What steps do I take to buy a home to start a day care center?

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This topic contains 5 replies, has 5 voices, and was last updated by  pleasexnferuncor 8 years, 5 months ago.

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  • #207731

    Anonymous

    I have everything I need to start my own childcare center…except for where to have the childcare center. I do not want to rent and would like to buy a single family or a two family home. I would run the day care on the first floor and myself along with my 3yr old would live upstairs. I have tons of support for the actual business but when it comes to buying the house I dont know where to begin. I have 2 yr job history and currently making 15 an hr in Bridgewater Ma. I never miss a credit card or car payment and 2yrs ago my credit score was 660 I havent checked since then. The biggest debt I have is my student loan which I also have never missed a payment on. Will I qualify for a loan? What do I have to do to make sure banks do not turn me down? Should I get a higher paying job? How much should I save? I do not pay rent because my apt is owned by my dad. Should I save a certain amount to show I can pay a mortgage or should I start paying him rent? I live in West Bridgewater/Brockton Ma if that helps

    all answers are appreciated
    thx for your replies
    my score was 660 two years ago when i bought my car. I doubt it went down since then Ive never missed a payment on anything and did not make any big purchases. I will send for my credit report.

  • #265247

    Hopefully your credit has improved.

    Your income is low though, you will only qualify to borrow 60-70k, and I doubt you can buy a house or duplex in MA for that.

  • #278349

    Anonymous

    First check with your city to see if they allow single family residences in a residential zoned area to do day care. Also check with the state agency in charge of day-care licensing.

    As far as purchasing a home, check with a local FHA lender and have them pre-qualify you for a loan. They will check your credit score, with a 660 FICO that will work, but they have to check how much you owe vs. what your current income is. Plus you will need 3.5% down payment plus closing costs. They will tell you the price of property that you would qualify for.

  • #278449

    Anonymous

    First check with your city to see if they allow single family residences in a residential zoned area to do day care. Also check with the state agency in charge of day-care licensing.

    As far as purchasing a home, check with a local FHA lender and have them pre-qualify you for a loan. They will check your credit score, with a 660 FICO that will work, but they have to check how much you owe vs. what your current income is. Plus you will need 3.5% down payment plus closing costs. They will tell you the price of property that you would qualify for.

  • #279574

    Anonymous

    I laud your ambition, but even in this down housing market, loans are hard to qualify for. Your score is so low – you’d need at least a 720, and do not mention that you want to go into business. Best to have at least 5% cash for a down payment. You don’t want to get cheap house in a bad neighborhood.

  • #282250

    Get approved by the State and get the place you are using for the child day care approved. First I do not think you can run a day care from a apartment and would have to rent or purchase a home. Don’t even try to get a business loan for the home. 90% of 1 time business fail within 2 years.

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