Financing for Home

[Jerod McCarrell]

Hey everyone! I’m in a “unique” situation and looking for some guidance/advice. I’m currently a second year medical student here in San Antonio. My wife and I are currently home owners as we were able to afford a 250k property in 2021 (both of us were working). However, now that I’m in school, she is the only one working, making around 50k before taxes. We have a good amount of savings and some assets, but having difficulty getting a new loan in order to move out of this home to rent and move into a new home, due to her single income. How might we go about getting funding? Anyone have any options? Making payments is not an issue, just proving “on paper” to a big loan company is the issue. 

[Jay Hurst]

Quote from @Jerod McCarrell:

Hey everyone! I’m in a “unique” situation and looking for some guidance/advice. I’m currently a second year medical student here in San Antonio. My wife and I are currently home owners as we were able to afford a 250k property in 2021 (both of us were working). However, now that I’m in school, she is the only one working, making around 50k before taxes. We have a good amount of savings and some assets, but having difficulty getting a new loan in order to move out of this home to rent and move into a new home, due to her single income. How might we go about getting funding? Anyone have any options? Making payments is not an issue, just proving “on paper” to a big loan company is the issue. 

 @Jerod McCarrell    Has anyone told you what your debt to income is when you add a new mortgage to your ledger?  How much longer do you have before you are a resident? 

[Jordan Moorhead]

@Jerod McCarrell have you looked into househacking? You could buy a duplex in which case they'll use the rent from the other side to help you qualify for a mortgage.

That way you'd save money while living there and have a cashflowing asset when you move out. Plus you only have to live there for a year.

[Justin Hammerle]

Hi Jerod - given your circumstance if I understand it correctly; I don't think you will be able to qualify for any type of bank financing.  Your options are really limited to seeking financing from family/friends or from private sources.  There are limited options for private financing that allows borrowers to occupy properties.  If your goal is to acquire another property while renting out one and living in the other, rather than moving out of your existing home perhaps just buying a small investment property to rent is the path of least resistance.

[Sanat Bhandari]

@Jerod McCarrell Simplest answer: you could qualify for a bank statement loan where your last 12/24 months of bank statements are used to qualify you for a mortgage v/s your W-2 income

Complicated answer: it depends, a lender would have to look at your financials to determine the best course of action. Feel free to PM me if you need help with the same

[Jay Hurst]

Quote from @Jerod McCarrell:

Hey everyone! I’m in a “unique” situation and looking for some guidance/advice. I’m currently a second year medical student here in San Antonio. My wife and I are currently home owners as we were able to afford a 250k property in 2021 (both of us were working). However, now that I’m in school, she is the only one working, making around 50k before taxes. We have a good amount of savings and some assets, but having difficulty getting a new loan in order to move out of this home to rent and move into a new home, due to her single income. How might we go about getting funding? Anyone have any options? Making payments is not an issue, just proving “on paper” to a big loan company is the issue. 

 @Jerod McCarrell   We do a bridge loans all the time for the following scenario that make help in your case:  You want to rent your departing residence instead of selling however you need the rental income from the house to qualify for the next one. Which of course you cannot get until you move. catch 22.  We will give a bridge loan to allow you to buy the new house, then rent the departing residence, then refinance you  into a conventional loan using the rental income to qualify. 

No idea if that will make your numbers work or not but we have successfully solved similar scenarios to yours using the bridge loan.  

[Dawson Rosenberg]

yes would love to help you out!!