Have cash but no income...

6 Replies

So my wife and I are getting ready to relocate to another state. Once we find a new location I would like to buy a cheap fixer upper sfh to live in while we build our new lives. Of course when I go to purchase a place, neither of us will be working or have any w2 income. I will have some 1099 income - like maybe 20k per year.  I will have around 200k in cash though. 

What type of financing would be an option for us? Would I have to buy outright and then hopefully cash out refi after 3-6-12 months? Will a lender consider a refi based on equity alone?

I have had this plan to relocate in the works for many years but never realized how it might be difficult to finance a new place.

You can always look into private money lenders that can lend on properties for consumer purposes. Rates will be higher, you can see if seller is open to a seller carry. I personally would buy all cash and then refinance. However, I don't how long the refinance would take. I would suggest reaching out to a loan officer/mortgage broker near the area you plan on living in to see what programs are offered and what the requirements are

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Originally posted by @Jackelyn Gonzalez :

You can always look into private money lenders that can lend on properties for consumer purposes. Rates will be higher, you can see if seller is open to a seller carry. I personally would buy all cash and then refinance. However, I don't how long the refinance would take. I would suggest reaching out to a loan officer/mortgage broker near the area you plan on living in to see what programs are offered and what the requirements are

 Hi Jackelyn, if I buy all cash and own the house and refinance later...at time of refinance do I need to have a job and/or need to verify income?

@Steve Dorman , I think you have a consensus here. Pay cash for the fixer-upper and refinance it 6-8 months out. Unless you can show an income, traditional banks are out. To refinance, you may a lender may still require you to show some form of income coming in as well. When you do, make sure it is in the same field of employment. Your best bet would be to seek out a smaller bank that is willing to keep the loan (portfolio lender) rather than sell it on the secondary market.

Good luck!