Help with a Lending Option

[Kate Barry]

Hi all -

I'm in a bit of a strange situation, and we really want to buy a single family right now but I am coming into road block after road block. Thought this forum might be the best place to try and bounce and gather ideas.  

The Story:

When the pandemic hit, we moved out of our house-hack multi family to live with my grandmother who needs full time care. We rented out our apt for STR. Long story short - Oma needs a lot more care than we can provide, and we need to move back to our own place so a full time nurse can move in here. The kicker is we have no unit left to move to, all the units are rented out, and quite honestly we don't really want to move back there because now our 4 unit MF is cash flowing beautifully.

The Goal:  

Purchase a home that will be our primary residence and has an income-generating aspect to it.  The current home we are looking at is a single family on 11.5 pastured acres with a 5 stall heated horse barn.  Rough-boarding alone we could generate $1500 per month income.

The Situation:

I have poor credit, 614 but working on it and hoping to have it at 650 by the end of the year.  I earn decent income - around $5400 net per month from real estate commissions. We have income from our 4 unit multi family that grosses $5,000 monthly and after regular expenses and maintenance and paying our mortgage, we cash flow $500 per month. We have done significant cap expenditures on it this year though, which I'm sure will hurt us.

$6,000 to fill in the old pool, $5400 to repaint the garage and get our EMP up to code, $11,900 blown in-insulation. We were thinking about replacing the furnace and adding a boiler this year as well, since its at the end of its life and heating a 100 year old multi family in Vermont is not cheap nor easy.  $8,000.  All in $31,300 in cap expenditures this year....

We Airbnb our studio condo that is at the base of a ski resort and have been renting that to traveling nurses on the off season. We own this outright, no mortgage, just paying HOA and expenses which are pretty minimal. We gross $1000 per month off-season, and gross $5,000 from Dec-April. Expenses vary for those months but generally speaking we are cash flowing $600 off-season and $2500 in-season.

I have large and cumbersome student debt - $125,000 federal student loan debt.  Non in forbearance as far as I know, I recently paid off a $5000 debt to George Washington which I believe was in collections, I only paid that off in May of this year. I pay around $250 per month towards the loans.  

Husband  - Great credit, he's above 700 - No income, stay at home dad. - No debt- Has a secured credit card he keeps at 30%

Currently we are living rent free with my grandmother, taking care of her during this pandemic crisis. But this is a temporary situation for us and we are wanting to figure out how we can buy a single family home in Vermont.

Our multi family we have a 20 year mortgage on at 5% interest with seller financing.  Monthly payments are $1979.  The principal balance is $267,000, current market value is $430,000.  I cannot qualify for a refinance or a cash out with my current credit score, even with the income from the rental.  The problem is my husband has the credit score, but not the income.  

So that's our story.  The property that we want to buy is listed at $230,000.  

How do we do this?