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I am trying to move out to colorado and buy a house out there. However I am pretty sure I am unable to get a mortgage on my own, although I have not tried. I have really good credit, around 735 with no negatives against me. However I only have about 10k of verifiable income. I do own a house in iowa that is assessed at 48k but worth a little more due to many renovations and is paid off. Paying a mortgage would not be a problem as I also have renters lined up to bring in 700 a month at my current house and would have an additional 300 in rent in the house in colorado, although I don’t think that helps much in getting a loan now. The houses I’m looking at are in the 50-75k range and I could have up to 20k to put down. I am working on getting a cosigner by offering him a cash incentive but want to have a backup plan if that doesn’t work. Does anyone have any ideas on how I could make this happen? Rent to own type thing, house at collateral, etc? Any suggestions will be greatly appreciated as I’m just getting into buying real estate. Thanks in advance!

2 Thoughts on How to buy a house with great credit but little income.?
  1. Reply
    February 10, 2014 at 5:47 am

    Why would you put yourself in such a situation even if you could get a loan?

    Go to Colorado and find a job. Once you have the regular income rent for a year and then if you still want to buy look for a house. Sometimes we just need time to plan and get all of our ducks in a row.

  2. Reply
    February 10, 2014 at 6:06 am

    Mmmm… It all seems a bit risky. With very good credit and very little to put down I’d say try an FHA loan (3.5% down). If anything that’s going to be your best bet. But with little income there might not be anyway at all. Unless you are willing to sell your current home and put more of a downpayment down? Then maybe that might be considered. Having two properties kinda puts a big mark against you when mortgage shopping.
    I’d say meet with a lender and talk about an FHA loan. Go in with the attitude of “I’m trying to figure out what I need to get where I want to go”. And if for some chance things end up in your favor it’s a great surprise. If not at least you’ll know how far you are from your goal. Good luck!

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