Mortgage pre - approval

[Gordie Ballhorn]

Just talked to the bank and they said I’ll need a co-sign for my mortgage as I’m a student and don’t have a steady income. Have the money for a down payment and 3 renters lined up already for the place. First time buyer, what should I do? Ask my parents? Or is there an alternative? Thanks in advance!

[Kevin Romines]

Are you talking about a single family residence or a 2-4 unit property? When you say you have tenants lined up, will they be in the same unit as you (known as boarder income) or will they be occupying their own units? With boarder income, there are fewer loan programs that will count that income. 

Its much easier for you to qualify to buy a 2-4 unit property because you get to count the income from the other units immediately. Typically the rents coming from the other units is enough or more than enough to offset the PITI payment. At that point, so long as your personal existing debt ratio is within guidelines, you should be just fine from there.

If you are not getting advised in that way from the lender that you went to, walk away, go to a Banker or Broker that can show you the differences and show you what you can qualify for based on the scenario's that you might lay out for them. 

I hope this helps?