loan options for someone without 2 years of job experience

[Joe Coe]

Hey everyone thanks in advance for any advice. I'm a young guy trying to get into my first house hack. I opened a pool business little under a year ago. I have enough income, good credit score, and enough for a 5% down payment but not 2 year job experience. I've been talking to lenders and have not found any good possible options besides someone co-signing or seller financing which seems to be really hard to find. Does anyone know a way around the 2 years? 

Thank you,

Joe Coe

[Jon Puente]

Hey Joe, 

Unfortunately, most lenders are going to want 2 years of business ownership because they are looking for the income on your tax returns to qualify for a mortgage.   It is very difficult to qualify for a mortgage with less than a year in business and no provable income on paper.  Your best bet is to wait it out and continue to grow your business for 2 years and try at that point.  

The only other options that may work (but most likely will not) is to do a NonQM loan, such as a business bank statement loan where you show cashflow deposits into your bank account.  However, you will need 15% to 20% down on those at minimum.

[Brennen Thompson]

Hey dude! 

You might be able to get a DSCR loan... Down payment is going to be higher, but the lender will look at the income the property produces rather than your income. You also might need to have some cash stored up (or find a partner that does) to show adequate reserves. Just spit-balling here!

[Kenny Simpson]

Hi Joe I am local in SD and been in the mortgage biz for 19 years.  If you want to hit me up and chat about your scenario and see what we can do.  There is options but to much to type here LOL :)

[Eliott Elias]

DSCR lending.

[Nathan Gesner]

Quote from @Joe Coe:

Welcome to the BiggerPockets forums!

You can educate yourself on owner financing and the benefits for a buyer or seller, then look for deals that will allow this option. I've purchased several properties with owner financing. This kid got started bought his first couple of properties with zero down and favorable terms that allowed him to skyrocket to where most investors never get!

[Nicholas Coulter]

@Joe Coe you could consider a DSCR loan. youll need a higher down but they will look at the generation of income not yours. Might mess with your numbers. Any way you could look into getting a co signer?

[Lyndsay Zwirlein]

For a house hack (meaning it's owner occupied), you'll need to wait until you have 2 years history for conventional, bank statement loans, etc. DSCR could work but cannot be owner occupied. What about seller financing? Or subject to?