rgastald, Home Buyer in Philadelphia, PA

Hello Financing for home buyers with little income.

Asked by rgastald, Philadelphia, PA Thu Apr 11, 2013

I want to buy a house in Fairmount, Philadelphia. I work part time at the moment so I doubt the bank will be able to give me the mortgage I need to
complete the purchase.

I have cash to put down for the down payment and even more; but I would like to put down only 20%

Does anyone know a hard money lender or non traditional lender willing to
provide funding for a owner or non owner occupant home ( I am not sure if I will live in or if I will rent it out..)

thanks

Help the community by answering this question:

Answers

3
I have someone that might be able to help you. What price range are you looking for? Send me an email and I will send you the lenders information. I cannot guarantee financing because I don't know your situation but he deals with investors that may or may not live in the home. There is no fee for using my professional services for once you get preapproved.

Jon Unrath
Weichert Realtors Media
267 968 1505
JUnrath12@comcast.net
0 votes Thank Flag Link Thu Apr 11, 2013
truth is all lendors base decision on borrower's ability to repay
the loan. lack of steady and reliable substantial income is a huge detriment. I would say you sound like a potential victim of predatory lending and likelihood to lose your initial investment.
0 votes Thank Flag Link Thu Apr 11, 2013
rgastald,
Lenders look at credit first, income second, the asset next. If your income is part time, chances are it isn't very much. If its part time and short time, which many part time jobs are, they will have a hard time expecting it to be permanent enough to rely on.
Hard money lenders are also called equity lenders. They want a lot of cash into the deal and the rest of the deal has to make sense. They charge higher fees and rates than conventional or portfolio lenders. You have to still show them you have the capacity to pay them back. Hard money loans are also typically short term, so you'll need to have permanent financing lined up in 3-6 months in many cases.
Adding that this is likely to be a non owner occupied property only makes this more complex. NOO loans generally require 25% down to start and they still want the income and assets to make sense.
You can talk to some mortgage brokers; ask if they have portfolio products which offer different guidelines than conventional. I'm not aware of any way to do what you are asking, but that doesn't mean it doesn't exist.
Decide a few details before you proceed though. Will you live in it or not? How much will you put down and what will you have in reserve? Can you go to full time employment or get a second part time job?
0 votes Thank Flag Link Thu Apr 11, 2013
Ignore that first line. Trulia doesn't have an edit feature in these replies.
Flag Thu Apr 11, 2013
Has friend staying in the house,
Congratulations on your credit score. You've worked hard to earn that. Don't do something you'll regret and have that destroyed. Same with your down payment, you've worked hard to earn that money.
From my perspective you have 2 choices, keep doing what you are doing and rent or get full time employment and buy.
Using a hard money lender would put everything at risk and under the best case scenario you are overpaying loan fees and interest rate.
I'd rather give you the answer you want, but this is the answer I have based on what you are telling me so far.
Flag Thu Apr 11, 2013
thank you so much. I have 800+ credit score; almost perfect.
I have been working for the same company for 2 years; from feb 2013, however, my time was cut from 40 hrs down to 20; my salary from 50k is no down to 25K;

I have 100K saved but I don t want to put it all down
Flag Thu Apr 11, 2013
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer