Iam interested in buying a house in Balto city for $37,000. I have a 20% down payment but no credit.

Asked by scottlittle60, Baltimore, MD Thu May 10, 2012

I will be renting 3 rooms in the house to clients from rehabs, transitional housing, etc. The mortgage payment will be around $225 a month. I know i will be able to cover expenses every month but of course the bank wants some type of proof such as pay stubs which i don't have. I buy n sell items on ebay n the flea mkt which isnt a guaranteed income. Any ideas on how to bypass the credit history problem. Dont have good or bad credit, pretty much no credit. Any ideas would be appreciated.

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Kimberly Bar…, Agent, Annapolis, MD
Thu May 10, 2012
Kudos to you for your entrepreneurial spirit! You are one of the rare individuals who makes traditional lenders and creditors scratch their heads because you don’t fit into their “box.”

However, there are a few suggestions that may help you locate a lender who can see past the traditional W2 lending criteria. The lender would have to use “non-traditional” credit to build a credit profile for you. This takes a little effort both on your part and on the lender’s part. Some lenders are not willing to go the extra length because the lender’s underwriter still may kick it back, unapproved.

Try to think out of the box when it comes to pulling together a profile of your cash spending habits. Here are a few things you may wish to gather to see if these could be useful:
· Bank statements reflecting the deposits and expenses related to your online business
· Tax returns showing your yearly income, profit & loss statements from your business and tax payments
· Current rent payments to landlord
· Cell phone on home phone bills
· Utility bills
· And other non-traditional debts or obligations, such as storage unit, vendor stall fee at flea market, etc.

There are also several very active lending groups in Baltimore. There is a shortage of suitable housing for those you mentioned in your post. My suggestion is to pull together a tight written plan, with all supporting documents and make a pitch to a few micro lending agencies. Here are a few suggestions for you to contact:
· Rebuilding Baltimore http://www.bclending.org/
· Women Entrepreneurs of Baltimore http://www.webinc.org/
· Foundation for International Community Assistance http://www.finca.org
· Kiva Loans http://www.kiva.org
· Catholic Relief Services http://crs.org/microfinance/

Good luck!

Kimberly Barton
CRIS, AHWD, Certified Foreclosure & Short Sale Adviser,
Employer-Assisted Housing Specialist
Champion Realty, Inc.
711 Bestgate Road, Annapolis MD 21401
410-224-0645 (Direct)
1 vote
Mariano Simms, Agent, Owings Mills, MD
Thu May 10, 2012
You may want to consider asking a family member or a friend to co-sign for your mortgage, or you could just rent a house for now, rehabs and transitional housing some times may not be welcome in some neighborhoods, first you should check with the neighborhood association to see if they would allow such business.
Renting could be the best way for you, since it would allow you to relocate to a bigger house much easier once your business expand.
I have a few clients who may entertain renting for such purposes.
0 votes
June Piper-B…, Agent, Baltimore, MD
Thu May 10, 2012
There are a number of ways you can borrow. You can borrow using what is called hard money or private money. There are companies like Hard Money Bankers who loan money at high rates of interest, you may also want to check out Primary Residential Mortgage in Bel Air. You'll need to work with someone who is creative in the way they approach financing and be able to look at alternative sources of income. Good luck.
0 votes
Robert Mcgee, Agent, Baltimore, MD
Thu May 10, 2012
This is very hard. Two suggestions. If you are doing transitional housing and have relationships in the non-profit, governmental sector they may be able to suggest a funding source or grant program. The second idea would be rent to own. But this can be very sketchy. If you are willing to be "house mother" in a transitional setting, and have suitable experience, you should be able to find a sponsor amongst the various agencies. I always see them advertising for personnel. Maybe you need to beef up your work experience by doing it for a while and then finding money would be a lot easier.

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