Getting a mortgage loan while unemployed

[Kevin L.]

I recently purchased a house with cash and it gives me a rental income of about $2500/month. I want to purchase more properties but I'm afraid I won't be able to get a loan because I'm in school (Phd program). Would my current rental income qualify me to get a mortgage, or do I need a w2? And what if I were to place this property into an LLC and pay myself...does that make any difference?

Is there a certain minimum amount of rental income needed in order to qualify for a mortgage? If I can’t get a mortgage, are there alternative loans that would better suit my situation?

I've also been thinking to move into my rental property (duplex) so I can get a HELOC...but also not sure if I'd qualify with my only income being from one half of the duplex.

[Silviano Vasquez]

Kevin,

What Stephen is referring to is a lender who offers a no ratio loan.  A no ratio loan does not verify employment and does not verify income.  It only needs to have the subject property you are buying to be cash flow positive.  As long as the rental income is at least $1 more than the mortgage payment, taxes and insurance you would qualify for the loan.