Buying a house with no income?

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I am a student and have $ 5,000 for a down payment on a FHA Rehab loan that I want to take in on an investment property.I can’t qualify because I don’t have traditional income, I am a full-time during the school year and work as a temp during the summer. Someone suggested a hard money loan, but when I checked into it some lenders said that they need experienced investors and at least 50% up front. I really want this property and frankly could make a lot of money on it, so I know I can pay off the mortgage. My co-signers aren’t to much more established than I am. Any ideas other than forget about it, I’m looking for ways to purchase the property.

7 Comments
  1. Reply
    Common Sense
    May 4, 2011 at 12:39 am

    Who in their right mind would loan you money with no income? How would you repay the loan, magic?

  2. Reply
    Sensei Ono
    May 4, 2011 at 1:13 am

    Do you have your renters already lined up? You can site their lease agreements as promissory notes (future income) and leverage those for increased loans etc.

  3. Reply
    Caveat Emptor
    May 4, 2011 at 1:19 am

    What you seek is not at all realistic. Without regular and verifiable income, you will not get a loan. The last thing anyone in your situation should be fooling around with is buying an “investment property.” Concentrate on your education.

  4. Reply
    Karen
    May 4, 2011 at 1:31 am

    You can’t afford it with cosigners, you don’t need to end up in bankruptcy. Drop that idea like a hot potato. Period. You don’t even have any idea about taxes, things break and you have to pay for fixing/replacing them, etc. Quit dreaming and finish college. You’ll have enough debt from that already.

  5. Reply
    RetiredDebtFree
    May 4, 2011 at 2:08 am

    You are headed for a financial disaster, or worse, dragging someone else into it. If experienced investors who know the cost to rehab the house haven’t scooped it up then it probably needs more work than you realize. Hang onto your money, and keep adding to your savings, stay out of debt, invest in your education and look at passing on this idea a blessing in disguise.

  6. Reply
    idiotsgetinfree
    May 4, 2011 at 2:52 am

    Welcome to the real world, honey. Want in one hand and $ &!t in the other and see which one fills up the fastest.

    Seriously, if we were all bankrolled, we could ALL go out and make boatloads of *more* money. duhhuhh… that’s the name of the game… MONEY MAKES MONEY. Get a job.

  7. Reply
    Judy
    May 4, 2011 at 2:59 am

    Sorry, not going to happen. There will be other properties in a few years when you DO get established. A lender isn’t going to lend money to someone who can’t show how they’ll pay it back.

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