Best way to purchase a home with no verifiable income

Keyfoster · Joined: 24 Jan 2008 Posts: 1 1.59 Dollars($)

What is the best way to buy property with no verifiable income?

I want to buy a condo. I am currently renting the condo for $1400/m. I sublease 2 bedrooms to long-term, well-paying, tenants/roomates, one for $600, the other for $550 (I live practically free of charge). Technically, I do not make enough money to purchase the home through any mort. program. I'm a new graduate, I work as a temp making about $27k/yr. However, the rental rates in my area for a bedroom are ample to pay the mort., granted the rooms are rented, which they are.

Problem is, I cannot get a loan with a decent rate. I have about $1000 to put down, and my fico is <680. I was wondering if anyone knew of any creative financing techniques to thwart this problem. I've been contemplating asking my landlord (owner) if he could possibly quit claim the condo to me, as he is highly motivated to sell the property. Then I can refinance, and pay him his sale amount. Or, since the condo is paid off, just pay him an agreed amount overtime, until rates are better.

Any ideas?

My community loans allow for boarder income.......not all of it in your case it can't exeed a % of your income....but it is a way to get a mortgage.

larry · Joined: 27 Jun 2007 Posts: 3328 473.51 Dollars($)

Hi Keyfoster,

Welcome to the forum.

I don't think if your landlord quitclaims the property that will be a great deal. It may help you but that will not be helpful for the landlord. So I don't think he will even agree for that.

But you can ask him for owner financing. Owner financing is the most appropriate solution for your situation - at least I think so.

If you want to know more about owner financing please check this article http://www.mortgagefit.com/owner-financing.html

Hope this will help you Smile

Feel free to ask if you have any further questions.

Best of luck,
Larry

blue · Posted: Thu Jan 24, 2008 2:30 pm Post subject:

Hi,

Welcome to Mortgagefit discussion board.

Owner financing or seller financing is an excellent option for you. Here the owner will provide you a part or whole of the purchase price for you and you will pay him on a monthly basis. So if you can’t get approved for a mortgage you can consult with your landlord for it.

You can even think about Lease-purchase Mortgage Loan. This is also an alternative mortgage plan low income borrowers. Check this article to know more about it - http://www.mortgagefit.com/lease-purchase.html

Actually it is better to know what are the options available for you so that you can act accordingly

Do let me know if you have any other questions.

Thanks
Blue

lisascherzer · Joined: 04 Jan 2008 Posts: 755 1.03 Dollars($)

I agree that quit claiming the property to you can be pretty risky for both parties. What if it doesnt appraise for enough, etc. There are some options that would allow you to use border income it may be enough to get you into this condo.

gmakerley · Posted: Fri Jan 25, 2008 9:21 am Post subject:

i would offer that you are not likely to find many lenders willing to take a flyer. you didnt indicate the approximate value of the condo in question, but with $1000 for down payment, your scenario isnt very inviting.

think about this...you have unverifiable income and little down payment money...what will be the motivation for a lender to offer you the best rates? truly, there isnt much there for a lender to go on.

there still exists an alternative universe for cases such as yours - it used to be called sub-prime, but that is such a dirty word now. whoever you may be dealing with now can likely find a deal for you somewhere, but it will be at a higher rate, due to your lack of qualifications for the best rates.

jeffselan · Posted: Tue Feb 05, 2008 4:46 am Post subject: Also.

In my opinion, the best thing you have going for you is your good credit score. There are so many bad aspects to your loan scenario, but that can be a good thing, for you.

I ask you to think in a different way. Banks are in the business to loan money and not take a loss. If there is no bank that will pick you up, it should tell you that you have little chance of being able to pay the note.

In other words, through their own self protection, they are protecting you!

Best of luck to you, get a couple years under your belt and look at it again.

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