What options do I have to help qualify for bigger loan

[Christopher Montoya]

Hello guys,

I am planning on house hacking as my first investment. Ideally I would want to invest in house that is roughly in the 200k range in Sarasota, FL. I applied for an FHA loan through Wells Fargo since I've had a checking account with them for years. However, the banker told me because of my yearly income, I will only be able to afford houses under 100k. I have been listening to podcasts as well as reading and researching as much as possible. From what I understand, I can try to apply at other banks or somewhere else that might be able to help me more. However, I was also thinking about maybe teaming up with another investor but I don't know how that works. Any advice or info?

[John Kesner]

@Christopher Montoya

I would suggest calling all the banks (start with the local banks/crdit unions) in your area and see what they offer. Tell them what you want and see if you will qualify, just be honest about your financial situation. In my area there are many down payment assistance programs right now, maybe they have those near you too. The likely issue for you is going to DTI (debt to income) ratio. Most banks have a maximum they will lend based on your DTI. They do not want your mortgage payment to take up most of your income.

That's why I suggested a bigger multifamily, they are income producing, unlike a primary 1 unit home that is income consuming. You may be able to find a 4 unit and live in 1 where the income from the other 3 can cover most or all the bills and use a low down payment loan like FHA. That may be a way to get your foot in the door.

Another option is finding an owner willing to finance a property for you, no bank needed.