Home Buying in Weymouth>Question Details

Mbails, Home Buyer in Weymouth, MA

I want to move into a house and have two of my buddies pay me rent. how much money do i need to close on a 200000 house?

Asked by Mbails, Weymouth, MA Sat Mar 20, 2010

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Anna Brocco’s answer
If you haven't yet visited with any qualified loan officer(s), do so--see exactly what your budget can handle and check your credit score--he/she can best advise you on closing costs and other relevant information.
1 vote Thank Flag Link Sat Mar 20, 2010
Your buddies anticipated rent payments will not count as income to help you qualify for the loan btw. I know this doesn't make common sense but this rule has been in place for a long time...

But, if you buy a two-unit home or duplex then you should be able to use that rental income in place providing there is a lease agreement in place.
0 votes Thank Flag Link Thu Aug 14, 2014
You will need about 3% for a down payment and have had work history of 2years. If you would like to know exatly what you can afford try a mortgage calculator. if you have any questions give me a call
0 votes Thank Flag Link Sun Nov 6, 2011
MLS# 71135229

First of all you will have to qualify for a loan your self and if you rent to your friends its just a plus. The better the house the more rent you can charge. I have a house for sale for $269,900 buy owner /no realitor. IF YOU HAVE MONEY/GREAT CREDIT I would put 20% down so you don't have to pay PMI. Closing cost would be anywere from $2000-$4000 that a bank would roll into the morgage and your payments would be around $1200 a month. I would charge each of your friends $125.00 to $150.00 a week plus 1/3 utility.and you would be on easy street if you have great friend.
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0 votes Thank Flag Link Thu Sep 16, 2010
You might want to rethink that. If you do go ahead with those plans, then you better make sure that you can afford to make your payments on your own (as Robin suggested earlier). Make sure that you also have both of them to sign a lease, because doing so will make the eviction process--if things go sour--smoother.
0 votes Thank Flag Link Wed Mar 31, 2010
As was stated, you cannot use your buddies rent income to qualify for the loan. I have worked with some lenders in the past that will allow you to use that income to qualify for a refinance if you have a lease contract and you have reported the income on your tax returns. I am also a mortgage broker by the way. Most lenders will not allow you to do this and most people would not be very likely to report that income under that situation anyway.

As far as the what you would need for a down payment. You would need at least 3.5% if you wanted to go FHA plus any closing costs that were not rolled into the loan. You will want to speak with your Agent and your lender to work out these numbers to see if this is something you can afford depending on your situation. You will also need at least 60 days worth of reserves which amounts to 3 months of your principal and interest payments on the new loan.

So I would say to speak with a local lender and see what you can afford. If you are working with an agent already I am sure they can recommend some lenders to speak with. I would speak with a couple to make sure you are getting the very best deal.

Good luck to you.
0 votes Thank Flag Link Wed Mar 31, 2010
That depends on your credit and circumstances. If you are a first time homebuyer, you can get in with 3-1/2% down, and you can have the Seller pay some of your closing expenses.
If not and you have excellent credit, 10% is possible,
To get the best rate, 20% or more, and excellent credit.
If you are interested in foreclosures, you can click on the link below to see whats available anywhere in Florida.
0 votes Thank Flag Link Wed Mar 31, 2010
You cannot use your buddies rent to qualify for the mortgage, you would have to qualify on your own. The only way that could work is if you were buying a 3 family, which it doesn't sound like is your plan.
0 votes Thank Flag Link Wed Mar 31, 2010
Your first step should be to find an agent. Chances are that agent will have some steps for you to follow. One of their first steps should be to get you qualified either with a lender they are familiar with or help you find a lender. Once you are qualified the agent should be able to give you some guidance or ideas on your home buying needs.
LET THE EXCITEMENT BEGIN!!
0 votes Thank Flag Link Wed Mar 31, 2010
At a minumum if buying in Weymouth, you should have 3.5% down payment - so $7000.
Web Reference: http://savvyborrowers.com
0 votes Thank Flag Link Wed Mar 31, 2010
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