Boosting How Much You Qualify for a First Loan

[Nathaniel Yip]

Hi Everyone!

I'm looking to get started into real estate in Sacramento, CA with a 1-4 unit with an FHA but since I don't have a ton of assets under my name or a particularly long credit history and the area is higher cost of living, I need to be able to qualify for a large loan (ideally $350k-600k). I checked on Better.com and don't qualify even above $200k yet.

Anyone have ideas or tips on what I can do to boost my credit history in order to qualify for larger loans? I’m considering co-signing with family or friends but I’d still like some options to be able to do it on my own.

Right now I’m playing with the idea of paying off my student loans with a short collateralized loan to show I’ve managed 2 separate loans within a short time frame.

Any ideas? Thanks!

[Melissa Roybal]

Hi Nathaniel,

I was in the same shoes as you twenty years ago when I graduated from college.  I lucked out (I say lucked out because I didn't know what seller financing was) by purchasing my first home in San Francisco using seller financing and I househacked it (didn't know what that was either) by renting by the room to my old college roommates.  I only say this because the lender at the time was the one who suggested it.  Sometimes talking to a savvy lender through your particular situation is really helpful, even if you are not planning on buying at this very moment.  You are on the right track, and that is the best thing you can do starting out.