Real Estate Investing Forums

Real Estate Investing => Financing, Hard Money Lenders, Private Money => Topic started by: zildjin5 on September 16, 2006, 01:59:14 am

Title: Minimum Qualifications/Loan types
Post by: zildjin5 on September 16, 2006, 01:59:14 am
2 Questions...
Is there a type of loan for purchasing income properties where the qualifications for the loan would be solely based on the property's rent? What i'd like to do is take a loan to buy a property but not have my "personal income"  factored into the loan. I've heard of "no income verification loans" but my understanding is those require large amounts of money down btwn 10-50k. Is there a way?

Other question is...If I must take a loan that's attached to my credit score how am i standing with 725 score...but only 2 years history. (I'm only 20) I keep seeing these loan ads with (Only 660 credit score required), to qualify but does that assume you're like 30 years old with 10 years of verifiable income or something outrageous like that.
Title: Re:Minimum Qualifications/Loan types
Post by: Investment Loans on September 16, 2006, 01:10:26 pm
You have a great credit score that would normally allow you to get a high ltv loan.  Most of these loans will require that you have a solid 2 year work history and enough liquid assests to cover the down payment, closing costs, and 6 months of whatever the expected mortgage payment on the property will be.  Those funds need to have been in the account for at least 2 months.  A no ratio could be done under this circumstance.

If you didn't have the 2 yr history of employment or enough assests then a no doc would be needed.

What concerns me though is the amount of tradelines opened on your credit report.  On these programs, not only do lenders require specific scores they also need 3 or 4 active accounts that have been opened 2 years.  If you don't have them, there are a couple lenders that allow utility bills to be used.

One more thing,  most lenders require you to show a verifiabe 12 month mortgage or rental history.