I'm 20 years old i am saving money for a down payment on a home. My plan is to do this with two years time: buy a home valued at 250k-300k and put it up for rent as soon as i can so the home can pay itself without me putting my income into the propert and within time i can sell to make a profit. I know a down payment for a home here has to be about 20% which is a lot of money.
but ive done my research and found that first time home buyers can pay as little as 5% down payment for a new home?
*5% of 250k = $12,500
*5% of 300k = $15,000
*my income is 30k a year at current job.
*in the process of being hired by Socal Edison
and i will be making starting 67k a year without overtime.
*my credit is average(630-650) do to having a credit for such a short period of time.
and yes i do have someone that will co-sign for me.
My main questions are should i do it? Or can i do it? Without putting myself at risk for debt or in a financial struggle? Is it even possible for me to obtain a loan? What advice does anyone have that'll help me?
Added (1). thank you all for answering! Learned something new.
Say i buy a home with the intent to rent it in the future. So i would actually live on the property to avoid the outrageous 25%-45% downpayment. How long before i can rent it out?
Read more: Information for first time home buyer in california?
