Getting preapproved workout income?

Question

Getting preapproved *without* income

Hey Bp,

I’ve finally decided it’s time to purchase my first investment property (live in house hack). I have savings from my days of bartending a few years back and what I’ve been paid “off the books” since the start of the pandemic. Also, I have my IRA and brokerage accounts totaling 65k and about 25k in crypto. I’d be comfortable putting 20% down on a $200,000 house but would prefer to do 10% or less. This will be a fixer upper to rent.

The question is, is it possible to get approved for a mortgage without having a source of income for the last couple of years? I will be moving to Richmond, Virginia in the fall and plan to begin working 40 hours a week welding, with good pay.

As of right now I am planning to get a three bedroom fixer-upper.

Thanks!

Forrest Hollingsworth · Answer

thanks for all of the info Ron, very insightful! Hard money I’d tempting, but only with a good 6 month strategy I’d think? I may just have to see if a buddy is interested in co signing/partnering with me. Thanks again

Ron Etienne Younger · Answer

Forrest, congrats on your pending move to RVa.  I would recommend talking to a few lenders.  Without income, conventional/FHA financing is not likely.  Hard Money with a sizeable down payment (under an LLC and non-owner occupied) is more likely. You'll need your exit strategy and since you mentioned investment/rental income. sounds like a BRRR.  For a BRRR, you'll need to solve the W2 issue.  Hard Money or other could have a long term to get you a year of W2 but would eat up your cashflow unless you obtained a super deal.  Other than HM, you may be able to partner with someone that could get approved.  Recommend talking to a lender and your network.  All the best.