what options are available in my situation?

Question

Hello BP nation, I would love to get your inputs.

This is my scenario. I want to purchase a OO duplex w/ a partner. I have 30k in capital and would like to use minimal cash outlay. I'm looking at 100k-150k properties. I would like conventional loan 30 yrs @ 5%. My credit is 810. I'm currently seeking employment, work history from 2 years ago is fine. However, before those 2 years I don't show a whole lot of income. My partner's credit is 760+, work history is okay and currently employed at his job for over a year @ 50k/yr, and does not have enough for down payment.

If we can't get approved by the banks, what other options are available that would allow both of us to be on title and loan?

Jon Holdman · Answer

FHA might be an option, too.  They will have lower down payments.  Used to be and may still be 3.5%. But I recall someone posting recently its been bumped to 5%.

Are you married?  That affects the qualification process.

Work on getting a job.  That will affect the qualification process a lot.  As in its really tough to get a loan without income.   If you're going to be in the same industry as before you should be fine.

I recommend trying to talk to lenders or brokers in your area about the specific of your situation.

Edward Burns · Answer

Based on the information you provided, I do not think you will have a problem getting a bank loan.  I would suggest a 10% down payment.  The financial institution may want insurance to pay off the loan in case something happens to either of you.