Wait! You're broke.

[Trevor Lohman]

Hey Everyone,

I'm starting to talk to conventional lenders a bit about purchasing a SFR in the 25-40k price range. I could potentially pay for roughly half of this in cash, but am trying to finance about 75-80% or more of the deal if possible. I'm just curious what you think my chances are of qualifying for this type of arrangement based on the paperwork they're asking for.

They're looking for 2013 W2's and last pay stub of the year, my two most recent pay stubs, and a couple years of tax returns as well as a couple other things.

Currently I make over 125 thousand dollars a year which will be reflected in the three pay stubs being asked for. However, and I don't have it front of me, but I'm guessing I probably made under 15k in 2013 and roughly squat in 2012 (I was in school until June 2013 and was hired in October) which will be shown on my tax returns.

So, will conventional lenders lend to a first time investor with little work history like me? Oh one more catch, I'll be purchasing the property through an LLC. I told the lender this and it didn't really appear to change the conversation, but again, we're in the very very early stages (1 email).

Thanks for the help guys,

Trevor

[Rick Baggenstoss]

You have a logical history, so I would think you can get a conventional loan. As you noted, your income history is too short.

I'd start with a local bank vs. a national bank. They tend to hold their own loans so they might be able to look at it more logically. You might also look into a different kind of loan based upon other collateral until you have longer history.

Rick