[Chadillac2000]

I'm currently 22 years old, graduating from college here in the spring and wanting to pick up a property to either resell after some enhancing or lease out to pay my mortgage on the place. Could probably take the place for 150k or something (hypothetically), what would be the best way for me to go about getting a loan of that amount without a high income job? Do the banks or private lenders take into account what my intents with the property when giving out the loan? Any tips guys? Want to be ready to buy something by this summer.

[EMAXX]

I'm assuming that you have a job currently, right?

Were you planning on down paying anything?

Do you currently already have a house that you're paying a mortgage on?

[Ninja K]

Doubtful, but best of luck.

You need around 20%+ downpayment of the property value to even make the banks blink and eye...over here at least. USA might be different.

[Double_J]

It'll probably fall under a standard mortgage scenario and subject to the same considerations (debt to income levels, downpayment amount, etc.) if you don't currently own your own place. The bank doesn't really have to know what your plans are but it's not unusual for them to require a co-signer for someone at your years of experience, etc. unless you've been able to build up a flawless credit history or provide a significant down-payment to keep the loan well under the house value, etc.

The fact that it's an investment property would actually make it harder to get a loan vs. getting one for a primary residence since you'll have less 'at stake' in the property in the bank's eyes. Also, the tax treatment for investment properties is different, so make sure you do some research before jumping into things.

BTW - don't do this unless you have the capacity to hold the house for a couple of years at least. This real estate market isn't coming back anytime soon, and the days of quickly flipping a house for profit are over because there are so many alternatives within a given price bracket nowadays.

[drunk hal]

sick bump

[newnewman2002]

Originally Posted by Ninja K

Doubtful, but best of luck.

You need around 20%+ downpayment of the property value to even make the banks blink and eye...over here at least. USA might be different.

He is going to need more than 20% down if he has a low income. Also getting a loan for a rental property is going to be even more difficult. I am guessing since you are 22 years old, you don't have much of a job history/credit score either. Save up your money, set aside 30-45% of the down payment for the property that you are looking at. Keep at least 6-12 months worth of mortgage payments in your savings in case you lose tenants.

Also go for a property that has multiple sections that can be rented out to a HUD renter. People always have this misconception that a property in a lower end neighborhood with poorer tenants is a bad thing. In fact it is just the opposite. You want government supported tenants. They are long term renters, always make their payments, and they treat the properties well because they do not want to lose their support from the government.

Also keep in mind that you will need savings for all of the hidden cost of home ownership(especially old home ownership) leaky pipes, mowing equipment, paint, windows, etc. Everything needs to be up to a certain spec if you are renting it out. At your age, I think it is a lot of responsibility. I would stick to easier investments with less risk and invlovement, but that's just my opinion.