Moving in with family to save money for home purchase

nykorh · Joined: 05 Aug 2008 Posts: 5 3.31 Dollars($)

I have a hypothetical question:

I have the option of moving in with a relative for the next 6 months to save a large chunk of the $1500 per month that I pay in rent every month to put towards debt reduction and additional down payment savings.

Other than the obvious reasons I might not want to do this, how would this look to a lender when I go to apply for a loan? I am specifically looking to qualify for an FHA 203K Loan, and I've been told they require 12 months of on time rental payments to qualify.

Would this be waived if I haven't had to pay rent for the last 12 months?

helping_user · Posted: Mon Aug 11, 2008 1:37 am Post subject: RE: fha 203k and rental payments

Welcome Nykorh.

Whether the lender will waive the criteria for 12 months of rental payment will depend upon his lending policies. An FHA 203k loan is meant for those who look towards buying a home that needs repair. Are you trying for something like that?

Thanks.

Guest 0.10 Dollars($)

Yes I am. Thanks for the info.

chrisburns · Posted: Tue Aug 12, 2008 9:35 am Post subject:

I'm sure that with a good letter of explanation and a letter from you're family to back it up you can still qualify for the loan assuming you meet the other criteria.

I have done this before with FHA and it has been accepted.

gmakerley · Posted: Wed Aug 13, 2008 7:58 am Post subject:

i'm in agreement with chris. living with family for this 6-month period ought not to hinder you. you can still rely on your previous landlord for a reference letter, and unless that was a really short-term situation, you should be in a reasonable position.

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