Denied From Bank, Seeking Funding

[Anthony Zotto]

Hello BP!

I graduated college in May and currently hold a sales position. I have held this job for 5 months, and make $650 per week before taxes as a base pay. The bank I applied to said that they cannot count my commissions as income due to my short work history. My loan application was denied due to lack of work history/income. I have a 750 Credit score and was looking to purchase a single family rental for $130,000, which I have 25% down for. I was wondering if anyone could point me in the right direction as far as where I would go to seek funding ? Thanks for reading!  

[Patricia Steiner]

First, congratulations on your graduation and on getting a job - especially this year!  Both are major accomplishments.  What I would like for you to consider is not what you want to hear - you may not be ready to start your investment career quite yet.  The down payment doesn't come near meeting the financial obligation of buying the property.  Closing costs will run 3 to 5% and you'll have to come out of pocket for the first year insurance policy, appraisal, inspection, and more.  And, then, there's always those unforeseen repairs...

My recommendation would be to find a lender who will tell you when to come back with the required earning history and who will be ready to make it happen when you do.  Also, don't fall in love with dirt...what you like today might be dull in comparison to what's coming on market in the coming year - with foreclosures and more on the horizon.  

Stay smart.  Keep learning. Keep looking. Wait until you can enter the game with the best rate and terms.  It's not that far away...