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1 Hour Away from Indy - Lending options?
I am currently located in Lafayette, Indiana. I have been living in a duplex househack that I purchased in 2021. I would always prefer to use as low a down payment as possible, but I understand that being located 1 hour from Indianapolis may present some challenges.
I currently have a W2 income in Lafayette and am a licensed realtor in Indiana as well. I have not been as focused on the real estate sales and have really just held onto my license for the time being.
Are there any lenders that would be a good fit for this scenario? I do not see myself doing 20% down on any property greater than $150,000 to ensure I still have reserves.
I have already linked up with some Realtors based in Indiana and have property searches going, but I want to be sure I am set to submit offers when the opportunity arises. I have been working on sourcing deals in Lafayette as well, but the market is pretty thin here compared to the options even just on the MLS in Indy. I have 2 options on the MLS here in Lafayette that I know do not work, but there are 11 in Indy in my list of options at the moment just as an example.
Hi Ryan,
Are you looking to purchase this as a primary home?
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Lender
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@Ryan Ness house hacking means buying your own primary home. So, buying your own primary home should not be an issue at all - even if it's outside of a city. Have lenders told you that something is up? Feel free to reach out directly if you want to talk anything through. Thanks!
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Lender Texas (#392627)
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Quote from @Andrew Postell:
@Ryan Ness house hacking means buying your own primary home. So, buying your own primary home should not be an issue at all - even if it's outside of a city. Have lenders told you that something is up? Feel free to reach out directly if you want to talk anything through. Thanks!
I figured it wouldn't be much of an issue. I had one lender who was taking issue with anything that was greater than 1 hour away as they were concerned with my commute to my W2.
Quote from @Joseph Chiofalo:
Hi Ryan,
Are you looking to purchase this as a primary home?
Yes, it would be my primary residence. I have been trying to also take advantage of the Fannie Mae 5% down-payment option if possible too.
Hey Ryan! If you live in a duplex now and want to buy a single-family home then that is generally a good reason for the move. I'm assuming you used FHA on your duplex in 2021 so that 5% down conventional would probably be a good bet. Feel free to reach out though with any questions you might have.
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Lender New Mexico (#2450327), Ohio (#2450327), Arizona (#2450327), Maine (#2450327), Tennessee (#2450327), California (#2450327), Wisconsin (#2450327), Indiana (#2450327), and Michigan (#2450327)
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- 734-645-7722
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A 1 hour commute is not a problem but you may need to provide a letter of explanation. Occupancy fraud is the most common fraud committed in mortgage lending so underwriters look at things like distance from your job as a possible indicator.
Did you claim the your rental income from your current duplex on your taxes?
What type of property are you look for now, SFR or multi-unit?
I can lend in all 50 states and would be happy to help you figure out some options.
Quote from @John Burke:
A 1 hour commute is not a problem but you may need to provide a letter of explanation. Occupancy fraud is the most common fraud committed in mortgage lending so underwriters look at things like distance from your job as a possible indicator.
Did you claim the your rental income from your current duplex on your taxes?
What type of property are you look for now, SFR or multi-unit?
I can lend in all 50 states and would be happy to help you figure out some options.
As it has now been 2 years since the property has been rented, I do claim the income on my taxes.
I will be interested in multi-family, LTR opportunities that I can househack. If the cash flow of this property could get me beyond what is needed for my cost of living, my current W2 may not be a requirement, and I could make use of my Realtor's license in Indianapolis instead. I know the W2 may be needed for the approval, but I didn't know if there are other options if I needed to step away from the W2.
@Kerry Noble Jr Thanks for looping me in.
@Ryan Ness Interesting scenario, as I commute an hour every day for work also! I would be happy to connect and chat; however, any type of income producing properties would require 25% down. There are several areas in Indiana that are doing well with cash flow. Feel free to reach out if you want to chat.
Quote from @Ryan Ness:
Quote from @John Burke:
A 1 hour commute is not a problem but you may need to provide a letter of explanation. Occupancy fraud is the most common fraud committed in mortgage lending so underwriters look at things like distance from your job as a possible indicator.
Did you claim the your rental income from your current duplex on your taxes?
What type of property are you look for now, SFR or multi-unit?
I can lend in all 50 states and would be happy to help you figure out some options.As it has now been 2 years since the property has been rented, I do claim the income on my taxes.
I will be interested in multi-family, LTR opportunities that I can househack. If the cash flow of this property could get me beyond what is needed for my cost of living, my current W2 may not be a requirement, and I could make use of my Realtor's license in Indianapolis instead. I know the W2 may be needed for the approval, but I didn't know if there are other options if I needed to step away from the W2.
IMHO in order to secure the best terms, you'll want to stick with W-2 for the purchase. Once you've had a chance to see how the property performs, you can revisit the idea of giving up your W-2 job.