Advice for Best Route to take to Qualify for Rental Property Loan

[Phyllis Luu]

Hi BP Community,

I need some advice on which steps to take to give myself a better shot at qualifying for a higher bank loan at a better rate. I've listened to podcasts and read some materials, however, I'm not 100% sure which steps I should take.


As I understand you need 2+ years of Income to qualify for a loan,

the Questions i have are,

1-Does the income have to come from 1 employer or source?

2-I work as a contract employee and sometimes other companies pay more for my services. Is it better to stick with 1 employer of record to show to banks, or is it better to accumulate and save the most income possible? This income would range from an extra $100-200 a week, so this isn't groundbreaking. I'm in the early steps of my career so my taxable income last year was around $30k, however, I have saved up a lot to for close to 30% down on a rental property.

3-Is it advisable to open a Roth IRA or HSA to use as potential income to get a better loan offer?

4-As I understand credit scores help. Mine is hovering at 800. I was denied my initial loan offer because of income initially and counteroffered. Should I apply for another credit card to improve my credit limit and also raise my credit score? this would lead to me having 2 hard checks on my credit score since the last for the counter offer loan, or should I stay put for credit?


As a complete newbie, Besides these questions above, should my main focus be increasing my income? if I want to qualify and be competitive for larger size properties?