would they like me? would they really like me?

Question

if this was a perfect world, i should a have a job by the end march. then in sept when i turn 18, i plan on buying my first piece of property. i'm not going to college until next fall. would banks or lenders, approve me for a loan, considering i'd have no credit, no debt, and a job? or would i need more to impress them?

:D <this or :protest: <this

:D <this or  :protest: <this

Jeff Takle · Answer

Good advice. In addition, you will probably be able to grab some financing using a "no doc" or "low doc" loan. These come with higher interest rates, but they don't verify much/any of your information so you'd likely be able to get something.  Here is the basic hierarchy of low documentation loans:

Full doc loan -- normal interest rates
Verified income, verified assets (VIVA)
Verified income, stated assets (VISA)
Stated income, verified assets (SIVA)
Stated income, stated assets (SISA)
No doc loan

Sliding up the scale will reduce your interest rate. No doc will be expensive, but it's a way to get a few hundred thousand dollars (may be capped at $417,000-ish). Not all lenders offer these programs so you'll have to shop around. Last suggestion: be totally honest with your lender  mortgage broker about your situation, age, income, etc. If you mislead them, it will likely come out in the process and you'll miss closing dates, sales will fall through, etc. By the same token, no need to gush all the details up front. Just say you're seeking a no-doc loan, with stated income/assets and then just answer their questions as they pose them to you. Good luck!

Marvin Valencourt · Answer

First, let me say I wish I'd been smart enough to listen to my old man and "start out" when I was your age.

As to your question, no, the loan officers probably aren't really going to like you if you have no assets (job, credit score, collateral, cosigner are assets). Don't take it personal though, it's their job to make sure they lend money to those who will pay it back. Essentially it boils down to credit is only easy to get if you don't need it. Just because you're a risk doesn't mean it won't happen though, the key to getting where you want to be is to keep trying.

If I had it to do over again I'd look to find the best available job (even if you're in college) and move into everything I bought until I was 25 or so. Owner/occupant loans are easier to get and there are many programs for the "first time buyer". Try to avoid mortgages that require you to stay as the owner occupant for more than a couple of years. When the numbers work to turn the current place into a rental it's time to move on. As you develop assets (starts with that job and first house/condo/townhouse...) then you can branch out into other "methods". This means something of a nomadic lifestyle but if you're anything like most of the young adults I've met (and once was) that shouldn't be a big deal being as you probably can move everything you own in your car so moving every year or so isn't a big deal. ;)

Considering the conditions most teenagers will tolerate and depending on your construction skill levels you might want to be on the lookout for a rehab deal. Living in a construction mess is a lot easier when you're younger. Consider volunteering with Habitat for Humanity if you lack construction knowledge, you can pick up a lot from some of the guys that work on those homes.

N/A N/A · Answer

In order to apply for  a loan you are to need credit, job stability which shows income, and money to put down or closing cost. Mayve you can get a cosigner Mom or Dad? or you can learn how to control properties without credit or banks, but you would some money; I'm fairly in REI so I suggest to learn from members on this site.