Not approve due to low income

[Kathy R.]

Hello everyone,

I’ve been doing my research on and off. As I would like to purchase my first property to rent. However, I make 25k and was denied a 235k loan 🤭. I’m looking for a second job at the moment as a customer service working from home to increase my income and only have 5k saved.

Any suggestions? Should I just save more money if so how much? and should I wait for all this to come to past and than try buying again with an FHA loan? This whole denial has discouraged me...

Any suggestions would be appreciated.

[Aaron K.]

Yeah that is rough with $25k in income they probably want you around 30% DTI so if you had zero other monthly debt payments that would be a total mortgage payment of less than $700 per month which even at the best interest rates gets you maybe to $150k borrowed and with only $5k down you might just squeak in with the 3.5% down. However if your area is anything like mine anything worth buying in that price range is a condo with a big honking monthly expense of an HOA. When the pandemic passes I'd look at other potential job opportunities to boost your income.