So my wife and I want to move to another state. We found a single family fixer-upper home that's a foreclosure for $50,000 that we really like, and are in the beginning stages of getting pre-approved. The issue is, we don't have jobs set up in that state yet. We don't want to rent there for 6 months because a $50,000 mortgage would be 3x cheaper than renting, there's hardly any homes for rent, and the chances of a home this cheap in our dream area coming into the market again at that time isn't guaranteed.
It also doesn't make sense that we would have to take out a loan for a vacation home because if we were somehow able to get this home, our plan would be that I go down there and live in it right away, so it would be my primary residence. My wife would stay and work at her full time job so that we have a stable income. Once I get a job there, then she would job seek until she finds a job there, then she'd quit her job and move in with me. Logically, I feel like it makes sense to me because we could easily afford the $400/month that home would cost us. But to a lender it doesn't, even if we were to have a stable income still? Is there a way I could present that to a lender that makes sense? Since she would keep her job but I'd be moving into it so it's our primary residence?
I understand that's an issue for a lender, but I'm curious if anyone knows a way around this that doesn't require putting 20% down? It would be our first home, and I plan on living in it right away so it would be my primary residence, not a second home, so we really wanted to take advantage of first time homebuyer perks and keep our savings at a really good place. Especially since relocating will also cost us money to move. We're trying to save as much money as possible.
So are our only options really:
-Put down 20% even though it's an FHA loan which only requires a 3% minimum?
-I move there now, rent a hotel for a month (which I looked and would cost $2000) and *hope* I get a job, the loan goes through in that time and I can move in all in that time span or else I'd be forking out thousands more?
-We try to take out a personal loan and pay the house in cash?
-We quit our jobs, move there and stay in a hotel while job hunting, then attempt to get a 6 month apartment lease. But by then we'd probably spend all our savings on a hotel and apartment, then we'd have to hope we could recoup enough to buy a house if one in that price range came up again which may not happen?
Anyone have any productive ideas?
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source https://www.reddit.com/r/RealEstate/comments/1hzhqvu/how_to_buy_a_cheap_home_in_a_state_i_dont_live_in/
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