Got accepted into Teach for America, and placed in a new state. Obviously we need a place to live and we are trying to qualify to buy a home in our new area. Has anybody done this successfully?
We are getting push back because we are trying to close on April 30th, with my husband keeping his job back in VA, and school not starting until the end of August. They are trying to classify our new home as a “Second Home” since none of us have a “job” in the new area when we close. We need it to be classified as our “Primary Residence” to qualify for a 3% down on it instead of the Second Home 10% down requirement.
Any advise would be greatly appreciated!!!
@TJMTech I have a few questions to help me understand your question:
Who is “we” that will be in the new city with you? Are you on the mortgage or deed for the house in VA? Are you planning to sell the VA house?
If you are on the current home, the new house is your second residence. It will be difficult for you to get a loan on you own with no income until August, since banks and mortgage companies look at cash flow to repay the loan. Even if you do the home in the new state as a second home, at this point, the mortgage company would be looking at your husband’s income to cover both properties.
I would ask to see if people typically do a short term rental to get started or if there is a special set up for new teachers coming to the city. For example, a family friend sets up housing for visiting mission workers under prearranged umbrella agreements. The mission workers don’t have paying jobs and are dependent on family/outside support.
If you don’t plan to stay in the city permanently, it might make more sense to rent a home.