Loan 20% down but rental or purchase

There are a lot of variables to consider here but given the data you provided, adding your parents as a "non-occupant" co-borrower on the loan and getting and FHA mortgage might be the solution. You won't need the additional cash from your parents, you will be occupying the property after you purchase it and it is likely that your income will increase. The thing you may be missing in the equation of debts vs. bills is the question of "condo association fees" I have seen this be prohibitive to a marginal income buyer in the past. Also, if you parents co sign for you they are also responsible for the mortgage. If they are willing to give you the gift they will likely be willing to be on the mortgage, too. Be sure to make your payments on time and if you need a subsidy from them occaisionally then since they didn't give you the gift they might be willing to do so.

Those people saying it sounds doable are not being realistic. If you had absolutely zero other obligations, you would at best be at 42% DTI. You need to be under 45% so while you "could" do it, one would not advise it. I arrive at 42% DTI by being generous. I figured a 150K purchase with 20% down leaving 120K loan amount at 4.875%. Add in $50 per month insurance and $156/ month taxes and you have a monthly obligation of $841. That's not a very good way to start your financial future being "house poor". I suggest you wait a while until your income rises.

This is a good first step - getting some information. Congratulations on having completed your degree. you didn't mention if the low income includes a job in your field since you graduated or not, You also didn't mention if any student loans will be coming due. I'm not sure how you get a score of 777 without any debt- are you including payments for credit cards, even if you pay them off monthly? To answer your question, you might not qualify for a loan of $150,000 but if you do it might be tight. Your best option would be to get a mortgage loan pre-approval or two.

Oops - I forgot about the rest of your question. Yes, investment properties (ones you do not live in) would have a higher interest rate and other requirements. Don't expect to be able to use the rental income to help qualify you for a mortgage - you'll need a 2-year history of renting that property before you can do that!Good luck! Call with any questions.

Based on the info you provided it seems as if you would qualify for the loan with 20% down and you can possibly put less down. I'd be happy to assist you further. My Phone number is 310-406-3547brett@socalmortgage.comThanks,Brett

From what you describe it looks doable...conventional would be my suggestion as an owner-occupied property. Parents can "gift funds" without any issues. Feel free to contact me to discuss in detail. Regards...