Getting mortgages without income

Getting mortgages without income

Member since 2018 · 3 posts · 1 vote

Hello everyone,

I am a total newbie to RE investing, but I have a quick question. If I have money in my savings I inherited (around 200k USD), 100,000 in student loans, and no income, can I just buy a property (maybe using cash-out refinancing), and keep on getting more mortgages on multiple properties with almost no income? Or will lenders not approve me due to lack of income? I have a long and great credit history, close to 780 across all three bureaus. My goal is to use the money from the property to pay for my student loans if I decide to attend graduate school. 

If income is required, I can start working while in school and have a net income of about $50k after taxes. 

Thanks,

Shivam

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Matthew CrivelliBusiness Member
Lender · MA · Member since 2021 · 1k+ posts · 1k+ votes
4y

You can 100% buy an investment property without income. Hard money, we are looking for cash, decent credit, and a good deal. Fix and flip or long term rental. What you will need is an LLC to hold the property under but this is easy and cheap to obtain.

Freedom Capital Funding, LLC523 Reviews
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  • Banker · New York, NY · Member since 2021 · 91 posts · 19 votes
    4y

    Hi @Shivam Sahdev, income is crucial in qualification. It's part of what tells the lenders that you will be able to afford the mortgage. Have you spoken to a local lender yet?

  • Matthew CrivelliBusiness Member
    Lender · MA · Member since 2021 · 1k+ posts · 1k+ votes
    4y

    You can 100% buy an investment property without income. Hard money, we are looking for cash, decent credit, and a good deal. Fix and flip or long term rental. What you will need is an LLC to hold the property under but this is easy and cheap to obtain.

    Freedom Capital Funding, LLC523 Reviews
  • Member since 2018 · 3 posts · 1 vote
    4y

    Thanks for the replies! I am just trying to get the bigger picture and set expectations for now, since I still have a year and a half left of college. 

  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    4y

    Are you sure about the graduate degree? That's not much income for all the time and money you're spending.....

    Maybe better to bail out now and start your RE career? Just a thought....

  • Member since 2018 · 3 posts · 1 vote
    4y

    @Bruce Woodruff I’m really leaning on not going to graduate school, most likely I will spend the time on furthering my skill set instead so that I can pull at least 6 figures by my late 20s

  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    4y
    Originally posted by @Shivam Sahdev:

    @Bruce Woodruff I’m really leaning on not going to graduate school, most likely I will spend the time on furthering my skill set instead so that I can pull at least 6 figures by my late 20s

     Get as much RE and construction experience  as you can instead of Grad school. It'll pay off much better and probably be more fun......

  • Rental Property Investor · Boston, MA · Member since 2019 · 2k+ posts · 1k+ votes
    4y

    @Shivam Sahdev you need income to qualify. There’s no way around it.

  • Lender · United States · Member since 2020 · 1k+ posts · 499 votes
    4y

    You can buy properties all day long without employment verification and income through non-qm lenders.

  • Phoenix, AZ · Member since 2021 · 504 posts · 282 votes
    4y

    Hard money lenders will take a chance (most likely) with no income, as long as you find a property that pencils out. They will be very focused on the asset - given they are taking on more risk with no income. 

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