1st time homebuyer and investment loan later on

AzCreditGuy — Sat, 27 Mar 2021 17:15:53 GMT

So I've come into a situation where I would be getting a 1st time home buying loan with a possibility of closing cost assistance of up to $20k in a zip code I am thinking of buying. Property would be a new home build and cost would be $200k. I have the opportunity to put down $125k on the loan within the next 7 months from a family home sale that will be inherited. Leaving the loan at under $50k t $60k. At that time I would think about maybe taking out another loan for an investment property for $200k to $400k. Credit scores are 800+ Mortgage scores range from 770 to 807. Debt is at 2% and my income $95k a year in the healthcare industry. Is my plan too ambitious or?

Re: 1st time homebuyer and investment loan later on

dragontears — Sat, 27 Mar 2021 17:33:04 GMT

@AzCreditGuy wrote:
So I've come into a situation where I would be getting a 1st time home buying loan with a possibility of closing cost assistance of up to $20k in a zip code I am thinking of buying. Property would be a new home build and cost would be $200k. I have the opportunity to put down $125k on the loan within the next 7 months from a family home sale that will be inherited. Leaving the loan at under $50k t $60k. At that time I would think about maybe taking out another loan for an investment property for $200k to $400k. Credit scores are 800+ Mortgage scores range from 770 to 807. Debt is at 2% and my income $95k a year in the healthcare industry. Is my plan too ambitious or?

I am a little unclear about why you would pay off that much of the loan on your primary, unless you get a loan that will recast it is not going to change your DTI. You should double check that the assistant program doesn't have restrictions on the length you must have the current mortgage (normally an issue with selling but it is smart to double check).

For the investment property, be prepared to have 25% down and be happy if you find a lender that will do 20% on your first investment property. Also you will likely need 6 months of PITI as reserves. Lending on investment property can be more focused on how good the "deal" is rather than your personal information but as a first time investor lenders are more cautious.

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1st time homebuyer and investment loan later on

Re: 1st time homebuyer and investment loan later on