I was interested in buying a multifamily brownstone in Bedford-Stuyvesant area after I graduate from college but my credit rating is a 630

Asked by Antonio Johnson, Newark, NJ Thu Apr 11, 2013

How can I buy a Brownstone in the Bedford-Stuyvesant with a credit rating of 630. Im 22 and Im about to graduate from college, and I was thinking of investing into a multifamily home in Brooklyn. I have a single family home valued a $250,000 it's almost paid off and I want to convince my parents to downsize and get a multiunit home. is there a relator from the Bedford-Stuyvesant area I can get in touch with? What is the return on investment for Multifamily properties?

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Anna M Brocco’s answer
Anna M Brocco, Agent, Williston Park, NY
Fri Apr 12, 2013
Before begiining your search--be aware that a mortgage pre-approval letter is required in order to determine your price range and for any offers to be taken seriously, therefore visit with any licensed loan officer; thereafter contact and interview a few local agents from different realty offices, then choose the one you like best....
1 vote
Kathryn Lilly, Agent, New York, NY
Fri Apr 12, 2013
Any bank looks at income, assets (Cash Down) liabilities (student loans and other depts.) as well as income.
As you are still in school, unless you have independent income it may be a little premature to be buying another house just yet.
I admire your drive, but take it slowly; graduate, get a job, sell your current house once you have worked out where in the world your career takes you after graduating, not yet because Real Estate no matter where it is looks like it will appreciate at a faster rate than what Banks are currently paying in interest. And lastly use the time to work on your credit.
There will always be a house to buy when you are ready.
Kathryn Lilly, Broker
Realty on the Greene, LLC
1 vote
Jackcohen607, Home Buyer, New York, NY
Thu Nov 17, 2016
Hey Antonio did you get the house?
0 votes
Abu Musa, Agent, New York, NY
Fri Apr 12, 2013
You may talk to a mortgage banker about your mortgage options.
0 votes
Mitchell Fel…, Agent, Brooklyn, NY
Fri Apr 12, 2013
Dear Antonio:

It is hard to answer your question without knowing how much of a down payment you will be coming in with and what type of income you have or will have. Go to a mortgage banker and get yourself pre-qualified. With regard to your credit report, there may be simple ways to increase your credit score if need be or you may have to wait. Also, given that you are a student, you may need to get yourself a co-signer which can help if there is a shortage on income.

The return of investment all depends on how much money you put down in the first place. The bottom line is that income producing properties have so many benefits and it is rare that I have witnessed someone regretting the purchase of a multi-family home!

Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665/ Cell: (917) 805-0783
Email: MitchellSFeldman@aol.com
0 votes
Javier Menes…, Mortgage Broker Or Lender, Melville, NY
Fri Apr 12, 2013
Antonio, my advice is to meet face-to-face with a Loan Officer and take a look at where you stand today and where you need to be to qualify. I often find that borrowers with lower credit scores might have to simply reduce balances, or something like that in order to significantly increase your credit score. Not to say that you couldn't get a loan with a 630 credit score, but if you have some time to work on your credit scores and also lower your monthly debts (assuming that's what you need to do), then why not? Put yourself in a better position to qualify for a mortgage as you can be eligible for better rates with a higher score.

The pre-approval process includes us reviewing your income documents, credit and bank statements. In your case, being that you own a house, there might be additional things we'd look into. Another thing is your employment situation and how it will change from today to after you graduate college.

There are many Realtors you can connect with here in Trulia, but I really feel that meeting a Loan Officer should be step #1. Depending on your situation, you might find that waiting until you graduate and begin earning more money will make you more qualified to buy another house.

Good luck!

If my response was helpful, consider clicking BEST ANSWER!

Javier Meneses
Senior Loan Officer
NMLS #23130
310 Crossways Park Drive
Woodbury, NY 11797
(516) 606-964
0 votes
Luke Constan…, Agent, Brooklyn, NY
Fri Apr 12, 2013
Good morning Antonio,

The average price for a brownstone in Bed stuy has recently went over the million dollar mark, It very hard to find any for less. As for the return on your investment, that would depend on the amount of money you spend, to the amount being brought in, to the cap rate.

My best advice to you is to speak to a mortgage broker, raise more capital and keep your credit exceptional. The mortgage rates are starting to go up and the majority of upper Brooklyn is being outpriced to the average buyer.

I suggest looking for other venues in the Brooklyn area based on the 250K you have to work with... Give me a call anytime.

Luke Constantino
Keller Willams Real Estate
Direct: (212) 300-3919
0 votes
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