20 Years Old, no job record, saved $50K, and want to buy a house soon

yeah good luck with that.

p.s. don't pick up the soap.

Try a No Doc loan, or a Niva loan. (No Income, Verified Assets)
If you can put 20% down, you'll be in good shape. The banks like seasoned money, so if it is cold hard cash, you might want to park it somewhere..
If you haven't paid taxes, once you own property, the IRS may redflag you, and you may get audited, just a word of warning.. You might get a tax lien slapped on
there! There are plenty of lenders out there, and you could always get a hard money loan. You should check out alot of lenders and see who will give you the best deal. Beware of the bait & switch dudes, they'll quote you a low rate, then when you get to closing, you'll get raped, and risk losing your earnest money if you walk!

he has a job hussling eBay and CL. let him be on that. people can make alot.

But yeah, you need to have a real business license, pay taxes, etc. The IRS isn't too keen on folks with no documented income (at irs) buying houses, unless you want to be audited or visited by the DEA.

So you have a business, you are an employee of your business. Nuff said. I would goto creditboards.com and build up business credit (doesn't show on your CR) after you get the house and use that for your business if necessary.

With a good 700+ score you can get a decent no doc loan for sure. Just follow the rules. There's alot of people in the mortgage forum on creditboards that are brokers, who can help you (and they can even handle your home purchase). Those guys are motivated work-at-home brokers who make alot of their money off net-business since the overhead is pretty low. They are lean , which means they won't waste your time or theirs if things are not going to go down.

Check out DCU credit union too, they are local here in atlanta, and it seems every broker quotes their rates.

What happens is you pay the broker some fees and they make sure all your ducks are lined up so they get paid when the loan closes. IMO this small fee (well not small, sometimes alot) is worth it. Because my last closing was hand over the required docs, house inspection, wait 2 weeks no word, go to closing sign docs, get keys. no surprises nada, actually almost scared me they didn't say a peep until we arrived at the lawyers office to sign the docs. You'd think they'd email you like every day saying "it's still 100% and 3 days to go" lol. BTW they did do IRS W-2 verification, took my PDF bank statements, and never called my work to verify income lol.

creditboards mortgage forum, golden for advice. If you are in atlanta i can give you a guy thats done several mortgages for alot of my close friends. He's probably not the cheapest but he's never screwed over anyone, and word of mouth referal is good stuff. I also know a good inspection company, dude tore up my new house finding little little things i'd have never considered.

My pointer is that it is not safe to leave $30K in cash laying around the house - I would invest some in a too large to carry High Quality safe that is fire proof.


notanormalgent said: Hey guys, I'm in a little bit of a dilemma here. I'm currently 20 years old and I've been saving my money for a very long time. I've never had a "formal" job, and I've never paid taxes. I have about $8k in my bank account, $7k in the stock market, and about another $30k in cash. I've been very successful with an eBay business and craigslist hustling, but I seriously don't know what to do. I'm worried that if I put the money in my bank account it'll look fishy considering I've never had a job on paper. I don't want the government thinking I'm a drug dealer or something! I'm also hoping to buy a house within the next year, but I don't know how I'm going to do that, yet. Can someone please give me some pointers?

you do realize that eBay and paypal can give your info to the irs and address match. it could be 10 years from now and you'd be liable for state and federal taxes and penalties and interest.

think about where our nation is going with data aggregation..

Why don't you get a job and file amended tax returns for the past few years. If you do it "right" you might not owe any taxes.

How do you expect to make the house payments if you don't have a job? You can't count on eBay and Craigslist month to month can you?

mespin said: Your overarching problem is that you have no verifiable income.
His overarching problem is that he is going to prison for not paying taxes.

Phase 1: Stop admitting that you don't pay taxes in a public forum on the internet.

Phase 2: ???

Phase 3: Profit!

Here's a few questions that you need to answer first:

1. Where do you live?
2. At what time are you typically out of the house?

CoffeeEater said: Here's a few questions that you need to answer first:

1. Where do you live?
2. At what time are you typically out of the house?

Beat me to it.... I was gonna go with more of a:

"I'm a tax attorney, I can help you get that taken care of for pennies on the dollar PM me your phone number/email and addy and I'll send you out some stuff to look over and then give you a call in a week."

Why are you guys scaring the poor kid.

Listen... YOU DO HAVE A JOB!!!

You are a sole proprieter running your own home business. Get a business card or two and route your business transactions through there. Pick up a copy of H&R taxcut,file taxes and pay em along with the penalties(Or see an accountant). It shouldnt be too bad as you can write off most of your busines expenses. Also, you can set up a retirement plan for yourself (much larger allowable deduction than a typical 401k) in order to get some of that income deferred.

Get a copy of Quicken Home & Business and start tracking ALL your income and expenses and keep your receipts. Open a Business Checking & Savings account if you want and get a TIN number.
Remember that the more legit you look, the more willing the banks will be willing to work with you.

Then go get your house. Heck you may even be able to get it under your business name if its an investment property.

Then come back to FW and report your good news!!!

Good Luck.

Fortune Favors The Bold.

notanormalgent said: I'd like to thank those for the positive constructive feedback, and for those that have nothing good to say, please stop posting.

I'm a student in college right now working towards my business degree. I just got my real estate license as well. I have paid taxes before on my stock gains, but I never knew that I had to report eBay stuff? I guess I'll do a backlog and send Uncle Sam a nice big check...
Once you get that tax situation settled, you can finally put your money in a bank. I sure hope the cash is at least in a safety deposit box.

mespin said: Once you get that tax situation settled, you can finally put your money in a bank. I sure hope the cash is at least in a safety deposit box.Definitely get that cash in a savings account ASAP. Keeping it in bill form is costing you $600+ a year.