Tipped Employees Can Purchase a Home in Bozeman – Here’s How!!

by Liz Nitz

Tipped Employees Can Purchase a Home in Bozeman – Here’s How!!

Yes, Tipped employees can purchase a home in Bozeman! Do you get a significant amount of your income from tips?  Do you want to own your own home but think you can’t qualify for a mortgage?  I have good news!!  With some planning and careful documentation, you can definitely purchase a home and even qualify for low down payment programs.  Following are the very important steps to get you on your way to home ownership.

 

Steps for Tipped Employees to qualify for a mortgage

  1. Track your income including all of those tips! Get in the habit of logging your tips daily and then depositing them in the bank on a regular basis.  Regular means daily or at the most weekly.  Your lender will want to see these regular deposits to verify your income.  Try and keep a log of your shifts worked and how much you earned in tips and then deposited.
  2. Pay taxes on all of your income including all of those tips! I know that you can probably get away with not paying taxes on everything (cash tips) but the income that you state has to square with the taxes that you pay.  No way around it.
  3. You will need to show a consistent work history. That means that you have earned enough money at your job for 2 years and preferably in the same job for at least six months.  So find a place that you like to work and that you earn enough money, and then stay there.
  4. Because the lender will look at your debt to income ratio, put off any other big purchases until your home is closed. That means no new cars…and while you are at it, pay off the credit cards asap.

 

There are so many low down payment programs out there to help you purchase your first home.  Some are below:

 

Low Downpayment Programs

There are VERY generous programs out there to help with qualifying the first time homebuyer for a purchase with a low downpayment.

  1.  FHA loan program: A loan insured by the Federal Housing Administration. Good for those with low credit scores and little money saved for a down payment.  https://www.hud.gov/buying/loans
  2.  USDA loan program: A loan program 100 percent guaranteed by the U.S. Department of Agriculture for lower-income borrowers in eligible rural areas.  https://www.rd.usda.gov/programs-services/single-family-housing-guaranteed-loan-program
  3.  VA loan program: A loan backed by the U.S. Department of Veteran Affairs that allows no down payment for military personnel, veterans and their families.  https://benefits.va.gov/homeloans/
  4.  Good Neighbor Next Door buyer aid program: A HUD program that provides housing aid for law enforcement officers, firefighters, emergency medical technicians and teachers.  https://www.hud.gov/program_offices/housing/sfh/reo/goodn/particip
  5.  Fannie Mae or Freddie Mac loan program: Conventional loans backed by Fannie Mae or Freddie Mac require 3 percent down. Good for those with strong credit.
  6.  HomePath ReadyBuyer Program: A program that provides 3 percent in closing cost assistance to first-time buyers. Must complete an educational course and buy a foreclosed Fannie Mae property.
  7.  Energy-efficient mortgage program: Backed by FHA or VA loan programs and allows borrowers to combine the cost of energy-efficient upgrades onto a primary loan upfront.
  8.  FHA Section 203(k) loan program: Borrow the funds needed to pay for home improvement projects and roll the costs into one FHA loan with your primary mortgage.

 

For daily information about mortgage rates, check out this site http://www.mortgagenewsdaily.com/

Currently, mortgage rates are super low and prices are still affordable so you can purchase a home in the Bozeman area.  Read more here about how Bozeman fared during and after the Covid closures.  https://movemetomontana.com/2020/06/15/bozeman-real-estate-rebounds-after-covid-closures

Tipped employees, this is your time to purchase a home in Bozeman!  Please reach out and schedule a consultation and start the process today!!

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2238 Baxter Lane 8, Bozeman, Montana 59718

2238 Baxter Lane 8, Bozeman, Montana 59718

2Bedroom(s)
2Bathroom(s)
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This cozy, well-maintained, and bright second level 2 Bed, 2 Bath condo boasts it all from new LVP flooring throughout the kitchen and living room to its convenient proximity to shopping, parks, and schools. Enjoy the mountain view from the covered balcony before heading to the nearby walking trails. Easy access to the detached single car garage and private parking space.
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1755 Windrow Drive, Bozeman, Montana 59718

1755 Windrow Drive, Bozeman, Montana 59718

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2Bathroom(s)
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5408 May Fly Street, Bozeman, Montana 59718

5408 May Fly Street, Bozeman, Montana 59718

3Bedroom(s)
2Bathroom(s)
0.14Acre
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2400 W Durston Road 40, Bozeman, Montana 59715

2400 W Durston Road 40, Bozeman, Montana 59715

3Bedroom(s)
2Bathroom(s)
1,820Sqft
Appealing Willowbrook condo with updated luxury vinyl plank flooring in kitchen, dining area and living room. Full kitchen appliance package plus a washer and dryer. Gas fireplace serves dining and living room areas. Large east facing patio for enjoyment in the summer. First floor master with double closets. The two bedrooms on the second floor share a full bath. Two car garage.
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743 Loxley Drive, Bozeman, Montana 59718

743 Loxley Drive, Bozeman, Montana 59718

5Bedroom(s)
2Bathroom(s)
0.19Acre
2,348Sqft
Location, main level master and a 3 car tandem garage are just a few of the reasons you have to tour this property for yourself! Vaulted ceilings, five bedrooms, two and half bath with over 2,000 sq ft. this floor plan allows for a variety of options to suit your needs. Directly out the backdoor leads you to a patio with a pergola great for entertaining in the backyard.
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2526 Maiden Star Lane, Bozeman, Montana 59715

2526 Maiden Star Lane, Bozeman, Montana 59715

3Bedroom(s)
2Bathroom(s)
0.20Acre
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The Legends home you have been waiting for! 3 bedroom 2 1/2 bath, high end custom built by DK Homes. Fantastic location close to neighborhood trails that link to the M/town trail and Story Mill Park. Minutes to Main Street and Bridger Bowl. This home features an open floor plan showcasing rock fireplace with soaring vaulted ceilings.
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3801 Renova Lane, Bozeman, Montana 59718

3801 Renova Lane, Bozeman, Montana 59718

3Bedroom(s)
2Bathroom(s)
0.14Acre
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114 Michael Grove, Bozeman, Montana 59718

3Bedroom(s)
2Bathroom(s)
0.08Acre
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4616 Danube Lane, Bozeman, Montana 59718

4616 Danube Lane, Bozeman, Montana 59718

4Bedroom(s)
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Highly sought after Baxter Meadows West location! If you're looking to be in the heart of Bozeman's energy, look no farther! Conveniently located just blocks from Bozeman schools, the neighborhood park, Bozeman Sports Park, Gallatin Regional Park, Dog Park, pump track & Dinosaur Park...it's a rare find! Situated on just over 0.
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