First Time Buyer, Early 20s Help!
I am in my early 20's and really want to start researching what steps I need to take to becoming a homeowner. I really am in the dark here, but am feeling around so I can get on the right path. Currently I work abroad as and English teacher in South Korea. I would love to get to the point where I can buy property in the US and rent it out while working abroad. While my monthly salary is very low (approx. $1,816 at the current exchange rate) due to the cost of living and the fact that my company pays for my apartment, I am able to save a considerable amount of my monthly income. I save at least $1000 a month. The thing is, I look so bad on paper with my low salary, but really within 2 year, I will have probably saved at least $20,000 for a down payment, which I don't think is too bad. The thing is, will a bank give a loan to, firstly, someone who is working abroad and secondly to someone who has such a low monthly income even if I can actually give a large percent of it to mortgage payments? Thanks so much for your help! by atlantagirl from Atlanta, Georgia. Nov 30th 2009
Leo Harvey (LHARVEY)
#6 ranked lender in Pennsylvania - 149 contributions
Hi Atlanta: Hopefully I can help with your questions. First, the fact that you are working out of the country is not an issue as long as you are a citizen and have an established US address in the past. As an investor there are a couple of programs available that will fulfill your needs and get you into a property with 20% down. Guidelines for investor loans are very tight right now. You would need to qualify based on standard income and debt ratio guidelines. Your credit would have to be very good, 700+ FICO and debt load very low to make this work but it is not impossible. Based on your given income number you would be able to qualify for approximately $900 monthly in total debt payments. If you have no other monthly payments which carry a balance you can figure the entire amount for your PITI (principle, interest, taxes and insurance. As an investment property some of the rental income could be used to offset expenses of ownership. That payment amount would put you in the $100,000 to $150,000 mortgage range depending on the final program that you qualified for. If you are not a citizen or legal alien then it will be virtually impossible to get a mortgage loan from the standard lenders. Since you state "working abroad" I am assuming you are a US citizen. Feel free to contact me via e-mail if there are other questions. lharvey@advisorsmortgage.com.
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