All Forum Posts by: Derek Brickley

Hi Faiz!  So then are you possibly looking to buy a primary residence or an investment property?  Correct me if I'm wrong, but it sounds like the deposits are from your flipping business?  Whether this income would qualify you or not would largely depend on how much you claim on your taxes and for how many years.  A safe, generic guideline is to average your taxable income for the past 2 years.  Bank statement loans of course would look at the total deposits into your account and use a percentage of that as income.  Hope that helps, but definitely depends on your situation and what exactly you might be looking for!

 Got it, happy to see if we might be able to help!  Rates/terms are not the most favorable, but if it gets you into a deal might make sense!

Hey Brian!  Looking for a debt-service equity line or something specific?  There might be a few options either way, but might make sense to learn more about what you're looking for and your goals to see if we might be able to help.

Hey Ryan!  It's awesome you're thinking about this now.  There are a few steps you can take (I did these steps before graduating and buying my first househack):

- If someone you know has an excellent credit history, you can ask them to add you as an authorized user to their account.  This will help you "inherit" their good credit and age of account.  Note that if they have poor history or if a payment is missed, it would reflect on you as well.

- If you don't think you would be buying in the next few months, opening another line of credit may be a good option.  Typically the hard inquiry from those will only last a few months, and entirely drop off your credit after 2 years.  

- You could also look into sites like Experian Boost that would report things you may currently pay (phone bill, utilities, streaming services) and that could also help there.

With your situation, even though you may have perfect payment history it is difficult to start because you don't have a large mix of accounts (credit cards, auto loans, mortgages, etc.) and the average length of accounts is small.  An important note with your current card (or any others you may get) the magic number for utilization rate seems to float around 9%.  So for example, if you have a credit line of $1,000, research would suggest that the optimal balance on that account for improving credit would be $90 or less.  Make sure that there is a balance on the account every month though, as having $0 does not help you improve your payment history or utilization.  Keep the balances low, and then pay the previous month's statement balance in full to prevent paying extremely high interest rates.

No affiliation or anything, but as a student I started with the Discover IT Cashback card.  This was a great first card and was not difficult to qualify for.  My next card I got while a student was the Chase Freedom Unlimited and gives 1.5% cashback with no annual fee, and getting Chase cards early on helps you avoid their 5/24 rule.

This is a lot but if you have any questions, feel free to reach out!

Hey Doug!  I think there is more behind this.  Totally agree with Chris that getting a loan estimate is a great step to compare.  Rates/fees are almost always a trade-off, so seeing a side-by-side comparison may be beneficial.

Hey Chris!  

Huge benefits to househackers and would be happy to see if we might be able to help.  Do you have a property in mind?  Feel free to reach out if you have any questions or to explore some possible options

Hi Shane! When buying a new rental with a conventional loan, in most cases you can use 75% of the rental income to help qualify. However, it would never negate DTI requirements. If you are looking for options without employment verification or DTI requirements, a DSCR loan might be helpful. Depreciation can be added back from tax returns again in most cases.

Perfect! Can definitely be a great strategy and down the line there are some creative ways to finance rent-by-the room opportunities, generally Debt-Service loans.

Hey Tomasz!  Different lenders might have their discretion on acreage, but generally speaking Nick is correct as long as it appraises there should be no problem.  Is this a buy and hold, or some other strategy?

Hey Josh!  Not sure what would make most sense, but would be happy to see if we could help.  Weighing the options, it would depend how much equity you would be looking to pull out and your current debt-service.  Definitely are circumstances where one makes more sense over the other, but hard to say from the post.