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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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2000 Goose Ridge, Bozeman, Montana 59715

2000 Goose Ridge, Bozeman, Montana 59715

2Bedroom(s)
2Bathroom(s)
20.94Acre
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Amongst the trees atop Goose Ridge you’ll find this beautiful mountain property. Built in 2001 on over 20 acres this 1,971 sq ft 2 bedroom, 2 bath log home is both comfortable and spacious. A partially covered wraparound deck steps down to an outdoor fire pit. The great room offers a lovely venue to take in expansive Absaroka views.
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27 Noble Peak Drive, Bozeman, Montana 59718

27 Noble Peak Drive, Bozeman, Montana 59718

4Bedroom(s)
2Bathroom(s)
0.26Acre
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Beautiful 2020 built farmhouse in a quiet location in sought-after Woodland Park. Enjoy the rural and mountain views from the 11,000+ sqft lot that is fully fenced, sprinklered, and landscaped. The home is light, bright, and elegantly appointed in every detail. The open concept floor plan allows a nice flow between living spaces and access to several outdoor areas.
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2440 Tschache Lane 302, Bozeman, Montana 59715

2440 Tschache Lane 302, Bozeman, Montana 59715

2Bedroom(s)
1Bathroom(s)
1,063Sqft
These homes have modern finishes and open floor plans. The site is surrounded on 3 sides by a city park and open space, allowing for awe-inspiring views in nearly every direction. All of this from a central location within walking distance from shopping, restaurants, and retail. Start your day with Starbucks coffee (only a block or so away).
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333 New Ventures Drive, Bozeman, Montana 59718

333 New Ventures Drive, Bozeman, Montana 59718

2Bedroom(s)
1Bathroom(s)
0.81Acre
1,088Sqft
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3401 Fallon 1B, Bozeman, Montana 59718

3401 Fallon 1B, Bozeman, Montana 59718

2Bedroom(s)
1Bathroom(s)
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Awesome opportunity to own in Bozeman! This single story main floor 2 bed, 1.5 bath condo has an easy floor plan. Brand new carpet just installed and washer & dryer are included. 1 car detached garage plus parking on street. Fireplace will keep you warm and cozy this fall! Conveniently located close to MSU, mall/shops, grocery and restaurants with Ferguson Farms/The Market just down the road.
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404 Fieldstone Drive, Bozeman, Montana 59715

404 Fieldstone Drive, Bozeman, Montana 59715

4Bedroom(s)
2Bathroom(s)
0.24Acre
2,134Sqft
Are you looking for more than just a tract home? Do you recall as a child riding your bike down tree-lined streets in a quiet, safe neighborhood? How about the Ice Cream truck driving down the street bringing all your friends outside for a frozen treat? Well, we can't turn back the hands of time, but we have the next best thing.
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5443 Vahl Way, Bozeman, Montana 59718

5443 Vahl Way, Bozeman, Montana 59718

4Bedroom(s)
1Bathroom(s)
0.12Acre
2,924Sqft
Spectacular setting, home, and neighborhood. This 2019 Parade of Home's entry allowed no detail to be overlooked. Custom additions on this home will provide so much enjoyment and value to the lucky new owner. From the office at the front entry of the home, which showcases one of the lakes, to the spacious great room, kitchen and dining combination; the views abound.
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3024 S 31st Avenue, Bozeman, Montana 59718

3024 S 31st Avenue, Bozeman, Montana 59718

3Bedroom(s)
2Bathroom(s)
0.10Acre
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Encounter Gran Cielo, Bozeman’s newest neighborhood. Where contemporary design meets classic community. Located in the heart of all that Bozeman offers, with easy access to everything. The Lagom N1 is 2,128 sq ft, offering 2 living areas, 3 bedrooms, 2.5 bathrooms with office space.
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1802 W Lincoln Street 13, Bozeman, Montana 59715

1802 W Lincoln Street 13, Bozeman, Montana 59715

3Bedroom(s)
1Bathroom(s)
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Beautifully remodeled 3 BR, 1.5 BA townhouse-style condo adjacent to Montana State University. Stunning kitchen renovation with all new black stainless appliances, new counters, new soft-close cabinets, new tile flooring, new canned LED lighting and a massive pantry with a custom alder sliding barn door.
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Windermere Downtown Bozeman

135 E Main St.

Bozeman, MT 59715

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