in the document, and they do not define their terms. Of course it does say it must be your primary residence, but it doesn't saying having it as your primary gets you an exclusion to the no renting. :(

@Carrie Hiner You are right, that's likely the case. My student loans took me out of the running for FHA, and other low-down programs were tricky. However, I didn't necessarily need low-down, if it was going to mean restricting me from renting (again, the goal I expressed to my lender from the start). Sure, if I qualified (legitimately) for a low down, I was happy to take it. But I did not know or think that low-down (at least this particular low-down) would restrict me from my goal of renting. We got too far along in the closing process before they showed me this clause (in fact, they didn't really show me - I pointed it out). I think somewhere along the line, my lender thought I was insistent on low-down. I always said that would definitely be ideal if it works, but again had I known what I'd be giving up...

@Kristin Caras Thank you so much, and I'm glad to think this post might help someone! A positive side.

@Lee L. I admire that! Life can't just be all business all the time.

@Stephanie Medellin So if I understand it correctly, PHFA backs the conventional loan I am being offered, allowing them to have me put only 3% down.

@Christi Hawkins Looking at my loan kit, it says it's a conventional mortgage (in the section labelled "Loan Type" - the options are FHA, VA, conventional, USDA, and other - they have conventional checked off.) I didn't qualify for FHA because of their new regulations for how student loans are considered.

@Christi Hawkins That’s correct. Is there language about renting in the OHFA? I linked the PHFA document back in the original post - it pretty clearly restricts renting from how I read it - I haven’t been able to find an interpetation otherwise but if you know any differently please share! Thank you!

@Cameron Strong Do you have a contractor's estimate on the cosmetic repairs? 

If following BRRRR strategy (disclaimer I am just going off of reading here, no first-hand knowledge yet), $65k x 70% = $45.5k. Subtract repairs, then you have your target purchase price. In this case, you know target purchase already, $30k. So if repairs (plus holding costs) are no more than $15.5k - it fits the strategy. That's assuming cash financing, I think you need to factor in closing costs, etc. if using hard money loan or something like that. Also depends on the plan, if not BRRRR. You said move-in ready - will you live there while doing the repairs? Then you don't necessarily need to factor in holding costs. Someone with experience please correct me if I'm off here! That's what I get. Seems like it could potentially be a good deal, with some more analysis on numbers (use all the BP calculators!)