Getting a Loan

5 Replies

Hello All,

I am interested in purchasing a duplex in Tampa, Fl to use as a rental property. I'm looking to stay around $60k for a loan with 20% down. I know at that price I will have to put in some sweat equity.

I just started my first full time job about 4 months ago. Before that I was in the same industry, but only had part-time, contract, freelance type work. My salary is $43k. My credit score is 750ish. I would like to manage the property myself most likely.

Will I have any trouble getting a loan from the bank?



@Dylan Tozier welcome to BP!  I think you should be able to get a loan.  You should start interviewing mortgage companies/banks now.  They are FREE to talk to and gather info from.  Shop around and make them want your business.  

@Dylan Tozier ,

You never know but if what you say is true then I would think they would be tripping over themselves to lend to you. Just because your credit score is high does not mean they will like what they see on your credit report. It depends on what type of loans you have on there but if you are just getting started that is likely not going to be an issue. Sometimes they like to see you having a stable job but often times they just want to see one or two paystubs that verify your income.

The big hurdle you may have is debt to income which you did not provide details on. What the banks like is in the 40% range give or take but the lower the better. Some will go higher, some will only accept less. They will take your gross income (before taxes are taken out) and add up any expenses that are reflected on your credit report, i.e. car loan payment, home loan payment, credit card payments, etc. To this they will add what your new mortgage payment will be and all of the expenses will need to be below their required debt to income ratio. Example: you make $3500 per month. You have a car payment of $250, rent (or current home loan) of $500, and $250 minimum payments on credit card balances. Say your new mortgage payment would be $400. Then your D to I ratio would be $250+$500+$250+$400=$1400 / $3500 = 40% and you should be good to go.

If you are buying this as an investment property, though, they will likely want 25% to 30% down.


Dylan Tozier I'm not sure about home prices in the Tampa market, but just remember that if you are looking to finance your purchase, the home must be in decent enough condition that a bank will lend on it. I know you mentioned being willing to put some sweat equity into the project. However, if you are looking at a house that has major issues (roof, foundation, etc), a bank may not finance the purchase.

@Dylan Tozier  I would reach out to Aaron Chapman who is on Bigger Pockets if you are looking for a conventional loan with 20% down.  He has done numerous loans for my clients and knows how to get the deal done, most recently he worked a big name Hollywood client of ours with a very complicated underwriting.  I seriously doubt other lenders could have gotten that done.  You did mention sweat equity needed; lenders will require and appraisal of your property and that appraiser will need the house to be 100% fixed up for them to complete the appraisal and submit it to the bank, otherwise the loan will not be able to be done.

not at all but go FHA as they do financing 96.5 percent of purchase price with 3.5 percent down , down to a 580 credit score your in great shape to get a loan also they do this financing for multifamilys 1-4 units and single familys

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