Hello Everyone, I’m trying to get started in this business and have been reading this board for months and just when I thought I was ready to jump in, I get hit with a lay-off. My question is I don’t want to go through this again, is it possible to purchase properties without a steady income that you are looking to rent or flip, would the lender look at the rental income to approve the mortgage. If you can point me on the right track I would greatly appreciate it, thanks in advance.
Sorry to hear about your layoff. There are programs available which allow you to state your income and in some cases assets. However, the availability of these programs is contingent upon your credit score.
If you have a lower score( <680) you may want to see if you can get some seller financing. It will not help your credit, but, it would not require the in depth review of your qualifying factors.
If you are not working, you are probably looking at a No Doc or NINA loan (No income, no assets). This is basically a blank loan application and it takes a good credit score to qualify. You can probably get approved down to a 620 credit score on this kind of program, but it would mean a pretty high rate and larger down payment.
Thank you everyone for the quick replies, I’m think the most effective way for me to start out is to look for income producing properties like duplexes, small apartment units, etc. I have a very good credit score of 780 and so does my wife and she is still working so hopefully the credit won’t be an issue. As far as down payments I would like to keep them at a minimum out of pocket. Now I just have to find the properties that has been the hardest getting them before other people do. Thanks again for your help.
Good Luck!