credit needed to get mortgage for first investment property

5 Replies

I believe i want my first property to be a duplex or a 4 unit and 'house hack" my question is how will i get the loan? I'm 19 years old, i have 2 credit cards and a car loan, i have plenty of money to fund the down payment expecting to pay on maybe a 60 or 70k house 

Congrats on having the vision and the savings at your age!  I wish I could have started that early.  Ask for credit increases on your credit cards to lower the revolving debt and raise that aspect of your credit score.  As long as you are not carrying a balance over every month you should have the credit to secure a loan.  Do you have the income to cover the bank's requirements?  Get out of the mirror (sorry, had to make a comment about the mirror-selfie profile pic), put on a tie, and go talk to someone at your local bank to get some profession input.  It would be particularly helpful to go to the bank where you have the money saved, so they know you are serious about it and have saved the money.   

If you have a car loan paid on well, you probably have the score needed to secure a mortgage.

if the car note is close to the financed amount of the house you want, that will be really good as well (your 'high credit' amount)

next thing you have to look at is debt to income (DTI). what are you making at 19 that would allow you to have a car, and a house? Most lenders are going to want you to be at 35-40% of your gross income for your note.

if you think you have that all lined up, then just start talking to 2-3 mortgage brokers for pre-approval letters. 

Note taken! And I make 49k a year after taxes and one of my cards just got bumped up 3000 dollars by itself and the other goes up 100 every month, and my DTI is good all I have is my rent, car, and cell phone that's not much I'm capable of putting a lot of money away each week

@Jacob Hollen

  go for it.... buy 4 doors rince repeat and by the time your 30 your will be on your way.

just keep that credit perfect and do not take on any other consumer debt

I agree with @Jay Hinrichs.  I've been involved in real estate for years and have always made money.  Great job starting young!

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