Buying multifamily home with Poot credit and no proof of income?

[Hector Salas]

Me and my wife are looking to buy our first investment property, before our lease is due in four months where we currently rent. We have a down payment ready to go. However our credit is poor, and I have been working under the table for quite some time, therefore have no proof of income. We’ve spoken to a few real-estate agents and lenders, and all say it won’t be possible. Is there anyway it can be done?

[Rene Owczarski]

@Hector Salas Credit, it can be pretty low, and still get bank financing. But having no proof of income, is a deal killer with banks/credit unions. Maybe a good bet, would be to look for a seller finance type of deal. Since most of the time they are only looking to see how big a down payment you can make, and in this case a bank statement to show that you have money (i.e your income) coming into your account. So it'll probably be an off-market deal, or a stale listing that might have just dropped off the MLS.

[Steve K.]

@Hector Salas Rene had good advice to find a seller-financed property. Another option would be to find a partner/ partners that can qualify for financing, or work on your credit and adjust your taxable income by starting a business and paying yourself from it rather than working under the table/ tax free.

[Lynnette E.]

I won't help for this year, but will in the future.  

Don't be paid under the table.  

Claim all your salary, pay taxes, pay social security, Medicare tax, disability, unemployment.  Your taxes are proof of your income.  Before you file for 2020, claim all your income and pay up!

Not only is it the right thing to do, it will help you get loans and someday will increase your social security, and will help if you do need disability or unemployment.

[Hector Salas]

Rene and Steve thank you guys so much for your great advice. I will definitely look into it. Lynnette thank you for your honesty, I agree 110% and intend on doing so.