Posted by Patty on July 01, 2002 at 11:33:04:
Get your credit scores and find a good local Loan Officer.
Good Luck you guys will go FAR.
get financed at 20 years old? - Posted by markro32
Posted by markro32 on June 30, 2002 at 23:02:24:
My twin brother and I are 20 years old and a few years back began a painting business which is doing great and now want to investing into real estate. To begin, we were thinking of purchasing a cheap condo, around $50-60,000. We are both in college so our income fluctuates. I was wondering if it is possible to get a mortgage if we had a $10,000 down payment. The income between to two of us is on average $3000/month, it varies b/c we are in school and can not work as much during classes. I would appreciate everyones opinions on how to get financed.
Re: get financed at 20 years old? - Posted by Juan
Posted by Juan on July 02, 2002 at 08:56:44:
As a former mortgage broker, it is not impossible for you to get financed, you just need to know what to be ready for.
- Do you currently own your own home?
It’s a plus if you do. - Your painting business should be at least 2 years old
- The bank will look for your last 2 year taxes on the business and on you personally.
- You will probably need to put down somewhere between 15-25% down on an investment property. Before I left the mortgage biz, there were some very aggressive programs that were only requiring 5% down, but you had to have a strong credit score, above 680 or 700.
- A mortgage broker would be more inclined to know about these programs than your regular banks. Some small local banks have some very good programs and like to work with local investors.
Personally, I would not invest in a condo as my 1st investment, due to so many unknowns, i.e. increase in association dues, assessments, owning the property as an owner occupant prior to renting (sometimes for up to 2 years), the condo association approving your renter.
I would consider spending money on the education available here than in college. I owe $40K in student loans and have made much more in real estate than in what I majored in. If you have not already, consider joining your local REIA.
One quick lesson, something I have learned the past couple of years - It does not take money to make money! Use your mind to be creative, this is a great business!
If you have any questions about getting a mortgage, feel free to call me - 561-313-4563.
Best of luck,
Juan
Re: get financed at 20 years old? - Posted by GL(ON)
Posted by GL(ON) on July 01, 2002 at 14:47:36:
The big problem is that you do not have a job working for wages with a steady paycheck.
The fact that you make a lot more money on your own than you would working for someone else means nothing to a bank.
To use your business income, you will have to show them financial statements for 3 years and they will still put you in the commercial category, where it is much tougher to get a loan.
This is the type situation wher owner financing, sub2 etc. comes into its own.
Re: get financed at 20 years old? - Posted by Jay Compton
Posted by Jay Compton on July 01, 2002 at 12:47:24:
This is possible and a great idea for you. I bought my first home at 18 (ten years ago), and haven’t stopped buying since. It is a good idea, I feel, to deal with a smaller mortgage company on this, though. The major banks tend to shy away more from those of us with less age and experience. Have fun with the investing. I can assure you, do it right, and you can put the paint brush down.
Jay