What are my options on buying this house..

Question

Hi! So I am really interested in this property. It is a  4 bed 2 bath single family home located minutes away from a University in Richardson/Dallas area. I intend to buy the home and then rent it out to students of the University.

My problem is that I do not have enough income proof. I am self-employed, and I have been running my business for only a year. This poses a problem because they want to see at least two years at the business. I also didn't claim much on my taxes since I just started it last year! So the mortgage broker is saying I won't be approved for much if anything at all. I have a possible cosigner, but he has little credit (only two lines, a credit card and a car loan) and his income is only bringing in about $1,800. I have a pretty established credit with a car loan and a couple credit cards.

What I am asking is would I be a good candidate to do lease option? I want to keep a hold of the house, establish my credit and my cosigner's credit a bit more, and then in the future buy it.

I am super new to all of this real estate investing but I am wanting to get started now!

Thank you!

Account Closed · Answer

Come in with a large down payment you might stand a chance.

Joe Gore

Tanya Lam · Answer

@Brian Gibbons thank you! The wraparound sounds vey interesting and I will look into it!

@Mark Bookhagen thanks for the advice, I probably have to wait another year to establish my business to get a traditional loan! ????

Mark Bookhagen · Answer

If you are both applying, the bank will use the LOWEST credit score of you and your partner. So from the sounds of it, your score won't matter much. They will also (as your broker told you) consider ONLY his income. The icing on the cake is that they will include YOUR debts PLUS his debts when calculating the Debt to Equity ratio of the applicants. In essence, your involvement in the application will be hurting the deal a lot (your good credit doesn't help, your debts count against the DTE ratio, and your income doesn't count). I feel for you! I would look into private money until you have established your 2 year requisite income that banks like from SE applicants. Don't give up though!! People have done it with a lot less...

Brian Gibbons · Answer

I would buy it on a wrap for 5 years with a balloon.

See

https://www.linkedin.com/in/mindykhenderson

She is a RMLO.

See lawyer's explination

http://www.lonestarlandlaw.com/Wraparound.html

What are my options on buying this house..

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