Advice for 21 Year Old Seeking First Loan

[Jarett Tigges]

Hey BP community,

I'm gonna need some pretty specific advice on this one cause there are a lot of moving pieces. Let me give you my situation detail for detail. A partner and I are looking to buy our first property this year. We figure it is smart to go out and see if we can actually get a conventional 20% down loan on a property in the $150-$250k range. I'm 21 years old, I have decent income for being in school and I have no debit (besides credit cards that I pay in full every month). My partner is 22 years old, has substantial income for his age, has a relationship with a bank, but has several loans for his business. We both have great credit, but have several concerns about being able to get pre-approved for a conventional loan. 

1. My debt to income ratio is solid, but my job is "hourly pay" so it would be considered "part time" by the bank. I have been working there for 2.5 years, but once I graduate college, that could change. 

2. My partner has very high income from his job, but his debt to income ratio is pretty high because he has loans for his business. He has an established relationship with a bank, but they might be wary in lending him additional money. 

3. We don't know how banks feel about lending to entities. We will be setting up an LLC and I read that some banks won't even consider lending unless it's in your personal name.

Our game-plan right now is to start reaching out to banks to see if getting pre-approved would be possible. Our back-up plan, if no banks want to lend us money, is to find a private lender willing to take a chance on two young bucks;) 

Hopefully there are some people on BP who have gone through a similar situation and have some good advice for me. Always eager to learn.