Purchasing my first property.. DTI

[Ashley DeLoney]

Hi everyone! I have been working with an investment specialist here in Phoenix, AZ to purschase my first buy and hold property. He has me set up on a search on the MLS for duplexes. I found a property and reached out to the lender that my specialist does a lot of deals with.

The issue I'm having is the lender wants 15% down on an FHA due to my DTI. My business (I'm a used car dealer here in Phoenix) is only three years old on paper so they're working with two years taxes. My first year and my second year are very different income wise. My first year I didn't make much and my second year was stellar.

Do I wait till Jan 1 when I have another tax year under my belt and when I have paid down my credit card (this has already been dome but has not hit my credit yet) to start looking at properties again? Will that help to obtain a more realistic down payment via FHA? The lender told me that I couldn't quailfy for a conventional due to my DTI.

15% down AND owner occupy threw me for a loop. 

Thank you for any and all feedback. 

[Bob Okenwa]

@Ashley DeLoney

If it were me, I'd wait. Prices are coming down here in Phoenix and the winter is a good time to buy, although "good time to buy" is subjective right now as prices are falling yet rates are still rising.

15% down on anything here isn't going to be cheap, let alone for a MF so be patient and get your finances in order first.