That being said all we need is a two year history. College is fine as part of that history. FHA is probably the loan for your son for a few reasons. They are more lenient on credit scores and offer a low down payment. They are generally OK with a shallow credit history but do want to see certain minimum scores. As far as being eligible is all comes down to his debt to income ration. You take his gross monthly income and divide by his monthly debts. You add in anything on his credit report and of course the proposed housing payment. You can get two numbers, one will be the house payment or front end and the total or the back end. We want to make sure you can afford the house and bills and also wonâ€™t be house poor. If you would like to see some numbers please call or email and we can walk you thru what you need to know. I also have an excellent first time home buyer grant that can give your son up to $7,500 in closing help. Once he is ready I can also give him a few name of local realtors that know the market and specialize in first time home buyers. They can advise him of whether he should buy a condo or townhouse. I think it might depend on where he buys. I am no realtor but I also have my opinions, there should be alot of questions asked before answering that one. My last advice would be to talk to 2-3 lender and also 2-3 realtors and see how things go from there. Hope this helps please let me know if you need more.
If it were my child I would recommend that they rent for a year and become familiar with the area. DC is a great place to live with many diverse areas to chose from. Young people enjoy Metro access and areas with good nightlife within walking distance. There truly are a dozen good choices, it will depend on what is important to him.
Plus he needs time to make sure that he likes his job. A house would be pretty big anchor. Rent, knock down the student loans, see what area suits him best and go from there.
I am a sales agent and that is how I earn a living but I won't recommend that someone buy just to make a commission.
By your post, it appears that your son is interested in buying in Eckington, in DC. While buying or renting close to his work in Arlington may be more convenient, if he really wants to live in Eckington, I would suggest starting there. The home prices would be quite a bit less expensive and the District just recently renewed their first-time homebuyer's credit of up to $5000, which should be taken into consideration when obtaining a mortgage. Also, if he is working in Arlington, the commute from Eckington would be going against traffic, thus making for an easier commute both ways.
When getting your mortgage, I would advise going with a local lender, not a broker. Brokers will find you a lender for a fee, something you can do on your own for free, and that fee gets added into your costs. If your son's only real debt is his student loan, he has good credit and a decent salary, then, in my experience I would say he probably won't need a co-signer. It's also going to depend on the sales price. I have a list of local lenders I can recommend who can answer all of your questions.
The difference in rentals between the two places, Eckington and Arlington, is there are more condo rentals available in Arlington, whereas in Eckington you're looking at house rentals and there aren't nearly as many available. Studio and 1BR rentals in Arlington typically run $1300-$1500. I found a couple of houses in Eckington with 2-3BRs for around $2500 a month, so he'd probably need to get a roommate to help out with rent.
I would be happy to help your son decide which will be his best way to go, rental or purchase, and where he would like to be, DC, Virginia or even Maryland, as I am licensed in all three. We can go see some properties and see which neighborhood he likes best. Feel free to contact me anytime.
Keller Williams McLean
Licensed Associate Broker
Accredited Buyer Representative
GREEN Designated Agent
William Raveis Legends Realty Group
As the other agents have said, whether your son can qualify for a mortgage depends on his income, credit score, and ratio of debt to income. He should talk with a local lender as soon as possible to get an answer to your question and also to find out how much of a mortgage he can afford. Once he receives that info from a lender, the real fun (the home search!) can begin in earnest.
I have a number of great lenders that I work with and would be happy to pass on their information on to you.
Feel free to have him give me a call.
Long & Foster Real Estate Inc.
4400 Jenifer St NW
Washington, DC 20015
There are MANY great neighborhoods in the DMV area for young professionals! Depending on what your son likes to do (wants to be close to restaurants, metro, bike paths, etc) there is a great neighborhood and style of home waiting for him. As a young professional, I love Arlington, and there are some great neighborhoods in DC as well! I live in Columbia Heights, where I can walk to the metro, grocery shopping, and restaurants in my reach.
Please feel free to contact me to discuss some more!
Lead Agent, Nash Holdings
Exit Elite Realty
Congratulations! Columbia U is an awesome school.
This is a great question. I get this a lot from parents of recent or soon to be graduates. The first thing to consider is the income side of the equation. Before the student loans/debt is even assessed, the Lender will want to see a solid work history of at least 2 years. It doesn't usually have to be 2 consecutive years with the same employer, though that's helpful, but it at least has to have been long enough to produce 2 tax returns.
Now if that's good to go, then the Lender will consider the DTI (Debt to Income) ratio in determining if He's mortgage eligible.
There are a few details you would want to consider. Feel free to give me a call to further discuss. I'm happy to connect you with my Lender partner to answer your questions in detail.
Hope this is helpful!
Keller Williams Realty
It really depends on his price point, his credit score, income and where he is looking to buy. Not all neighborhoods are priced the same for 2BR/2BAs, he has to think about what he wants/needs that fit into his price range. I would strongly recommend he talk to a lender, and I can recommend a few, so he has a sense of what he will qualify for.
You need to do that before you start looking at a house so you know your price range, then you can comparte each so you know what you can get for your money.
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