You love your family, but do you want to live with them forever? Over the years, often because of the previous downturn in the economy, many younger adults have moved back into or never moved from the parents house. Getting out of the parents house can be difficult for reasons such as the following:
- “I can’t move because I don’t have a down payment”
- “I will never be able to buy because of my credit problems”
- “A mortgage company won’t approve me because I live with family & have no rent history”
- “I have previous employment gaps and don’t I need to be on my job 2 years?”
- “I just don’t know what the first step is to buy a home”
Break free of your fears and make the move now to give yourself a place of your own to call home. Plus give your family their own space back. It is easier than you think!
How to Move Out of Your Parents House- Path to Home Ownership:
1. Lack of Down Payment – No Problem
Too many people hear the negative TV news, internet articles, or other naysayers saying how you must have perfect credit or 20% down payment to be able to purchase a home, but this is not true. These days there are several low to no down payment mortgage products available and it is not even necessary to be a first time buyer. Veterans and service members are able to use a VA Home Loan to purchase with 100% financing and can often purchase a home with a second VA loan while keeping an existing one.
Much of NC and SC properties qualify for USDA home loans which is a great product that allows for no money down. Then, there are FHA purchase loans which are flexible on down payment sources (learn more here) and even Conventional loans which allow for as little as 3% down payment. The down payment can even be a gift – see how
2. Imperfect Credit – We can help!
Too often we see applicants that either are too scared to know the details of their credit reports or are afraid to re-establish new credit because of a previous bad experience. We can assure you that the best thing to do is find out now how your credit looks. Then we can either tell you about an approval or recommend steps to take in order to be approved in the future.
Additional Credit Tip Resources:
- Limited Credit Experience and How to be Prepared Up-Front for a Successful Mortgage Approval
- I Want to Buy a Home in a Year or Less – Establish Credit Worthy of Mortgage Approval
3. No Rent History – Not always required!
Believe it or not, rent history is not always a requirement to purchase a home. Now having a good rent history, which means no 30 day late payments in the last 12 months, helps tremendously in getting approved but it is not always required. Basically the higher your credit score is, the better chance you have of not needing to prove rent history and sometimes particular program approvals will not require rent verification. So living in your parents house doesn’t mean you can’t buy.
4. Previous Employment Gaps – Ways to fix this!
We hear buyers all the time think that because he/she has not been on their current job for at least 2 years, then we can’t count their income. This is far from the truth in most cases. For instance, a buyer could have been on a previous job for a period of time and just started on a new job in the same line of work for more money or other beneficial reason which would be perfectly acceptable. There are even times where a buyer may have employment gaps but have since been on a new steady job for 3, 6, or more months. With a good explanation and a solid verification of employment on the new job, this can often work out!
5. Misunderstandings about How to Buy a Home – We Got This!
Your first step is to consult with an experienced mortgage lender to review your credit, discuss your goals, and determine which mortgage product(s) match your scenario. Additionally, finding a Realtor that is experienced in your local market that is also a great listener, understands mortgage product requirements, and can explain the real estate process and paperwork well. Check out this article about “Why Using a Good Realtor is So Important“.
With historically low mortgage rates, rising home prices, and a solid job environment, let’s see if owning a home is right for you now.
Author: Russell Smith
Team Move OVM Financial loan officer success is Russell’s primary focus. He provides the tools and techniques he used as a top producing loan officer. Additionally he offers the Team Move OVM Financial Agent Training Program. Sharing is so important to Russell so he works diligently to be a resource to loan originators and Realtors.