Can I get a loan with no income?

Question

Hello all,

I've been retired for a couple years with no income coming in. I'm interested in purchasing a small multifamily - anywhere from 2-6 units.

Is it possible of obtaining a loan with no income? My credit's been good - never missed a payment on anything before.

Thanks in advance

Tarik Turner · Answer

As long as you have the down payment for the property the answer is YES

you would need about 20% to 25% of the purchase plus enough cash to cover the closing costs

Michael Corso · Answer

Yes you can get a loan with ZERO income. Usually a good idea to have either credit 680 Plus or a down payment.

Jared Rine · Answer

@Carl Gerhara...4 units or under, you can get a complete stated income loan, based on the property income, rather than anything personal.  These products do exist.  Fico is usually run though to determine pricing.  Easy answer is yes, but it will depend on particulars.  Getting above 4 units, into very small commercial loans, it gets more difficult, even though they exist in that arena too.

Debra A. · Answer

Asset Depletion? You could do asset depletion with qualified assets. Just depends on where your assets are "tied up".

Stephanie P. · Answer

Hey Carl

Welcome to Bigger Pockets!

No income verification loans get closed every day.  The rates and terms are a bit higher than Fannie Mae or Freddie Mac (1-4 units) and bank financing (5+ units), but they close and cash flow nicely if you have enough cash for the down payment and closing costs, decent credit and the properties are leased at least 80%.

Stephanie

Mark Safrin · Answer

Any Hard Money Loan does not have income verification requirements. For a long term HML 30 year fixed, fully amortized for instance, (available on SFRs 1-4 units) there is DTI consideration on the property itself but no personal income is needed.

Of course the loans still need to be paid off and HMLs are more expensive than conventional loans but if the maths works then it's an option.

Best wishes.

Mark Safrin · Answer

Any Hard Money Loan does not have income verification requirements. For a long term HML 30 year fixed, fully amortized for instance, (available on SFRs 1-4 units) there is DTI consideration on the property itself but no personal income is needed.

Of course the loans still need to be paid off and HMLs are more expensive than conventional loans but if the maths works then it's an option.

Best wishes.

Carl Gerhara · Answer

Thank you for the response. I'm afraid none of those apply to me. The money I do have invested don't generate any income.

I believe I read when you start getting into the 5+ multifamily deals lenders start basing their decision more on the property itself and less on the individual. Is this true? Can you get a commercial loan on a 2-4 unit property?

Tchaka Owen · Answer

Short answer: yes.

As you'll see from reading BP, there are ways to buy property without any money. These include seller financing, partnerships, etc.

First step is to do a true assessment of your situation. For example, most retirees have social security income (ie, income), pensions (ie, income), some have disability income (ie, income), interest/dividends from investments (ie, income). Do any of those apply to you? Most retirees also have sums of money in savings, 401ks, mutual funds, etc. Once you put all that together, your question(s) will be more pointed.

Good luck!

Can I get a loan with no income?

Most Popular Reply