Loan Advice - 1st rental property Northern Virginia (Not Norfolk)
Hi everyone,
I am 21 years old and am looking at purchasing my first rental here shortly. I ran into a snag when trying to get pre-approved for a loan. My lender said that I can't get a loan for an investment property because I don't have a credit history aside from being an authorized user on my parent's card. Lender said I would qualify for a primary residence, but not an investment property.
Any tips on how to receive financing for this first property? Credit cards are in the mail to start building personal history, but wondering if there are any other options out there.
The easiest way to get funding is through hard money and private money lenders. Approvals are primarily based on your deal and not your credit history or income
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Lender
- The Trinity Company, LLC
Thanks, Miranda!
@Bryce Carr hey Bryce I’ve used hard money several times on duplexes on all the way up to large office building. Great strategy! Happy to help.
Thanks, Ryan!
Thanks, @Chris Seveney!
- Flipper/Rehabber
- Pittsburgh
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@Bryce Carr I would not recommend using hard money if this is your first purchase... stick with conventional.
Here are some questions...
Do you own a primary residence already?
Can you house hack?
How wide of a net are you casting for properties?
@Nicholas L. I do agree with what Nicholas is saying. DSCR loans will typically have a minimum FICO requirement of 600+ so there is a chance that option is not available. A bridge loan will likely only be for 12-24 months and the rate will be upwards of 8-10% just depending on the scenario.
One positive though is potentially that 1-2 years will give you the time you need to establish a better FICO score and once ready you can switch things over to a conventional loan or DSCR.
If you find the deal you can always bring a partner on board as well that has the credit. Private money lenders will be able to help you as well. Most private money and hard money lender are willing to lend as long as it's a deal!
@Bryce Carr
hard money! most wont care about your job! if you have no experience you'll pay a higher rate but you avoid the lionshare of all of the frustrations of working with a conventional lender. happy to share my HML contact