Can I get a home loan for renter’s income being unemployed?
Posted in Renting & Real Estate on 10/04/2009 01:09 pm by admin
Chris asked:
Due to the down economy I was laid off from my job. This is happening everywhere but I was wondering if I could still get a second mortgage as a type of “rental income”. I currently own a home, well still have a mortgage. But are lenders still willing to give out loans to people who are unemployed but yet looking to make a second source of income from rent. Or could I pull out a line of equity on my current home? Please give me some advice
Due to the down economy I was laid off from my job. This is happening everywhere but I was wondering if I could still get a second mortgage as a type of “rental income”. I currently own a home, well still have a mortgage. But are lenders still willing to give out loans to people who are unemployed but yet looking to make a second source of income from rent. Or could I pull out a line of equity on my current home? Please give me some advice
(reason I ask: Found a steal on a home appraised at $99,000- selling for $30,000)
ORLANDO
10/07/2009 at 11:07 pm
LEVI
No lender is going to offer a mortgage to an unemployed person. Your have to be able to service the mortgage if the rental income isn’t sufficient. Lenders will only allow a percentage of the rent to be used towards qualifying for the mortgage.
Laws now prevent non employment mortgages like this, as well as no down payment mortgages.
One last thing: if the house is selling for $30,000, it is (by definition) only WORTH $30,000. What a previous appraisal rated it at is irrelevant, the market has collapsed or the house is a foreclosure that has been trashed.
10/09/2009 at 4:50 am
DELBERT
I’m confused about what you’re asking. You’re wondering if you could get a second mortgage as a type of rental income? Or do you want the second mortgage to buy that house so you can rent it?
Well, the only thing I can tell you is how we would handle that. In order to use your rental income you have to have at least 2 years history of successfully owning and managing rental property.
If you’re buying you’re first rental property, we’re unlikely to give you any money for it.
10/09/2009 at 10:37 pm
PEDRO
you have NO SHOT at this. You cannot get any loan with out income. This great investment property has no equity at all even if $60,000 under fair market value for at least 1 year as there is no seasoning on the home what so ever.
Still NO SHOT
I am a mortgage banker in TN