Analysis help! What is true and what isn't?

[Josh Kercher]

Hello all! I'm looking for some direction on possible financing options on two properties I'm looking at...

The first is a 2 story 2 unit with 2 bdrm/1bath on each floor listed for $49900 under the homepath Fannie Mae program. Unit is in college area and good rental area. Rents (conservatively) would be $700 - $750 per unit so $1400 - $1500 gross monthly. Annual taxes are $4900 and tenant pays utilities. Using a spreadsheet from 123flip.com the property shows between $380 - $470 mo pre-tax cash-flow after all expenses.

My problem is in getting the loan. I have the standard 25% to put down although homepath allows for 10% however my average credit score right now is around 630. My mortgage broker tells me that I need a 50k loan (minimum) and that for an "investment" property I need scores of 680 or higher. My spouse has 720+ score but insufficient income to approve loan. My broker also tells me that since I have the lower score that I cannot go on the loan even though my income would put us over the top.

I'm frustrated that we can seemingly have EVERYTHING we need on a great cashflowing property and get turned down because of one thing. How can I get around this problem and buy my first property!?!?! I've been dealing with this for about two years and have found many properties that I have just had to hand off to other people. Any advice that will steer me towards getting this damn deal done would be PROFOUNDLY appreciated!

Josh in Ann Arbor