Financing options for unemployed/self-employed in Atlanta

[Nick Brubaker]

Dear BP members,

My wife and I are getting serious about buying our first investment property(s) (one being a personal residence) here in the Atlanta/Decatur area.  We are looking for either one distressed multifamily property or two single family properties.  

I am wondering though what financing options we can expect as we both recently moved back to the us, are between employment, and will likely be self-employed once we do find employment.  I have strong credit (760) though my wife has a limited credit history as she is now immigrating to the country.  We have a substantial amount of savings which would allow us to pay cash if need be.  However I would prefer to utilize some leverage.  

How difficult will it be for us to find financing?  I am trying to make an appointment with the loan officer at my credit union, but I'm wondering if there are other tips or suggestions any of the more experienced/informed members might be able to send my way.  

Thanks!

[Ethan Atkinson]

@Nick Brubaker - What price point are you trying to purchase a home?  First thing you should be looking for is a private lender!!  It will be tough, or maybe really easy to find out, but that's where to start. Banks don't like a bunch of money in the bank unless you also have a job.  

I am surprised none of the investors haven't chimed in about going after deals with the mindset of an investor.  Look for opportunities that you can purchase subject to the existing mortgage with a small downpayment.  It is pretty rare these days to find a deal in the Decatur, actual city of Decatur area, that is under water, so likely anything you purchase sub-to the existing mortgage could possible have some equity.  This method is not regular financing, and you wont be speaking with any loan officers, but you could still purchase the home, get the title in your name, and have a real closing. And yes, like all changes in title this could force the due-on-sale clause for the current lender.  And no, it is not illegal.  After some time you could refinance, with the future higher rates, into your and wife's names. 

With your current situation, regular financing, like FHA is going to be out of the question. Self-employment needs to be for 2 years with tax returns. The gap in employement might be tough for most big lenders, so my advice is speak with the small banks first anyways. They might loan out of their own money instead of Fannie/Freddie guidelines.

The other option is calling all the properties listed for rent on craigslist and Zillow and asking if they will give you a lease with an option to buy, once you get your financing in order.  Then you also have a test drive on the home and neighborhood anyways.  Let me know if you need some local lenders to speak with.