Private Lending & Conventional Mortgage Advice

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Andy Okamoto
  • Investor
  • Salt Lake City, UT
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20 year old Software student looking to invest in first property

Andy Okamoto
  • Investor
  • Salt Lake City, UT
Posted Apr 7 2022, 10:25

Hi everyone! My name is Andy and I am at the University of Utah as a CS student.  I have income from a variety of side hustles but, don't have the W2 to show. I am currently in the process of getting pre-qualified for a loan using my parents as cosigners. However, we are struggling to find the right loan for us because of my parent's low W2 income on the last two years of tax returns.

How should someone like me move forward? Waiting until after I graduate to get a well-paying software job to fund my real estate investments is something I already plan to do. However, I want to learn the process and purchase my first property now so I can learn the process and when I am able to independently qualify for loans, go all out.

Thanks all!

Salt Lake City, Utah

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Scott E.
  • Developer
  • Scottsdale, AZ
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Scott E.
  • Developer
  • Scottsdale, AZ
Replied Apr 7 2022, 11:15

The DTI (debt-to-income) and LTV (loan-to-value) ratios are some of the most important pieces of qualifying criteria to a conventional lender.

This means that without a cosigner who has enough income to support your new loan and all of their other debts, you aren't getting a conventional loan.

With that being said, I recommend you increase your income, learn as much as you can about real estate investing in the meantime, and perhaps pursue wholesaling if you would like to build up some capital while learning more about doing real estate deals.

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Logan McKay Zylstra
  • Realtor
  • American Fork, UT
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Logan McKay Zylstra
  • Realtor
  • American Fork, UT
Replied Apr 15 2022, 12:26

Andy, I have a creative way to get around DTI. Happy to connect and chat about it. I faced the same issue when I was in your position.

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Henry Clark#1 Commercial Real Estate Investing Contributor
  • Developer
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Henry Clark#1 Commercial Real Estate Investing Contributor
  • Developer
Replied May 28 2022, 11:50

@Andy Okamoto

Recommend you don’t invest right now. Build up cash and come out swinging in 2 years. To much downside potential right now.  Especially if you are involving your parents who should be moving to a conservative position for retirement. 

If you want downsize to a mobile home and house hack it. 2 br. 2 ba.