First off, I’m a complete beginner, I know next to nothing, and I’m expecting to be laughed at. Here’s my question: I’m currently living with my girlfriend. I’ve been looking for houses, and I’ve found a very nice quadplex that’s just been renovated.
I run two businesses, but personally have no source of income. Here’s why: In addition to my two existing businesses, I am working on creating a third, but they are under my girlfriend’s name for privacy reasons. Money isn’t an issue.
“‘It’s a popular college town with new renters coming and going every year. I have zero concern about finding tenants.’”
I would like to take advantage of us both using a Federal Housing Administration loan before we get married. I know that FHAs are applicable for up to a four-unit house, and I was wondering if it’s possible for me to get a loan to purchase this unit with no income.
The unit is $800,000, and each unit has two bedrooms in an area where the average rent is $1,000 per room. The estimated mortgage would be $5,000, and if I rent out each room at $1,000 a piece that shows a potential of $6,000 to $7,000 a month rent.
It’s a popular college town with new renters coming and going every year. I have zero concern about finding tenants.
Am I just dreaming or would the potential rental income be sufficient to make the purchase?
American Dreamer
‘The Big Move’ is a MarketWatch column looking at the ins and outs of real estate, from navigating the search for a new home to applying for a mortgage.
Do you have a question about buying or selling a home? Do you want to know where your next move should be? Email Aarthi Swaminathan at TheBigMove@marketwatch.com.
This week’s Big Move question was spotted on Reddit.
Dear American Dreamer,
Lending standards are pretty strict with conventional mortgages, so you may run into issues since you have nothing on paper to show your income. If your privacy reasons are related to taxes, your chickens may now be coming home to roost. If so, you may wish to consult the Tax Guy.
For an FHA mortgage, the lender would need to verify your employment for the most recent two full years. If you are self-employed, you will need to produce documentation to show how the business is doing financially, and so on. Either way, you will likely need to show sufficient evidence on your income or assets to qualify for a mortgage with your W-2s or 1099s, and other tax returns.
Even though you have a rough estimate of projected income from your rental properties, you are missing some other factors that come with…
Read More: I own a business under my girlfriend’s name. Can I buy an $800,000
