Didn't qualify for a loan, how can I still buy my first duplex??

[Hunter Wolfe]

Hey BP!

I could use some guidance right now.

I've been working two jobs for the past year; a restaurant job for three years and a commission-based job with a real estate investment team for the past year.

I'm renting right now, but for the past year, I've saved about $25,000 to put me in a strong position to buy my first personal investment property.

Last week, I applied for a mortgage through US Bank, and I just found out I was denied because of my income. While I make apx $32-34k per year from my restaurant job, two-thirds of that come from tips. One third is my base pay. My credit score is 743, and my savings looked good according to the lender, but because of being furloughed for three months (due to Corona), they're not counting any of the tip money I've made over the past two years. (Which I think is dumb, because my unemployment covered base pay and tips completely for three months... But that's besides the point.)

TL;DR: I didn't qualify for a mortgage from US Bank, but I'm determined to still buy a duplex before my current lease expires in April. What are my options? Contract for deed? Getting a co-signer? I'm just not sure what other paths I can take, because all of my research prepared me to buy my first property myself through a lender.

Any suggestions are appreciated!

[Ben Zimmerman]

Keep calling around to different lending institutions.  Just because one bank shot you down doesn't mean another bank won't accept your loan package.  Smaller banks and credit unions tend to be much more flexible with underwriting than the big box banks are.  

Never, ever give up after the first rejection.  Otherwise all of us would still be broke and single.