Qualifying for a mortgage with large down-payment and low income.

[Stephen V.]

Hi BP! 

I've been a long time lurker and have finally come out of my shell for some advice.

I'm looking to buy my first primary residence for my fiancee and I to live in for the next 5-7 years (minimum). We're sort of in a unique situation here and we're trying to weigh out every option to make sure we go with one that makes the most sense for us.

Both my fiancee and I are graduate students, and will not have a significant source of income for another 4 years. Fortunately, we will NOT be graduating with any education-related debt. Earlier this year I sold an online company I started and have gained some capital in the process. We've always been renters, but are now looking to buy our first home. 

Our price range is between $280,000-$300,000. I want to put 50-60% as a down payment and finance the rest. The problem is there's barely any income. The only source of income we have is a rental property I own that is paid off and nets $950/m in revenue. It was recently assessed at $140,000. We both have credit in the mid 700s. We are also fortunate to have our parents chip in whenever they can, which has been a huge support for us. 

I'm looking for a way to finance ~$100,000 for our new home. Some options I came across were:

• Conventional Mortgage
• Seller Finance
• Private Loan
• HELOC on my rental property
• Have a parent co-sign 
• Wait till we have income 

We are paying $1550/month in rent. In 5 years, we'd be well over $100k in rent assuming price increases. Ultimately, would it make sense to buy a home this way or wait until we have income?

Thanks for hearing me out BP! Looking forward to reading some of your advice.

- Stephen