Financing Deal When Relocating and Finding New Job

2 Replies

I am looking to relocate and when doing so would like to buy a SF home to live in for 1-2 yrs while we rehab it then turn it into a rental. I have found a decent REO that the numbers work well on, having both good equity in the end and positive cash flow as a rental. Now I need to figure out the financing side.

I called a number of banks/lenders/brokers and got a fairly consistent response that I need to have a job for at least 30 days before they would loan to me. I am currently employed and have been consistently for many many years but when I relocate across the country I will have to find something else. I plan on doing a short term military active duty opportunity to get us settled back into the area and allow me to interview, etc. Being as this is short term (4 months or less) it will not qualify as employment. 

Does anyone have any suggestions on what avenues of finance I might be able to explore that will allow for the purchase of such a REO and the necessary rehab expenses? Ideally we would be able to secure the house now while still across the country from it so that we could get the work going prior to our arrival. I do plan on finding a job once moved but I'd hate to have to rent for a year or buy something that isn't necessarily going to build my rental portfolio. I also can't bounce too much as I have a wife and child to consider.

One thought was to have a family member (sister in law) pull the mortgage with myself and her on the note/title. We couldn't do an FHA bc she (family member) won't be living with us but she does have good credit and a good job. My wife and I also both have excellent credit. Would this work possibly?

Otherwise, does this seem like a good hard money option? Any other thoughts? Any ideas are greatly appreciated and thanks in advance.

Are you employed right now?  Check with a broker regarding the legalities  , but could you buy the house as a second home while you have a job, and than just move in to it later? You would have to be able to support the home and your current home? 

Just a thought? 

Also have you talked to a VA loan broker to see if they can help you? I personally find mortgage brokers to be the best to ask. I know we can't be approved through a bank but have no problem through broker. Heck Wellsfargo will buy all of our loans but won't lend to us LOL

Good luck

Thanks @Elizabeth Colegrove . I used my VA loan on another home in TX that in lived in for a bit and now rent out but I'm wondering if I should refi that to free up my VA benefit. Not sure I'd be able to use that on this home as it needs some work to hbee "livable" I think but would be nice to have available again.

I am employed now so could do a second home. I will get in touch with the broker on that although not sure my income would fly in their eyes as being able to support both.

In trying to explore all options could hard money be used on this until I'm moved and get permanently re-employed? Once re-employed I could refi into a conventional. My options are somewhat limited being as the house is an REO that needs work.