Rule #1:
Take advantage of any and all first time home buyer
financing or assistance programs. This varies by communities & your qualifications but you do not want to miss out on something for lack of doing your homework.
Start looking asap.
Take advantage of any and all first time home buyer
financing or assistance programs. This varies by communities & your qualifications but you do not want to miss out on something for lack of doing your homework.
Start looking asap.
For example: We have forgivable grant monies & gifts here in St Louis. Young & earning little? Bank of America has a 100% financing program with income qualification & flexible credit standards. Local credit unions often have 100% loans for credit qualified first time buyers
Rule #2:
Hack that first house!
Residential loans are for 1 to 4 unit buildings. Either rent rooms in a house or units in a building to supplement or cover your expenses. Better yet: cash flow on your house & put in the asset column.
Hack that first house!
Residential loans are for 1 to 4 unit buildings. Either rent rooms in a house or units in a building to supplement or cover your expenses. Better yet: cash flow on your house & put in the asset column.
Rule #3
Do not buy at the top of your market.
Find an added value situation
Example: In St Louis City off street (especially covered) parking adds a ton of value. If you buy a home with no parking but alley access & ADD the parking pad/carport later it is a BIG equity play.
Do not buy at the top of your market.
Find an added value situation
Example: In St Louis City off street (especially covered) parking adds a ton of value. If you buy a home with no parking but alley access & ADD the parking pad/carport later it is a BIG equity play.
You can also buy a mechanically updated property that could use some cosmetic & amenity boosts.
IE: add in-unit stackable washer dryer, paint walls neutral, paint cabinets & upgrade counters & hardware
OR go for a full rehab and massive equity with a 203(K) construction loan.
IE: add in-unit stackable washer dryer, paint walls neutral, paint cabinets & upgrade counters & hardware
OR go for a full rehab and massive equity with a 203(K) construction loan.
Rule #4
Find the right Realtor: Your agent needs niche knowledge in your neighborhoods, the ability to pull good data; & good house hack game. The right realtor MAKES you money. If you are in a low price range any additional fees needed for compensation are 100% worth it.
Find the right Realtor: Your agent needs niche knowledge in your neighborhoods, the ability to pull good data; & good house hack game. The right realtor MAKES you money. If you are in a low price range any additional fees needed for compensation are 100% worth it.
Rule #5
Find the right lender. Know your credit score range & history and prepare intelligent questions. Money is a product that costs money like any other: fees, rates, strategy all play a part. Do your homework. Rules 4&5 are hand in hand.
Find the right lender. Know your credit score range & history and prepare intelligent questions. Money is a product that costs money like any other: fees, rates, strategy all play a part. Do your homework. Rules 4&5 are hand in hand.
Rule #6
Know your contract in your market. Read it. Understand the steps in the process. Ask your professionals the questions.
Lay out the strategy.
Know your contract in your market. Read it. Understand the steps in the process. Ask your professionals the questions.
Lay out the strategy.
Rule #7
Do NOT start shopping until you complete 1-6
The right opportunity may turn up Day 1 or Day 100: either way you need to be in the power position as a buyer: Be ready and able when you find the one.
Do NOT start shopping until you complete 1-6
The right opportunity may turn up Day 1 or Day 100: either way you need to be in the power position as a buyer: Be ready and able when you find the one.
Rule #8
Stick to the plan. Do not allow emotions to rule.
Trust that it will work out and be willing to walk away; but also be realistic about your buying power & know the real values. (This is not hard when you have a good team)
Stick to the plan. Do not allow emotions to rule.
Trust that it will work out and be willing to walk away; but also be realistic about your buying power & know the real values. (This is not hard when you have a good team)
Rule #9
After you live in your first property for the time frame required by law and/or any grant forgiveness rules: repeat the process with another owner occupant financing option.
So long as you are mobile, continue to play this game.
After you live in your first property for the time frame required by law and/or any grant forgiveness rules: repeat the process with another owner occupant financing option.
So long as you are mobile, continue to play this game.
Fannie Mae allows you up to 10 total individual loans (as owner and/or investor) with more favorable terms like 30 year fixed rates. Take advantage of this. Start with the house hack & ten 4-unit buildings will give you the 40 doors you need for financial freedom.
This is why owner occupant mortgage financing is so powerful
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