Employment required to obtain a loan through a bank?


#1

Wondering if anyone has had success getting a loan from a bank without being employed? I was under the assumption that if you have 20-30-40% down, and the park was cashflow positive it wouldn’t be a problem. Any input is greatly appreciated!


#2

I think they will stall want to see some type of income and they will typically factor the parks income but they are also banking on you if its recourse. Do you have other income like real estate/dividends etc ? I would think that would work or maybe partner up with someone or see if a cosigner would work?


#3

Ya, I think that is what it may come down to. I’m having a rough time trying to get the owner to carry paper. I have the money to put a big portion down, its just that going through a bank is proving to be a pain. Do you know any other way around this??


#4

Not really unless you partner up with a money bag.

I have not had a job since the 70’s but have been able to get loans on properties over the years. It’s not that I am special but I was always asking for less then 50%. In my experience, banks want a heck of a lot more down on MHPs then 20%. I would too.


#5

The only problem with needing owner financing is that you might be trying to fit a square peg in a round hole. If you only have a chance to get seller financing 30% of the time, there is a good chance you wont get it , but you might.

Maybe put an ad on here (mhm forum) with some basic info , see if you get any interest in a partnership ( assuming you are open to it) or see if you might get a lender to look at it.

Im with @Randy_CA I don’t think you really will be able to without a partner


#6

Ya I agree. I’ve got someone that I have discussed this with that could match me and we could just pay it off… I was really hoping to leverage my money but I may have to go this route. I have been all over this thing over the last couple months because I have a lot of confidence that it is very far under market rent and needs to be metered. It will be a homerun if I can get it. Let me ask yall this since you are here… If me and a partner paid it off, increased the value, and put it up for sale offering to carry paper for someone else, do you think we would have success selling the note? We would have enough equity to both make some good money, even if we sold it at a little discount. Do either of yall have any experience in this method?? From what I have read, the note itself is a lot more versatile and easier to “manage”.


#7

Why not buy it fix it up, season the financials and refinance it ? OR buy it , fix, season, sell WITHOUT carrying paper. These are two different investments so just know what you are in and what you are not in.


#8

Just exploring all my options really. I would very much like to keep it and just run it correctly making good money, but I may opt to go the quickest cash out route… but the note idea springs from the current owners book keeping isn’t the greatest and I’m not sure if someone could get a bank loan quickly if we decided to sell it. On the other hand, if I/we carried paper for someone after our quick improvements, it could change hands quicker, and I could just sell the note.


#9

How many lenders did you talk to? I was able to get qualified without having a day job. I have great credit, a decent retirement savings, a lot of equity on my home and had a decent amount of cash. Perhaps they didn’t see me as being a risk.


#10

Well I’m just getting going honestly. The seller and I have been going back and forth for a while on the price, but we have finally got one figured out and it should be going under contract early this week.(I just submitted an offer for the agreed price yesterday.) So as far as banks go, I’ve only called one so far. It’s the only locally owned bank in town. I got shutdown quick with them even tho they are familiar with the property. I said I can increase the income and lower expenses and all that but was like it fell on deaf ears as soon as I said I’m not working at the moment. 816 credit score, enough for 40% down, and I have over 100k equity in my house. To be honest I was a little shocked but maybe that’s how they do things there i dunno.