Low Income Mortgage
Author: creditbuilder
Posted: Sat May 07, 2005 7:50 pm
Post subject: Low Income Mortgage
Is there any way for someone only making around 18K a year to get a mortgage without a big down payment? I would like to purchase about an 80-90k dollar house to rent out. My only bill is my car insurance, so I could afford to pay the mortgage myself during times when it's vacant. How can I get lenders to take a chance?
Author: CreditCardGuru
Posted: Mon May 09, 2005 12:16 am
Post subject: Getting a Mortgage with Low Income
There is the old rule, what one doesn't know, won't hurt....don't let them know....LOL. I know here a lot of people get foreclosed houses really cheap.
Author: homebuyer
Posted: Thu May 12, 2005 12:00 pm
Post subject: Getting a Mortgage with Low Income
CreditCardGuru wrote:
There is the old rule, what one doesn't know, won't hurt....don't let them know....LOL. I know here a lot of people get foreclosed houses really cheap
The problem with that is if you have a tenant you need to evict for any reason, I don't think you would have legal recourse to collect back rent from them or anything if you are renting out illegally. If you turn them in for trashing your house or leaving without paying their rent, you will also be getting yourself in legal trouble for having a tenant in a home being financed by FHA or other types of loans that don't allow income properties.
So if you do rent out your new home illegally you will be screwing yourself in the end if something should happen.
The status of the loan (investment property vs. owner occupied) shouldn't have any effect on your ability to take your tenant to court in the event that you had to evict them and collect back rent. That's what the lease agreement would be used for in court. I'm not a legal expert but I highly doubt that the court would base their decision on the occupancy status of your mortgage; it's simply a matter of a tenant not paying rent. Here's your escape: say you bought a house with the intention of living in it but after the loan closed (because of life changes) you decided to rent it out. You're not required to refinance your home just because you've decided to rent it.
Creditbuilder, you shouldn't have a problem getting a loan for a house with little or no money down. Debt vs. Income, you wouldn't qualify so you would have to have a stated income loan. You can get 100% financing but your middle credit score will have to be about 720+. (There are a few other ways to do this even if your cs is <720.)
Author: creditcardguru
Posted: Tue Jul 19, 2005 7:49 pm
Post subject: Getting a Mortgage With Low Income
Someone may wish to verify this, but I once heard that the lender would require proof (a track record) that the house would rent for a particular amount per month before they would loan on the property. Otherwise, you could claim that you could rent it for $1,500 a month, while it really would only rent for $700.
Author: BestMortgageInfo
Posted: Fri Sep 09, 2005 4:13 pm
Post subject: Getting a Mortgage with Low Income
What happens is that the appraisal is a 2 part deal. 1) Normal value of the home 2) "Market rent analysis" which determines the rental value of the home.
For a lot of lenders, even if you are not currently getting that much rent, they go by the figure in the rent analysis
Posted: Sat May 07, 2005 7:50 pm
Post subject: Low Income Mortgage
Is there any way for someone only making around 18K a year to get a mortgage without a big down payment? I would like to purchase about an 80-90k dollar house to rent out. My only bill is my car insurance, so I could afford to pay the mortgage myself during times when it's vacant. How can I get lenders to take a chance?
Author: CreditCardGuru
Posted: Mon May 09, 2005 12:16 am
Post subject: Getting a Mortgage with Low Income
There is the old rule, what one doesn't know, won't hurt....don't let them know....LOL. I know here a lot of people get foreclosed houses really cheap.
Author: homebuyer
Posted: Thu May 12, 2005 12:00 pm
Post subject: Getting a Mortgage with Low Income
CreditCardGuru wrote:
There is the old rule, what one doesn't know, won't hurt....don't let them know....LOL. I know here a lot of people get foreclosed houses really cheap
The problem with that is if you have a tenant you need to evict for any reason, I don't think you would have legal recourse to collect back rent from them or anything if you are renting out illegally. If you turn them in for trashing your house or leaving without paying their rent, you will also be getting yourself in legal trouble for having a tenant in a home being financed by FHA or other types of loans that don't allow income properties.
So if you do rent out your new home illegally you will be screwing yourself in the end if something should happen.
The status of the loan (investment property vs. owner occupied) shouldn't have any effect on your ability to take your tenant to court in the event that you had to evict them and collect back rent. That's what the lease agreement would be used for in court. I'm not a legal expert but I highly doubt that the court would base their decision on the occupancy status of your mortgage; it's simply a matter of a tenant not paying rent. Here's your escape: say you bought a house with the intention of living in it but after the loan closed (because of life changes) you decided to rent it out. You're not required to refinance your home just because you've decided to rent it.
Creditbuilder, you shouldn't have a problem getting a loan for a house with little or no money down. Debt vs. Income, you wouldn't qualify so you would have to have a stated income loan. You can get 100% financing but your middle credit score will have to be about 720+. (There are a few other ways to do this even if your cs is <720.)
Author: creditcardguru
Posted: Tue Jul 19, 2005 7:49 pm
Post subject: Getting a Mortgage With Low Income
Someone may wish to verify this, but I once heard that the lender would require proof (a track record) that the house would rent for a particular amount per month before they would loan on the property. Otherwise, you could claim that you could rent it for $1,500 a month, while it really would only rent for $700.
Author: BestMortgageInfo
Posted: Fri Sep 09, 2005 4:13 pm
Post subject: Getting a Mortgage with Low Income
What happens is that the appraisal is a 2 part deal. 1) Normal value of the home 2) "Market rent analysis" which determines the rental value of the home.
For a lot of lenders, even if you are not currently getting that much rent, they go by the figure in the rent analysis
posted by CardRatings.com at 1:20 PM
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