Purchase Primary Residence (house hack) w/o Income??

Question

How would I get a loan for a new primary residence without income verification? I’m thinking of buying a duplex and living in 1 unit, renting out the other though I’ve quit my job and currently living off of my rental properties.

Thanks in advance!

Chris Mason · Answer

Such a loan, as you described, would be against the Dodd Frank Act that was passed after 2008.

The obvious solution many try is to claim it will be an investment property.

As a result, most non-qm lenders will not do a DSCR, or other investor loan, for someone that doesn't already own a primary residence.

I suspect it will be more useful to focus on why you would need such a loan. There are plenty of alternative documentation type programs out there, for example, that will work on a primary residence.

Sasha Mohammed · Answer

@Chris Mason hit the nail - consumer mortgages need to qualify with ATR rules (ability to repay).

That doesn't mean you need to have a job or even run a business. a few other types of non-traditional qualifying income:

* schedule E - rental income, if your properties are filed net-positive on sch. E, you could use that income to qualify for a primary- some loan programs will let you use the rental income from the secondary unit from the duplex as well for qualifying purposes (sounds like you have Landlording history)* Capital gains income - need a 2 year history, but this works so long as you have additional assets to sell * Asset depletion - if you have a chunk of cash, retirement assets, stocks/bonds, even real estate with equity can be used here.* i believvvvvveee you can use income from a promissory note as well, guidelines apply

An experienced mortgage professional could look at your situation and hopefully guide you into how to make it work!

Katherine Blazer · Answer

If you are living off your rental properties. You should be able to use 75% of the income for properties income not claimed on your last taxes, so new properties. They will need leases and mortgages/insurance extra. If you have owned the property for over a year, we can pull the income off your Schedule C or E, depending on how you claimed them. We can also add back in depreciation and a few other items you may have written off.

Izaiah Barba · Answer

I have a lender that could help with this. They are based out of California and can do loans in NH. It's a nonconforming loan program with competitive rates. The company is Change Mortgage. Happy to introduce you to one of the lenders I have worked with in the past!

Joe Norman · Answer

You do have income, just not W2 income. There are plenty of traditional lenders out there who will use Schedule C and Schedule E income, although most will want to see 2-3 years history. I've had great experiences with my local rep from Primary Residential Mortgage - they lend in many states PM me if you'd like a referral to a local rep in your area.

Albert Bui · Answer

We have a non conforming loan program for this with no job/employment/income (not even stated) however some states will not allow it like WA state for instance.

What state are you in?n These states will not allow for the program District of Columbia, Maine, Maryland, Nevada, Pennsylvania, Washington, West Virginia.

At at 660 fico its 35% down, 680 fico its 30% down, 700 fico is 25% down, and 740+ its 20% down no income, min 12-24months of reserves required.

20 maximum financed properties allowed and only 1 month of asset seasoning so you dont need 2-3 months of bank statements just FYI.

Rates are in the 9’s and interest only is available for 25% down+, ARM’s and Fixed available.

This is owner occupied and second home only.

@Matthew Kwan @Carlos Valencia -

Caroline Gerardo · Answer

You need large enough down payment for the other half of the duplex rents to cover the PITI plus cash reserves. To do DSCR you might need 50% down. Where do you reside now?

Jacob St. Martin · Answer

Hello Dustin, as other people have mentioned a DSCR product is probably your best course of action as they evaluate the finances of the deal, not your personal finances. However, if you are trying to benefit from the low money down and low interest rate normally associated with a conventional loan, you could consider trying to find someone to cosign and give them a cut of the cash flow and equity in return.

Stacy Raskin · Answer

@Dustin Sanders, what state do you live in? All primary residence loans will require some type of income verification. That doesn't mean you need to have a traditional job. There are loans that use bank statement deposits or if you have a large amount of assets, an asset depletion loan.

Izabella W. · Answer

There are property investment loans that are based off of future income produced instead of your income and credit. It's been mentioned on BP before but I don't remember the names of the institutions that provide those loans (perhaps a search would yield some results). If you're living off of your rental properties and have been filing your tax returns with that income, you could use your tax return. If you haven't had to file your taxes with that income yet, there are some lenders (i.e. credit unions) that might work with you if you provide copies of leases.

Purchase Primary Residence (house hack) w/o Income??

Most Popular Reply