How do I get a Loan?

[Franklin De leon]

Hi BP friends, my nane is Franklin and i live in the New Orleans area, I have been a BP follower for a couple years now. I am trying to start investing in Real Estate for the past year, I even got my Realtor License. But it has been a little tought to get a loan. I have increased my credit score over 100 points (660), but in my taxes report as a self employee I only end up with about $20,000 after my expenses. I am looking for a residential house in my market up to $160,000 (I Know my criteria) and I can affort between 13% and 15% down payment, with let me with a loan of about $140,000. Any suggestion what I should do???

Thank you!!

P.D. Excuse my grammar I'm not from here :)

[Moises R Cosme]

Franklin, based on what you wrote here you are pretty close.  You need two consecutive years of income from one profession, once you have two years that can be verified through your tax returns you will want an average income of about $45,000 per year (which probably means you'll need to wait for a third year).  

If you purchase a property for rental purposes, you can look into a collateral based loan from a lender like LendingHome; they lend money on properties based on what they are worth, not your specific financial situation.  These loans are more expensive and have strict terms but it may be an avenue for you to get started.  

If you want to own something around $160k, you will need to make a minimum of $36,400/year.  Look up the following terms as well:  (1) housing ratio, and (2) back end ratio.