I have a property that is available to me that seller financing is not possible on, however, I have the money for a down payment but because of job switching, I am not able to provide verifiable income. The property because of the area is only 70,000. What lenders do you guys recommend me to go to acquire the loan? I've heard of DSCR loans, but those seem to have a minimum requirement for the price of the home which mine does not fall into from what I have seen.
Real Estate Broker · Minneapolis, MN · Member since 2011 · 5k+ posts · 6k+ votes
4y
@Zion Rogers why not skip the whole headache, and use person-leverage? Go get a JV partner into the deal. Preferably someone who would make an ideal equity partner going forward who has the capital, and this makes a super easy entry of presenting the future of it and on this first one, no problems, you'll put up 100% of the capital, 0 $ risk for them.
Look, it's a fact that if you want to scale best, quickly and get too financial freedom before a wheel-chair your all but certainly going to have to figure out how to build in JV's and equity partners at some point, so why not start now, kill 2 birds with 1 purchase.
Lender · Charlotte, NC · Member since 2022 · 739 posts · 410 votes
4y
Hi @Zion Rogers, have you recently changed jobs or are you unemployed? If you just changed jobs but do not yet have a paycheck, you can still get a loan.
There may also be a DSCR lender that has a lower minimum but it would be very hard to come by.
Maybe try getting a cosigner with verifiable income then once you have a stable job, you can refinance to get them off the loan.
Hope this helps! Let me know if I can be of any assistance.
Keep talking to lenders until you get the answer you’re looking for. There is always a lender somewhere who can get the deal done. They don’t all have the same limits or requirements. You need to keep shopping until you find the right one.
@Andrew Garcia thanks for the reply, I did just recently switch jobs. It's been for about 2 months now. Am I still able to get a mortgage? I thought lenders required 2 years of verifiable income.
@Andrew Garcia thanks for the reply, I did just recently switch jobs. It's been for about 2 months now. Am I still able to get a mortgage? I thought lenders required 2 years of verifiable income.
Lenders want two years of employment history. You do not have to be at the same job for 2 years. Since you have been at this job for 2 months, you likely have paystubs already. The lender will use that to calculate your income. The mortgage should be very low so unless you have a high amount of debt, you should be able to qualify even if you do not have a ton of income.
If you would like a referral to a lender that can help you, please let me know.
Real Estate Broker · Minneapolis, MN · Member since 2011 · 5k+ posts · 6k+ votes
4y
@Zion Rogers why not skip the whole headache, and use person-leverage? Go get a JV partner into the deal. Preferably someone who would make an ideal equity partner going forward who has the capital, and this makes a super easy entry of presenting the future of it and on this first one, no problems, you'll put up 100% of the capital, 0 $ risk for them.
Look, it's a fact that if you want to scale best, quickly and get too financial freedom before a wheel-chair your all but certainly going to have to figure out how to build in JV's and equity partners at some point, so why not start now, kill 2 birds with 1 purchase.
Investor · Troy, NY · Member since 2020 · 120 posts · 93 votes
4y
I agree with @James Hamling. Not a bad time to think outside the box and bring on a partner to help get the deal done. Definitely easier to scale as well if this is your first one.