First Time Investment Property

[Danielle Hammond]

I need some help here guys! I found an investment property/opportunity to get me started. I've got the business part of everything down, but I struggle with the financial side of things. After reading Brandon Turner's "Book On Investing in Real Estate with No (and low) Money Down" I decided to look into FHA - owner occupied, multi family home loans. I met with a banker (yesterday) and we determined that the asking price was just a little out of my price range (due to student loan debt). Today they dropped the price by $15,000 after only showing for 30 days. I spoke with the listing agent and she told me if I act fast I could offer about $10,000 less, putting it in the $130,000 price range! Which for the market and area is a GREAT deal. The home is in great condition and only needs a nice clean up and paint job, possibly carpet in the rental unit, and 2 refrigerators. The location is perfect, and finding a good renter wont be an issue. The rental unit would cover 100% of the mortgage payment.

Here's where my problem comes in. My credit score is 11 points shy of the requirement, (with my bank) and my income tax / down payment money wont be here until March or April. 

Here are my questions! Do different banks ask for different credit scores for FHA loans? Should I try shopping around to see what other banks offer, or is it the same for all banks? Do I have to have the down payment the day of my offer, or can I hope for slow processing times to get all the money together? How else can I find $5,500.00 a few months in advance? There must be a few options for me to make this happen, before I lose the deal. My plan was to wait until Spring to start my search, so I wouldn't have these problems, but I really don't think I will find a deal like this in Spring.

Any suggestions or advice?!! :) Thanks. -Danielle