(No money mo’ problems) Purchasing a rental with low income

[Rodney V Hill]

Hey I’m a restaurant cook planning to become an EMT soon in Greenville NC and I’m trying to find a way to secure funds for a rental property before I find one. Is it possible to obtain a conventional or unconventional loan when I make less than 10k a year?

Also does anyone in NC know of any banks that tend to offer decent ‘Cash’ lines for a rental purchase?

[Stephan L Schnaiter]

I'm a mortgage broker in Greenville, SC, so this popped up on my "Greenville" keyword alerts.  I don't have any vested interest in this, as I am not licensed to lend in NC.  However, I wanted to offer a few thoughts.

1. Continuity of income.  If your job has an expiration date on it (i.e.--you've given your employer notice that you are leaving a month or two down the road), it will be difficult, maybe impossible, to use your current income.  However, your income stability should improve once you are a W2 employee of an EMT company.

2. FHA doesn't finance investment properties straight out. You would need to buy a 1-4 unit property to live in at least one unit of it to be eligible for FHA financing.

3. A non-occupant co-borrower (parent, grandparent, great-aunt Ima Jean) might be an option to bring added income stability to a loan application.  The NOC must be credit worthy and have enough income to cover his/her own liabilities with enough leftover to help supplement your debt to income ratio.

4. Go to your local CREIA and talk to hard money lenders and other investors about non-conforming loan opportunities.