How to get a loan without consistent income?

4 Replies

Hey everyone,

I am a college student in a town with a university of about 25k students. I started college this past August and signed a lease through this upcoming July. However, the owner of the "condo" (basically a 4br-4br individual home inside a neighborhood with about 100 identical homes) sent an email saying she is planning on putting the condo on the market. Now, I say all this to get to the point that I am now contemplating buying another little house or something that I can house hack. The problem is, I have no consistent income. I have worked part time jobs for the last 2-3 years but I don't feel it has been consistent enough to get a loan. I do have enough money saved up from working and investing for a down payment on an FHA loan for a house up to about 125k (could probably get around a decent 3-2 house in my area for that price), and I'm sure my parents would co-sign with me if that's what I decide to do. Will this be enough to get a loan, and if not how could I finance a property?

Well, the easiest thing here if your parents would do it would be for them to buy the house and you pay them just like you would pay the bank, plus some extra money for their trouble. You could also find a seller willing to seller finance. But if you don't have consistent, solid income it will be difficult to get any kind of traditional funding. 

Originally posted by @Kade T. Brunson :

@JD Martin the parent thing sounds like a good idea, but how would that process go? If we were to do that, should they get a loan and buy the property and then do owner financing?

 They get a loan to buy the rest of the property, you provide the down payment, you live there and manage the rooming house for the rest of your time in college and pay off the mortgage steadily with the rent from the other units. When you graduate you either keep the place if you get a job in town or sell it, if not. Regardless, when you sell, you take back your down payment and figure out how to split what's left with yout parents.

Or something like that. Jesus, Kade, you've got parents with income and credit. You hit the jackpot in life. Be the enterprising young man we know you can be. You can work it out with them, probably over dinner. They're not going to turn around and rip you off without an ironclad contract.

@Kade T. Brunson First off, congrats on finding REI so young! Time is the most important asset in the game of investing!

For you first deal, the options listed above are all viable. An option you also have is finding a deal that cashflows and bring in someone as a partner (I would highly recommend partnering with someone who has real estate investing experience). If you bring the deal and hustle there will always be someone out there interested in financing it and having a piece of the pie! Side bonus to this is that you can work with someone who has more knowledge than you and you will have a fountain of knowledge to tap into! 

Best of luck and keep at it!