I was in the construction business since I was 17 including those college years.Since I was in Texas and planned on staying there I found out that I was qualified to take a real estate broker license test without taking anything extra so I got a license, in 1980.  

When you have (by appointment only and buyer needs to qualify before showing) that gets rid of a bunch of them.  

Assumptions included an 85 down payment for someone qualifying for an 30 year FHA loan at 5%.

I understand that this is an investor site for investment opportunities but because I have read so many scary reviews about companies that RTO clients have fallen victim too, I thought that this may be a good place to inquire.Although I will remain in the same line of work, I know that qualifying with a 2/3 salary decrease and new job my debt to income ratio will not allow me to outright purchase something and I haven't lived in an apartment in over 20yrs.

I have clients that own 1 to 5 vacation rentals here on Mau i and once you hit that threshold of 5 you may be put into a commercial status (5+ units), so qualifying can be a bit more difficult, looking at such things as:What has that person owned and what has been their management experience collecting rent and managing propertiesThe borrower's credit score, income and personal and business tax returns will be considered along with two years' operating statements and a current rent roll for the property.Also important are property metrics, such as: Net operating income: The annual income, minus expenses that a property generates from its operationsDebt service coverage: Measure of cash flow relative to debt payment obligationsLoan-to-value (LTV) ratio: A measure of the loan amount relative to the value of the propertyThe property has to service its debt at a comfortable marginOf course each lender can be a bit different, so it's good to shop around if needed.I hope that helps.BTW - what do you consider big money?  

There needs to be enough equity and monthly cash flow (whether from real estate or from your full time job) to qualify for this type of financing.

If they don’t, then you’re rewarded for your risk in carrying that paper; you’re now getting 12% for holding that paper, and there is no balloon.ABILITY TO REPAYThe second category requires you to determine the buyer’s ability to repay, but the rules and the regs don't specify any standards for doing it (such as the qualified mortgage standard, a 43% debt to income ratio, etc.).

Don't settle for a less than qualified applicant though.

If the first person applied first and qualifies nicely, go with that person.  

Here in Ohio you have to disclose only if you've had your property inspected for mold by a qualified mold inspector and if so, what were the results and remediation taken.