Would you get approved to buy the home?
I m in college and wanted to buy a house, not to live in, but to rent out. I don t make much money, $13/hr part time, but I was wondering if i could get approved to buy a home for the intention of renting it out? I could put down about $15,000. I m just wondering if they would loan me more since it is not my intention to live in the house.
- Anonymous4 years ago
Of course they won't give you a loan. You haven't even graduated and you're asking for a HUGE sum of money. They have no idea how you intend on paying it back on 13$ an hour? Renting it out is a good way of making the money back right? WRONG. You will be knee dep in debt in no time , also you don't seem to realise how much money a landlord needs to invest in their tenants of which you most likely cannot afford. Leaving you with law suits (which you cannot afford) and a huge mortgage (of which you cannot afford) How do you think the guy that approves loans at the bank is gonna react when he knows all of this stuff about you?
- Anonymous4 years ago
FWIW, you plan to rent it out doesn't mean you can actually find tenants who pay on time. Thus the bank isn't going to want to count the future rent as part of your ability to pay.
Most people would have trouble paying their regular bills if they make only $2000 a month. You wouldn't have anything left over for the loan.
- chrisLv 64 years ago
They will loan you less and the interest rate will be higher since it is considered an investment property, and as a result is a most risky investment for them.
You will also need to show proof that you can afford it, have excellent credit, etc.
If you were planning on living in a portion of it, it may be easier.
- coraannLv 74 years ago
No. your income must be 3 times the amount of the monthly mortgage payment.
You must show 2 weeks of pay stubs to prove it.
Not planning on living in the property would be an immediate disqualification
of a mortgage.
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- JudyLv 74 years ago
Requirements are higher to get a loan for a house you're not going to live in. You probably wouldn't qualify even if you planned to live there.
- Ziff SpiffingtonLv 74 years ago
you are never getting a mortgage with only a part time job and being a student - and you need 25-30% cash to buy an investment property
- TexpersonLv 74 years ago
Your own earnings would have to be able to support the house payment in case a renter leaves or you don't have one all the time. No way you would qualify at this time.
- SlickterpLv 74 years ago
No way you get approved. No credit, not enough income.
- sunshine_melLv 74 years ago
Very little chance on that kind of income.