Choosing how to finance my first house

[Silas Lowenthal]

Hey Everyone!
I have recently found that I want real estate to be my primary investing option. My first step is to buy a house and I want to house hack by purchasing a home and having my friends live with me. They would pay me rent, which would pay for the mortgage. However, it is hard for me to finance a house independently at 22. I am a full-time student with a full-time job and am saving as much as I can. Should I cut my friends in and they can help pay a down payment? Would this even make me money in the long run if I just had to pay them back? 

Does anyone have any advise?

Thank you!

[Katherine Serrell]

Hi Silas. Congrats on getting started! That's how I got started as well.

Step #1 should be contacting a local lender. You can find references on BiggerPockets. There are many low down payment options available - especially for first time homebuyers. 

For example... I am an agent in Raleigh, NC and I recently had a client close on a 310k home and her cash to close was less than $2,000. It can be done. No one via the forums can give you specific, detailed answers without knowing the whole picture such as credit score, income, DTI, etc. To explore your options, you should reach out to a local lender.

Regarding looping in friends.. I would definitely not go that route for your first property. That could complicate what should otherwise be a very straightforward loan. Your friends would also have to sign a gift letter stating that they do not expect to receive the money back. 

Hope this helps! If you have any other questions feel free to reach out.