Real Estate Agent · New York City, NY · Member since 2019 · 36 posts · 15 votes
Hi, I just went to BPCON21 and I came back so excited and fired up to buy my next house. I don't have any W2 income and my 1099 income won't support a mortgage. How can I BRRRR? I know a hard money lender will loan you money on how good the deal is, but after that how can you refi without W2 income?
Lender · Indianapolis · Member since 2021 · 18 posts · 9 votes
4y
Hey Monica!
The banks are regulated and you have to show enough income on w-2 or tax returns to get a loan through them. There are lenders with hard money loans that mimic the terms of bank loans.
Investor · Austin TX · Member since 2018 · 151 posts · 165 votes
4y
Hi Monica!
I was also at BPCON and it was so unbelievably amazing! I'm in a similar position as you having recently left my W-2 job. There are a couple options you can use here:
Partner with someone who does have W2 income that can act as a cosigner on the loan.
Use a hard money lender that can do single family homes (Lima One, Corevest, Aloha Capital, etc.)
If you have equity in your home, you can take out a HELOC to use as a down payment, as the above lender will typically require you to bring 20% for a down payment - or sometimes more.