How To Get Approved For A Home Loan With Low Income - YouTube

How to get approved for a home loan with low income? I get this question all of

the time. Are you ready to buy a home but you're not sure you make enough money to

qualify? Well, that can be really tricky and sometimes it can be a big obstacle

if you don't know what to do. But I'm here to show you and I'm going to

tell you exactly how you get it done. Let's go!

So, the mortgage loan application process can be very daunting for people.

When you go to apply for a mortgage, the first thing that they have you do is

complete an application. This application is called by us in the business a 1003,

which is basically the name of the form for Fannie Mae. And usually it's a four

to six-page application that asks you pretty much everything about the home

that you're buying, the interest rate, your employment, your name, your social

security, how old you are, how many dependents you have, what your

assets are and it lists out all of the debts that are showing on your credit

report, okay? And this process can be very daunting for people because it is a long

application is not like a quick one-pager. And so many people get really

tripped up in the mortgage application process but it does not have to be

daunting. The mortgage application process is really just finding out what

your current situation is and looking at if you qualify and if you are able to

repay that mortgage. Most lenders really just want to know, "Are you able to repay

the loan?" Because they have millions of dollars set aside for mortgage loans but

they want to make sure that mortgage is repaid because they make a ton of money

off mortgage loans. So, I'm going to tell you how you get through the process. The

first thing that you want to do before you ever apply for any mortgage is know

what your debt ratio is and know what your credit score is. So, the way that you

do this is you should pull your own credit. I literally give you a link in

the description box for a link for the my FICO, okay? This is a website that will

allow you to pull and check your credit so that you can see all of the debts

that are up there and you can see your credit score.

Additionally it gives you different models so that you can see different

credit scores because the credit score that mortgage lenders use is different

than the one that other people use, okay? So, like if you're applying for auto loan

that score is different and those lenders are different than mortgage

lenders. So, you want to be really specific and get the credit report in

the credit score that mortgage lenders are looking at. And so go ahead and pull

your credit go to MyFICO, I do not recommend... you know some of the other

sites I know you can get my annual port for free or you can go to Credit

Karma. I've worked in mortgages for over 15 years and I'm telling you there is a

difference between the credit report that they use. They literally have their

own credit report called a mortgage credit report. And that credit report is

different, okay? It's actually called a RM a residential mortgage credit report. And

so you want to make sure that you are looking at that correct report with that

correct FICO score modeling. The next thing once you pull the credit and you

see the score, go ahead and look at your debts. All of the debts that are on your

credit report are the debts that they are going to use on your mortgage credit

application. So, go ahead and add up the credit cards or the auto loans or the

other student loans or whatever is currently showing on your credit report

and add up the monthly payments and divide that by your income so that you

have your debt ratio, okay? Some companies call it your debt to income ratio or

your DTI. You need to know this and you can get

all of this just by pulling your own credit report. But if you are applying

for credit and we're talking about getting a home loan with low income.

You're going to run into a little bit of an obstacle that you wouldn't necessarily

have if you have a higher income. But if you have now looked through your debts

and you see okay you have $1,000 a month in debts and maybe you only make $1,500

per month gross, okay? That's another thing. Lenders will use your gross income,

alright? So, just give you a quick example when you're figuring out your

debt to income ratio. Make sure you know what your income is per month, your gross

monthly income. So, if you make $10 per hour and you work 40 hours per week,

that's $400 per week. You work... you know four weeks out of the month or 4.3 weeks

out of the month. If you make $400 per week multiply that by 52 weeks and then

divide by 12. And that will give you your gross monthly income then you divide

that number by the debts that you had on your credit report and you will have

your debt to income ratio. Now, that is how you come up with it and that's the

same thing that lenders are going to use. So, if you find that you don't have

enough income let me tell you a secret on how to get approved a different way. A

better way that I learned after failing in real estate

and losing my properties and going through foreclosure and ending up in my

parents basement to now being a millionaire that owns lots of properties

and makes tons of money in real estate. I figured out a better way and I'm going to

share that with you. You can just skip the mortgage process altogether guys. Yes,

you will probably get a mortgage eventually. But you do not really need to

focus that much on home loans and getting approved for a home loan if you

want to start making money in real estate and you want to start acquiring

properties. A faster better way that I'm going to teach you is to start to find

people that already have a property that already have a mortgage and they are

behind on that mortgage payment. Those people are losing their home to

foreclosure and in many cases you can help them avoid foreclosure by marketing

to them, catching up those payments and then taking over that mortgage. It's a

system that we call TOPS or taking over mortgage payments or taking over payment

system. There's all different types of names but it basically means that you

are purchasing the home subject-to, okay? You can either do a subject to where you

purchase the home and they leave that mortgage in place. The money that you put

down will catch the mortgage payment up. And then you can take over those

mortgage payments. That way you never had to have your credit checked, you never

had to have your credit pulled, no one is looking at your credit ratio, you just

need to make sure that you can afford to take over those mortgage payments, okay?

And that you can show the seller that you're able to do that. Or you can even

lease the property, again they're behind on the mortgage payment. You make those

payments that they're behind, you make that the security deposit to catch the

mortgage up. And then the mortgage payments are now your lease payment and

you did a lease to buy that property. So, there's tons of ways where you can start

getting property and you never have to have your credit pulled, you never have

to show anyone your income and you never have to go through that daunting

mortgage process. And this is probably a better way if you have low income or

income that you have that's not reporting or maybe you got paid in cash

or you didn't file your taxes and you wrote a bunch of things off. So, on paper

it doesn't look like you made a lot of money but you want to start getting some

properties. This is a faster better way to do it just target people that are

already in foreclosure or bankruptcy. If you want full training on this I've

created an entire free training. Please just go to noellesfreetraining.com to

get the full training on how to find people with property problems, how to

target them, what to say, how to find those people for free and how to put

deals together where you are making tons of money and you are acquiring

properties that are making you money and growing your wealth. Please go ahead also

and like this video, subscribe to my channel and I'll see you next time.

This is Noelle, to your success!