Springfield Mo help financing

2 Replies

Hey guys, so I've been looking out for a good deal for a while now and have finally found one. Now I just need help figuring out how to finance it. I am currently a full time student and work around 19 hours a week at a part time job which I have been at for a little over a year. Anyway, now I need to secure a loan for about $20,000. However I have read that fha loans require 2 years of employment (does this have to be the same job). Does anyone have any knowledge or advice to help me get started on my first deal? Thanks in advance! 

Hi, I believe one can not obtain a loan for  less than $75k but it may depend on the area.  I'd suggest you try creative financing - Owner Carry, ect.

Best Wishes, Mitch Stanley

Realtor

Keller-Williams Biltmore

Glendale,AZ

Hey Gage,

I know I am late to the game in regards to your post date, but since I found it, I thought I might chime in for future reference. I'm relatively new to investing but have 13 years of mortgage lending experience.

Sounds like you are going the traditional route of getting financed through a bank (conventional lending) for this deal. I'll build on what Mitch S wrote which is to say most (bank) lenders have a minimum threshold of $50-$75K loan amounts. 

However, you may find your local community banks to be a source of funding through their own portfolio (which means they will hold and service the note). Interest rates may differ slightly from conventional lending simply because of the type of deal and/or property being financed.

To answer your question, yes, banks want to see 2-years work history. Not necessarily at the same company, but within the same line of work, make sense? However, there are slight variations. For example, if you graduated with a 4-year degree in Petroleum Engineering and have been working at Exxon-Mobile for the past 9 months, the underwriting guidelines should say that is acceptable.

Also, typical bank loans require down-payments. Private lenders or 'hard money' might be one avenue to explore for this deal, depending on what your strategy is with the property. Buy and hold? Or fix and flip? Wholesale? What's your exit strategy?

These are the types of questions you need to ask yourself when looking at your deals and financing types.

Good luck and feel free to contact me if you wish to discuss further.

Cheers.

John

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