Can I get a mortgage for an investment property without any income?

[Scott_B]

I have about 33% to put down towards a multi-family home where i would rent out all of the units. The investment should be able to pay all PITI expenses and still produce over $500/month extra. I have a co-signer who makes a considerable income, but i am currently on unemployment. do i stand a chance at getting a mortgage??

[Chris_C]

Odds are VERY slim that you would get this mortgage I would assume under normal circumstances.  From a bankers perspective there is no gaurantee that the vacancy rate of the place will stay low.  IF there are vacancies and that's your only source of income, then it comprimises your ability to pay back the mortgage.  this is how banks would normally veiw a situation like this.

Given the current credit crunch it's safe to say it would be even more difficult.

Having the co-signer with considerable income would be your own saving grace.  Odds are they would put that person as the primary borrower and you as the secondary person.

[AllCourt]

Unlikely that you will get a mortgage from a conventional bank unless the co-signor has sufficient income and good enough credit score and debt-to-income ratio.  In my experience, banks won't consider rental income unless you can show a valid lease and history of rental receipts.

However, if there is sufficient equity in the property, a hard money lender or private lender will loan the money.  It will cost more in upfront points and be at a higher interest rate which will eat up the cash flow, but if the investment is good, it is worth it to do that type of loan, IF you think you'll be able to refinance at a better rate after a year or so based on the rental income or rental income + strength of co-signor's income.

Good luck!