Home Buying in San Diego>Question Details

Monica, Home Buyer in San Diego, CA

How do I buy a house when I need a roommate?

Asked by Monica, San Diego, CA Wed Apr 9, 2008

I have 60K sitting in the bank, I make about 44K/yr.I 'd like to buy a two bedroom, and rent the other room out to my best friend. With my income alone, I can't afford anything nice. Is there a way to get a better house if you have a roommate??

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4
Hi Monica,

Definitely get in touch with a reputable loan officer. The key here is your debt to income ration in addition to your credit. Your debt to income ratio is the total of your monthly long term bills (auto loan, student loans, and including the mortgage payment you might be taking on) divided by your total monthly income. Most lenders will approve up to a 43% debt to income ratio and will not count any potential rents as income. So, you need to qualify for a loan based on your current income. The great news is that you already have a sizeable down payment and funds for closing costs!!

Definitely get with a loan officer, find out how much you can afford and then see what the availability in that price range is. There is significant opportunity to get a steal right now... and interest rates are excellent! I work with first time and lower income buyers all the time. Please let me know if I can help. I would be delighted with an opportunity to assist you and earn your trusted business.

Best of luck!
Tara
0 votes Thank Flag Link Wed Apr 23, 2008
I agree with all stated above. Contact a good lender. If you need solid references I have many. As well, I would advise making a connection with a Realtor now so you can get a feel for what is out there.
If I can be of any assistance let me know.
Alison Bell
619-384-6997
Web Reference: http://www.abellre.com
0 votes Thank Flag Link Thu Apr 10, 2008
Monica,
I agree that you should talk to a good lender and I can refer some to you if you choose. You could see if your intended roomate would be willing to buy the two bedroom condo or home in partnership with you. Then, both of your incomes and credit (both good and not so good) could be used to qualify. I would make sure you have a good written agreement prepared covering all of the potential issues like overnight guests, cleaning, utilities, chores, pets, taxes, etc. I would include wriiten rules for possible marriage of one or both partners, someone deciding the investment was not right for them, resale of the property, rental of the property to others, subletting issues, timeframe to sell or keep etc. I can recommend both good Realtors and attorneys for the agreement if you choose that route. Our site below has lots of useful buying information.
0 votes Thank Flag Link Wed Apr 9, 2008
Have you talked to more than one lender? I would advise speaking to a couple different ones to find out. Some lenders can only use certain programs and others may have a plan that you would qualify under. I would keep asking, or ask them what it would take to get you to be able to qualify. Most lenders are happy to help you through what needs to be done to get there.
0 votes Thank Flag Link Wed Apr 9, 2008
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