Here’s my situation: I am looking at a few 3 bedroom homes for buy. I would be looking to go the FHA route since I am a first time home buyer. I calculated out what the mortgage payment per month would be (including principal, interest, taxes, insurance, HOA, and PMI) with a 3% down payment, even though I would probably wind up doing higher than 3%. The payment per month came out to be around $2400. Here’s the thing, based on my income, that would not qualify me for a mortgage. I can afford $1200 per month, based on the 25% rule. My plot is to rent out the other 2 rooms to my 2 best friends for $600 a month each. My question is, if I have my 2 friends sign a lease ahead of time which says I would be receiving $1200 a month from them, and I take that to my mortgage broker, will that help me qualify for a loan? Or will lenders only lend on mortgages in which you can afford the entire thing regardless of any potential rental income? Is there a difference between FHA loans and conventional loans in this regard? Any help would be greatly appreciated. Thanks.
Ok, so it’s a no go with an FHA loan according to the first answer below, what about with a conventional loan? Credit score is excellent, so I guess there isn’t any real reason to go with FHA other than I’ve heard it lowers some premiums for first time buyers. Also, can I still do a 3.5% down payment with a conventional loan?
Posts Tagged ‘pmi’
Can income from renting out rooms help you qualify for a larger FHA mortgage?
Monday, March 1st, 2010What are the four elements of a mortgage payment?
Wednesday, February 3rd, 2010Having a hard time finding the answer, maybe someone knows or can provide a source for the answer?
The options are:
a) principal, interest, tax & insurance
b) principal, rate, time & interest
c) title, closing costs, closing statement, & the deed
d) ARM, PMI, VA & FHA
My instincts tell me b, just cause it seems like these would be the essential elements, but I’m not finding this to be right anywhere…
Tags: closing costs, elements, essential elements, FHA, FHA Mortgage, four, hard time, instincts, insurance, interest c, interest tax, mortgage, payment, pmi, principal interest, tax insurance, time interestIs An Interest Only Loan A Good Thing When Renting Out A Home …
Monday, December 7th, 2009Posted by FHA Mortgage . December 6, 2009.
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Is An Interest Only Loan A Excellent Thing When Renting Out A Home …
4 F's – Fannie, Freddie, FHA and FDIC : Straight Talk About …
Saturday, December 5th, 2009FHA is very close to running out of money and, as we discussed earlier this week, looking at a variety of was to improve performance including tighter restrictions, larger downpayments, higher PMI costs etc. and the FDIC
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4 F's – Fannie, Freddie, FHA and FDIC : Straight Talk About …
If I Have A Fha Loan, Would I Still Have To Pay For Private …
Saturday, December 5th, 2009Yes you do and yes you are. FHA loans with small down generally do PMI in two ways.
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If I Have A Fha Loan, Would I Still Have To Pay For Private …
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