Rental Property Investor · Austin, TX · Member since 2017 · 11 posts · 2 votes
Hi, all,
I'm seeking to purchase a duplex, preferably a 4-plex, in Austin, TX within the next three months. I'm trying to understand what I need, financially speaking, before I go to the seller's agent to express interest.
Traditionally, I'd just get pre-approved and what not. However, I have had non-traditional income (i.e. non-W2, options trading, public speaking and rentals) for the past four years. Do personal lenders and hard money lenders have a pre-approval type processes?
I have funding for downpayment, repairs, and 1st year maintenance s; the units that interest me should cash flow well with a little fixing up, but it all means nothing if I can't approach the agent with a meaningful finance solution, right? So what are my options?
You can get prequalifed for a bunch of diff programs that are asset driven or income driven with the right verification. The more off the program the higher the interest rate/risk for the lender.
@Adam Kecskes Look for local banks and credit unions and ask if they have "bank statement" lending. Some traditional mortgage brokers may have that as well.
Those loans are designed specifically for self-employed and other not-traditional situations and if available, will give you a standard pre-approval letter.
Private lenders and HMLs will provide you with a proof of funds letter, but unless those lenders have an NMLS number these loans cannot be used for owner-occupied properties.
Some HMLs let you print your own POF from their website. A sharp seller's agent will recognize these and know that they can be completely bogus, so there's a risk with those.
You can get prequalifed for a bunch of diff programs that are asset driven or income driven with the right verification. The more off the program the higher the interest rate/risk for the lender.