Lending Advice if Unemployed?

[Michael Holmes]

Hello,

I am looking to purchase my first investment property and considering using the BRRRR method, using my own capital and some hard money. When I go to refinance, does it matter that I am currently unemployed? I don't want to necessarily go through the whole process only to find I cant get the property refinanced.

Mike

[Chris Mason]

Originally posted by @Michael Holmes:

Hello,

I am looking to purchase my first investment property and considering using the BRRRR method, using my own capital and some hard money. When I go to refinance, does it matter that I am currently unemployed? I don't want to necessarily go through the whole process only to find I cant get the property refinanced.

Mike

 I've done mortgages for folks based on nothing but the rental income, but it's fairly unlikely. Net positive cashflow on that thing would need to be 2.5x your personal housing expense and all of your consumer debts would need to be paid off. 

Other than that, start google searching "non qm mortgage broker [your area name]" and see what comes up. 

[Roman M.]

Asset deplition loan programs are usually designed for this.

[Kevin Romines]

To add to what @Chris Mason has said. All loans will look for a source of consistent, eligible income. However there are what is called Investor Cash Flow loans. On these loans, you don't put any employment or income on the application. The only measure of a debt ratio is that the house must rent for the same or more than the PITI mortgage payment. If so, you good on the debt ratio. The LTV and interest rate is dependent on your credit score. Generally speaking the max LTV on these loans is between 80-85% of the appraised value.

This is a Non-QM loan, so you would need to find a lender in your state that does these kinds of loans. You could call your local title companies to ask them, who in your area has done these loans in the past and start with their recommendations if they have any?  

I hope this helps?