Profile picture for thxbest

How to get home loan without income?

Hallo,

I want to buy a house in California. Price range between $40K - 70K. I can make a down payment about $35k - 40K. I don't need that much loan from bank or anywhere else. But I have no income right now and want to find a way to get a little amount loan to be able to buy a house. From the rent I want to pay the little loan.

For example:
Property price $60k
Down payment: $35 - 40K
Loan amount: $20 - 25K

What is the best way to get loan without and independent of income?

Thank you
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August 16 2012 - Victorville
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Replies (11)

Profile picture for B Mike West
The only way that I can think of is to get a loan from a relative.  No financial insititution is going to approve a loan for a borrower who has no income.  The way they look at it  is that if you can not demonstrate an ability to pay them back they are not going to consider you for a loan.
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August 16 2012
Profile picture for thxbest
Thank you for fast response. I own a house with value of about $70 and I bought it cash, no morgage, no loan.
Is there any chance? because I want to rent out the house.


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August 16 2012
Why don't you pay cash for a $40,000 property, problem solved!
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August 17 2012
A seller who has substantial equity in the home may be willing to finance your purchase. Example: You buy a house for $70k that the seller owns outright. You make a $35k downpayment (and pay your own closing costs). You sign a promissory note to pay the remaining $35k at x% interest (the seller might find 4% attractive), amortized over 30 years, but with a "balloon" payment in 10 years. The seller records a first mortgage/deed of trust so that if you fail to pay, he or she can foreclose. With such a large down payment, the seller is taking very little risk, and if you should happen not to pay, he or she can easily cover the cost of the foreclosure and what is due on the note from your substantial down payment. Find a buyer agent who will work with you to find a seller willing to finance your purchase. You would need a real estate attorney to prepare all the documents. Note that I am not recommending a "contract for deed" (sometimes called a "bond for deed" or a "land contract" or an "installment sale"), because those arrangements offer buyers less protection than a mortgage/deed of trust. This is not legal advice -- you need an experienced, local real estate attorney to provide you that.  Please post a reply to let me know if this was helpful.
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August 17 2012
Profile picture for thxbest
Thank you for your advice. It is very helpful but I think it's very hard to find a seller who is willing to finance my purchase. I really don't know if a seller is going to do that in that price range. Because I think in that price range we are talking about it's very hard to find a good property in good conditions with a seller who is willing to finance the purchase because there are a lot of investors out there who pay that price cash, so the seller doesn't need to get the risk with financing by buyer. Do I have a good chance to get a good property with financing by seller despite Investors who pay cash?
What do you think?
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August 17 2012
Yes, I think you have a good chance of finding a seller who is willing to "take back" the financing. If the seller has no mortgage, and sells to someone who is paying all cash (or who is getting a mortgage, which works out the same for the seller because the seller still gets all cash), what will the seller do with the money? Put it in a savings account earning nothing?  Put it in a certificate of deposit earning 1% or 2%? You can offer 4%. That's a good return these days. Find a buyer agent who is willing to work with you.  If your price point ($70k) is low for your market, a successful real estate agent may not be interested, but there always are new agents who are anxious for their first clients. Walk into a local real estate brokerage office and tell them you're interested in buying a low-priced property and you are willing to work with a newly-licensed agent. A new agent who doesn't have any or many clients has the time and energy to work aggressively for you. The managing broker of the office can provide guidance to the agent, and the agent can gain valuable experience on your purchase that will help him or her with future clients at higher prices. Win-win-win. After you have bought and owned the house for a couple of years, with a history of steady rent payments from your tenant, a local bank should be willing to refinance your loan, and even cash out your equity up to 75% of the then-value of the house. Then you can use that cash as your down payment on another investment property, using the same buyer agent if he or she did a good job for you. Be optimistic! 
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August 17 2012
Here is a property that you could probably pay cash for.

http://www.coldwellbanker.com/property/ren/CA/92395/59001180#.UC7O4KJavyY.email

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August 17 2012
Profile picture for thxbest
I think mobile / manufactured homes are not good as an investment because their value do not increase over the years and they lose their value, on the other hand you have to pay the land / foundation fee month to month. Is that information right?

Thanks
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August 18 2012
Unfortunately, is very hard to find a $40,000 property in California, even harder in a move-in condition. If you own a free and clear $70,000 home, I would suggest to buy another one nearby to where the first is. Or you can buy in another state where the prices are lower than California (pretty much all the other States). 

If you must buy in California then Counties like San Bernardino and Riverside Counties have properties around $70,000. Keep in mind that these will not be the top neighborhoods in the West Coast.

On top on everything else, lenders don't like to work with mortgages of less than $50,000. You may find a lender but it will charge you extra points for the small loan if they decide to fund your loan.




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August 20 2012
Google Hard Money Lenders.
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August 20 2012
Good Luck finding a $20,000 mortgage let alone a mortgage with no income.
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August 22 2012
 
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