First time home buyer's best mortgage options?

Question

I know there's options for first-time home buyers I just don't have them on hand. I would appreciate all of the knowledge and wisdom you all have to spare! A little more information, I work full time. I've had been a CNA for two years. My FICO score is 699. I have three children. I'm not married. I make less than 50,000 a year. Any more information that could help you help me please let me know!

Cassi Justiz · Answer

I would talk to at least 2-3 local lenders including a mortgage broker in the area you plan to buy in. Typically these will be your local banks or independent mortgage companies. If you have an agent, they can usually recommend some people. If you haven't found an agent yet, you can probably find one through the forums. Check and see if there is a local forum in the area you are looking to buy in. You should be able to get some good local recommendations on both agents and lenders.

Chris Risi · Answer

Hey @Tiffany B Alexander, have you looked into FHA loan programs? They can be pretty powerful...

Jaysen Medhurst · Answer

@Tiffany B Alexander, you're biggest challenge is going to be affordability. With your salary (and assuming no other outstanding debt) you'll want to keep our mortgage payment to ~$1400. That's 35% debt to income (DTI). FHA will let you go a little higher, but avoid it if you can. That works out to be a home in the $300k range (assuming 3.5% down). Not a lot in your area at that price.

I would look for a multi-family property where you can rent out the other unit(s) and put that money towards your mortgage and other expenses. I saw this, this, and this. Yes, they're in the $450-500k range, but with the other unit renting for $1500-1800 you could cover a huge chunk of the larger mortgage. Of course there will still be other expenses (taxes, insurance, repairs, utilities), but this is a viable strategy. Ideally, you find a 3- or 4-family property. This will bring in more income than a duplex.

First time home buyer's best mortgage options?

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