First Time Home Buyer: Househacking

[Pablo Cuevas]

Hello, I am 20 years old, and I am looking to buy my first house at around July-August 2022, and renting out the spare bedrooms to my current apartment roommates. 

I am currently working a PT-$15/hr job, saving up all the money that I can afford to save for the down/closing costs. I am looking to buy a $150k-200k house, and I just want to get some advice on the best way of going about this. 

I have been doing a lot of research on the process and options I have on getting this house to work. The best way seems to be through an FHA Loan and a DPA Program. Do banks give me the access to FHA Loans and DPA Programs, or do I apply to those separately? Is a bank the best option for a loan, or where should I look instead? I suppose the lender options, rates, and qualifications is what confuses me most about the process with the idea of househacking.

I am not entirely sure if I am going about this process correctly, but any guidance or advice would be great, and does this goal seem realistic given my income and the home value I am looking for? 

[Bradley Dosch]

Yes, this goal definitely seems realistic. Good for you for the long term planning and saving!

Using a bank for a conventional or FHA mortgage is definitely the way to go. I would get in touch with a lender and agent early on in the process so you can share your planning with skilled professionals.

Bank of america is offering $10k towards you down payment and 7.5k towards your closing costs. Look up there loan program and see if it applies to wherever you are. I've looked at a lot of down payment assistance programs and most of them just have higher fees and rates. This one is legit free money. It sucks working with a big bank but find a good loan officer and it'll all work out. Get in touch with them early and see what they can do for you!

Mortgage Down Payment Center (bankofamerica.com)