OfflineHello everyone,
I'm a college student looking to purchase a multi family in New Haven, CT because I go to Quinnipiac University. I have a job, but no one want to lend to a 21 year old with no credit history. Also my mother who I live with is in the NACA program which prevents me from buying anything in my name. Is there anyone that has advice on how I would go about buying a multi unit not in my name and advice on financing or even banks that would lend to me? I'd be so grateful. Thanks and God bless,
Carima
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"In the search for me, I discovered truth. In the search for truth, I discovered love. In the search for love, I discovered God. And in God, I have found everything".
First, I fail to see how your mother's participation in NACA would affect your personal ability to get a loan - unless she needed to cosign with you.
Second, you will need a credit rating of at least 580 to qualify for a loan. You will also need to have steady income. A debt to income ratio of a maximum of 33% which includes any student loans.
Third, lenders are going to demand a down payment. Typically they want to see 20%. There are some programs that allow less - like FHA - but you will want to read the fine print. If your multi-family is larger than 4 units, the bank will most likely demand that you have a reserve fund to cover management and that you hire a property manager until you have the necessary experience to self manage it.
If you do not presently meet these conditions, then my advice is to first work on these and then invest in a property.
Thank you for your response. Its a two family and I'm trying to find either private money or get the owner to finance it.
"In the search for me, I discovered truth. In the search for truth, I discovered love. In the search for love, I discovered God. And in God, I have found everything".
I think with your situation the seller financing option would be great. You can also look into a lease option as well. With a lease option you usually do not need as much money up front and you can negotiate a time table you have to get qualified to buy the property. I have seen and even done lease options with a 5 year term, which should give you plenty of time to get qualified for a loan.
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What coach said above are very good ideas, regarding seller finance or lease option. I always try to do seller finance when I purchase. I use lease options to sell. No need to ever use a bank if you don't have to.
If you truly can't take title to a property in your own name, create an LLC and buy it with that entity. The LLC is owned by you, but it is basically a totally separate person.
You may still need a down payment, but you can find someone to put up the cash for you and pay them a rate of return or give them a small equity position in the property.
Good luck,
Jim