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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4633 Shadowglen, Bozeman, Montana 59718

4633 Shadowglen, Bozeman, Montana 59718

4Bedroom(s)
3Bathroom(s)
0.17Acre
2,617Sqft
Four bedroom single family home on Bozeman's growing west side. Two stories with a main floor master bedroom. Generous amount of counterspace and storage in the kitchen, gas fireplace in the living room and formal dining room. Upstairs features two bedrooms, bathroom and loft/flex space currently used as an office.
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203 Wickwire Way, Bozeman, Montana 59718

203 Wickwire Way, Bozeman, Montana 59718

3Bedroom(s)
2Bathroom(s)
0.20Acre
2,067Sqft
Beautiful new construction available for immediate occupancy in Black Bull, just in time for golf season. Located steps from the club's amenities, 203 Wickwire Way provides easy single level living in one of Bozeman's most sought after communities. With 3 bedrooms, 2.
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2489 Andalusian Avenue, Bozeman, Montana 59718

2489 Andalusian Avenue, Bozeman, Montana 59718

4Bedroom(s)
2Bathroom(s)
0.28Acre
2,770Sqft
Welcome to 2489 Andalusian Ave in the highly sought after Baxter Meadows West Subdivision! This custom home is one of last crafted by renown Bozeman Developer Ed Adamson & Bozeman Building Traditions. This unique green and energy efficient home features two types of solar panels, complete with high efficiency Smart Triangle Tube Boiler System and radiant floor heating.
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29 Hoffman Drive, Bozeman, Montana 59715

29 Hoffman Drive, Bozeman, Montana 59715

4Bedroom(s)
3Bathroom(s)
0.07Acre
2,568Sqft
Spacious 4 bedroom, 3 bathroom Woodbrook townhome by renowned builder Ken Leclair in an unbeatable location near MSU, Downtown, and Bozeman Health. Enjoy the park-like setting backing to beautiful mature trees and babbling brook from the expansive newly built Trex deck. Main floor open living with vaulted ceilings and massive windows providing tons of natural light.
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340 Stonegate Drive, Bozeman, Montana 59715

340 Stonegate Drive, Bozeman, Montana 59715

4Bedroom(s)
3Bathroom(s)
0.96Acre
3,093Sqft
Brand new to market! Welcome to serene Stonegate subdivision tucked into Bozeman's Riverside Golf Course with spacious 1+/- acre lots & stunning mountain views. Abundant windows & natural light envelop elegant 3093 sq ft home with 4 beds & 3 1/2 baths. Main level master en suite boasts a ginormous walk-in closet/dressing room.
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3109 Augusta Drive, Bozeman, Montana 59715

3109 Augusta Drive, Bozeman, Montana 59715

4Bedroom(s)
3Bathroom(s)
0.29Acre
3,005Sqft
Beautiful home on the 14th fairway of the Bridger Creek Golf Course. "Big" unobstructed views of the Bridger Mountain Range. This home features 2 master suites, one with a walk-in closet big enough to make into another bedroom! Great room concept with corner river rock gas fireplace, large kitchen featuring cherry cabinetry, granite counters, butcher block island and a nice gas range.
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1418 Cherry Drive, Bozeman, Montana 59715

1418 Cherry Drive, Bozeman, Montana 59715

3Bedroom(s)
2Bathroom(s)
0.21Acre
2,523Sqft
This well maintained ranch style home backing to the Hyalite View Park is ideally located within close proximity to downtown Bozeman, Bozeman Deaconess Hospital, and Montana State University. The trail system runs right past the back door for hiking and biking opportunities as well. The two levels of this home afford separate bedroom/living areas for guests or roommates .
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280 Eagle Creek, Bozeman, Montana 59718

280 Eagle Creek, Bozeman, Montana 59718

3Bedroom(s)
1Bathroom(s)
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This spacious 2-level Cottonwood Condo is ideally situated in the ever-growing West-End of Bozeman. Within walking distance to restaurants, coffee shops, trails, and workout facilities. Natural light floods the main level with an open concept floorplan with warm, oak flooring throughout the ENTIRE condo (helpful for those with allergies).
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315 N Tracy Avenue 508, Bozeman, Montana 59715

315 N Tracy Avenue 508, Bozeman, Montana 59715

2Bedroom(s)
1,418Sqft
The Henry is a proposed 6-story, luxury residential for sale development in the heart of downtown Bozeman, Montana. Totaling 44 condominiums, the project is 3 blocks from Main Street at the southwest corner of Tracy Avenue and Villard Street. The Henry is positioned to be the most sought-after residential property in Bozeman, given its location, amenities, design and views.
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