Due to a bad relationship and being ignorant about credit scores, I was never in a position to purchase a home in my 20’s or 30’s. I have been trying to change career fields and I was able to find a job about a year ago. The job I currently have is contract work and it pays very well, but it only usually lasts between 1 to 3 months, then off for 2 months, then on for 2 to 3 months, etc. At this point, I am probably about 6 or 8 months away from paying enough dues (with the new job) to be able to count steadily on my job and know how many months out of the year that I’ll be working. For a calendar year, I should make between $ 40 to $ 70K and I do get regular W-2’s.
I recently spoke with a mortgage specialist and they said they could approve me for $ 200K on a home purchase. They said that they will have to do some wrangling because I haven’t been at the new job 2 years, but with me being a veteran and using the no money down clause, they believed they could get it approved. My score that they pulled is 690. I don’t think it was a mortgage score, maybe they were estimating? They did this while we were talking on the phone.
Anyways, to get to the point, I’m looking at this as my first and last home purchase. I know that I don’t know what the future holds, but I’m in the Charlotte area and I like it here and this is where my friends and family are. However, I would actually prefer to buy rural property and either build my own home or find a large plot of land with a house already on it. I’m looking at getting between 20 to 40 acres minimum. In South Carolina, there are areas where land can be purchased between $ 75,00 to $ 140,000 for the amount of land that I want. I want to put in a swimming pool and eventually a pond/lake, as well as a small hobby farm. It’s my hope that in a few years I’ll be able to make money off the farm (honey, chickens, eggs, etc.)
My questions are: Should I buy a small starter home and build a good mortgage history? Then, in a few years, purchase land as a secondary thing so I can build my dream home, while still keeping home #1?
Or, should I just wait, save up as much as I can and then purchase the land and/or land with home? VA has told me that they will finance land with a home already on it, but not vacant land.
My gut feeling is that I should buy a nice starter home and at least have something to show, in case the land/home project doesn’t pan out. I’m pushing 50 years of age and I don’t know how much longer I can or should wait. Also, I currently only have a few thousand saved and to purchase land, they are requiring 20 to 40% down payment. So, that is potentially 20 to 40K just for the land and I still won’t have a home to live in.
Sorry for the rambling, long winded post…………