How to get a loan if I don't earn much

Question

We are currently looking at a $100k condominium unit as a first rental property. We, meaning, my mom and I.

Everything else aside, the agent told us that banks usually loan the amount if the monthly payments are at least 1/3 of my salary (my mom is no longer allowed to loan due to her age).

What we're planning to do is to have a lower equity (say, about 15%) and loan the bigger amount (85%). We'll let the tenant shoulder the balance. However, since the loan is bigger, my salary is not enough to justify the amount we are loaning.

What are the other ways we can convince the bank to give us a loan? Or other ways to finance it?

(As a side note, we are not investing in the US and the market is a bit different so we are considering condos as rental property even if, in general, many do not recommend it.)

Zoran M. · Answer

Local banks may look more at the property than you.  That's not to say, however, that your DTI or ability to come up with the down payment isn't important.  Visit a few lenders, have a pitch package, and try to show them that they need you ... and not the otherway around.

Andy Collins · Answer

If the property is in another country, you need to find out what the banks do in that country.  An idea that might help in the US  might be a bad move in another country.

Eddie Werner · Answer

Why condos?  What is the monthly fee?  That normally kills cash flow.  Just talk to all the banks/credit unions you know of.  Some have looser lending practices then others.