Can I get a mortgage?

Question

Tom S. · Answer

@Karsen Wynn  Can you have your parents co-sign on the mortgage?  That might be the easiest way to go.

Karsen Wynn · Answer

yeah your right @Jeff Dulla thanks for the feedback! I think the biggest problem is finding a rental deal that would support a positive cash flow under that financing

Jeff Dulla · Answer

@Karsen Wynn I think subprime is obviously a dirty word and these are actually called Non-Prime. I think they are quite a bit different than anything you have seen in the past. Most companies doing these are very heavily regulated and have to take the right approach to do these loans. I have heard many are getting rated by Fitch, Moody's, etc again.

There is a serious trade off for using these but they are great loan programs if you are trying to do something outside of the bucket of conventional financing. Any other products you would talk about on this site - private money, hard money, etc, are going to carry the same higher costs. You are asking for an exception to be made to the rules of the majority of conventional lenders out there.

Karsen Wynn · Answer

@Jeff Dulla so a sub-prime mortgage? I'm sure those interest rates are sky high. Thanks for the reply btw!

Jeff Dulla · Answer

@Karsen Wynn Even if you find a part-time job, they are going to want a two year history of you having part time employment in order to give you credit for that income.

Your best bet is going to be to go through a Non-Prime/Portfolio style loan where they are approving you like they would a commercial property - based on cash flow and some other metrics that do not require you to have income. Rates will be a solid amount higher on this program and you will also have to pay points to acquire it.