How To Get A Loan When You Can’t
Hey BP,
Normally when I get a loan for an investment property I am able to get a DSCR loan without a problem… however now I'm looking to buy a duplex that I'm going to house hack, and it seems like it isn't possible to get a DSCR loan if I'm going to be living on part of the property.
I’m self employed, but only have been for a year, so I don’t have proof of income for 2 years. Is there any way for me to get a loan without having to provide proof of income?
I have plenty of money for any sized down payment, and good credit, but even so I don’t know if I would be able to qualify for any loan with out proof of income.
Does anyone have any thoughts or advice other then seller financing?
Thanks!!
Hi @Ezra Henderson, I know a lender that can do a DSCR program for house hacks.
Let's connect so I can share the info.
@Ezra Henderson
Using hard money would be your only other option if you can't use a DSCR loan. It's not ideal because the terms are typically shorter and you would have to refi in about 6 months-1 year as well as the interest rates are higher, but that's about the only option you have aside from having a parent take the loan out for you.
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Real Estate Agent Ohio (#2021001448)
- (614) 412-4565
- https://www.reafcorealestate.com/
- [email protected]
A lof of HMLs won't do owner occupied, just FYI.
@Patrick Drury I don’t mind using hard money temporarily, but are the refinancing rules different then just applying for a normal loan? Or would I still have to show proof of income. Thanks!
For HMLs you do not need to show proof of income, just liquidity. Typically enough for 6 month's of interest payments and 10% of the rehab holdback, if there is one.
Yeah but I’m talking about refinancing out of the hard money loan and into normal financing after 6 months to 1 year… when I refinance with a bank will I have to show proof of income?
Quote from @Ezra Henderson:dscr will use the rental income to qualify.
Yeah but I’m talking about refinancing out of the hard money loan and into normal financing after 6 months to 1 year… when I refinance with a bank will I have to show proof of income?
But if I refinance out of a HML and into a more conventional loan (not DSCR) will I have to show proof of income?
@Ezra Henderson - possible to line up a relative to be a non occupnat co borrower ? 2) there are some conventional loans that might work with one year of tax returns 3) when reporting tax returns - try to show as much positive net income as possible
@Ezra Henderson
I would consult a lender or a hard money lender in your area and ask them your questions. They will be able to best help you!
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Real Estate Agent Ohio (#2021001448)
- (614) 412-4565
- https://www.reafcorealestate.com/
- [email protected]
Quote from @Ezra Henderson:
Hey BP,
Normally when I get a loan for an investment property I am able to get a DSCR loan without a problem… however now I'm looking to buy a duplex that I'm going to house hack, and it seems like it isn't possible to get a DSCR loan if I'm going to be living on part of the property.
I’m self employed, but only have been for a year, so I don’t have proof of income for 2 years. Is there any way for me to get a loan without having to provide proof of income?
I have plenty of money for any sized down payment, and good credit, but even so I don’t know if I would be able to qualify for any loan with out proof of income.
Does anyone have any thoughts or advice other then seller financing?
Thanks!!
I agree with Patrick on the hard money loan. Is there anyone you could partner with? They get the loan, you put the money in and rehab? Do it however you can, it never hurts asking people.