Profile picture for dkavaichan

getting a home equity mortgage as a 21 year old recent college grad?

Hello all, I have a question concerning my chances of getting a mortgage in Omaha, Nebraska.

I am 21 and recently just got out of college. I own a home, a small one worth maybe 120k bought outright from the part time job / small tech biz I have in the last few years that is used as my investment property leased out. I have never had a real job, but my credit score is in the mid 700 range for all this time I had my own card for the last 3 years.

Here's my question:
1) I am not planning to get myself employed anytime soon, one of my startups has been expanding rather quickly and the income I had been getting is approaching 6 figures. Am I going to have to go with no-documented loans which I had been reading is just not happening right now?

2) I have my current house that I would like to get some money, any money, out for a 2nd investment property. It is appraised at 180k and to be honest I want to get just a fraction out (20%-40% is something I'd settle for, anything more is fantastic.) What ways of financing can I go thru if I want to pick up a 2nd property using a HELOC? Also, are they going to look at appraised values much?

sidenote: I can provide lease agreements to indicate that I'd structure my mortgage to cashflow neutral to positive.

3) I plan on being an active real estate investor at the moment (the buy and hold type, as I plan to have the rental income to support me down the road when I am done with being entrepreneur). Is it hard for self employed/ small business owners to get loans these days? I read a bit about it and it seems mortgages favored the employed rather the employers, what ways are there I can work on to start building some loan capacity?

Many thanks!
-Kav
  • January 14 2010 - Omaha
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Answers (1)

Good for you Kav!

#3. Last two years Fed Tax Returns showing enough income to qualify at 45% DTI. You may be able to use Form 1084 Cash Flow Analysis to bring several filed deductions back into your qualifying income. ... Best wishes, Rudi
  • January 15 2010
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