Getting Started Financing with No Credit

[Tyler McLeod]

First of all, I'm 21 years old in Birmingham, AL, about to graduate college, and I have no debt. I also don't have any credit built yet. How can I start? I've heard of people "piggy-backing" off their parents' credit to give some credibility to the young person. What are other ways?

Are there ways to be loaned money without credit? (other than putting up everything you have as collateral?)

I still have a lot to learn about financing property. I am mainly interested in multifamily units, which I have read are similar to single-family homes in terms of financing.

I don't know much about FHA loans, but I've heard they only require around a 3.5% down payment to get a loan. Is this true? Would that mean I would just be responsible for a down payment in terms of money required to purchase a multifamily unit?

I need some more information. Any direction would be fantastic.

Also, I don't have any properties in mind just yet. I am not about to just jump in and flounder. I am taking my time trying to learn the steps involved as well as who I need to contact to get things rolling.

Thank you all in advance,

A newbie

[Bill Gulley]

Tyler, will you have a job? Where is the capacity to pay besides from the property, since you don't have mgt. experience?

The exception to the credit rules is a new grad working in a job in his degree field.

I'd suggest, unless you have deep pockets, to start smaller, a 4 plex owner occupied can go to FHA as a first time home buyer, a tri-plex or duplex. Get your own house in order first.

Great you're getting out without debt, that is fantastic! Start smaller, the financing will be easier. Good luck!