bad credit, not able to prove income

Guest 0.10 Dollars($)

MY SCORE IS NOT VERY GOOD AT THE MOMENT AND I WILL NOT BE ABLE TO PROVE INCOME BUT WHAT IS POSIBLE IS THAT I GET W2 & PAY STUBS FROM MY DADS BUSINESS. I HAD A PHONE CONVRSATION WITH ONE BROKER AND HE SAYS THAT RIGHT NOW EASY MORTGAGES AREN'T AVAILABLE AND I NEED TO HAVE FICO SCORE OF OVER 700 ATLEAST TO GET ANYTHIN PLUS HIGH INCOME TO GET A 100 PECENT LOAN. WHAT I HAVE FOUND IS A HOUSE WITH ASKING PRICE OF $370K BUT THE SELLER IS WILLING TO GO FOR AS MUCH AS $340K WHAT SEEMD TO ME LIKE A DECENT DEAL. I NEED SOME ADVICE ABOUT A MORTGAGE FOR GETTING THIS HOUSE

blue · Posted: Wed Jul 11, 2007 3:54 pm Post subject:

Hi Roelof,

Welcome to Mortgagefit discussion board.

The broker has not given you correct information. You need not have a 700 score to qualify for 100% financing. But I am concerned about the way you want to show your income.

You are telling that you will be using W2's and pay stubs from your father's business? You have thought what would happen if you produce these pay stubs to the lender and he pulls tax return by using 4506? The whole thing you have in mind is going to be considered as a loan fraud and you will most likely be prosecuted for that. It is better to drop this idea. You cannot prove your income via your tax returns?

Thanks
Blue

miller_st · Joined: 17 Jan 2007 Posts: 917 168.82 Dollars($)

I need to ask you a few things Roelof. What kind of credit problems you have and why your score has gone down? Will you be able to prove your income & what kind of work you do, for how many years now?

You should forget about using paystubs from your dads business, as it will be a fraud and your dad will also get involved in it. You won't want that.

For subprime loans on a full doc a lender would like you to have a middle score of 620 while if you go stated income then at least need to have 660.

Miller

larry · Joined: 27 Jun 2007 Posts: 3245 460.30 Dollars($)

Hi Roelof,

When you cannot document your income, you can go for No Doc loan as it requires no employment, income, or assets to be stated on your loan application. With this type of loan, the lenders allow 5% down payment depending on your credit profile.
Another option is No Income No Asset loan. Here the lender verifies your employment, but no income or assets are on the application. This small bit of documentation will generally save you 125% on the interest rate.

Caron

Hi Roelof,

Welcome to the forums.

If you think it's a decent deal, then you can go for it. But considering your dad's income and documenting it to qualify for the loan do not seem to be a good idea, if at all you're taking out the loan in your name. Now, in this situation, what you can do is, either take a no doc loan or else choose a No income no asset (NINA) loan.

Such loans do not require any documentation of your income and are not provided by all lenders though. You can refer to previous discussions on No Income No asset loans to know more about these mortgages.

Good luck Smile

diane · Joined: 12 Jul 2007 Posts: 4 2.19 Dollars($)

Their are possible options out there for you. As stated by others no income no asset first time home buyers programs, etc. I would be happy to help you find a loan.

Guest 0.10 Dollars($)

siva or nina loans are going to cost you more as they have higher rates than for conforming loans.

what kind of business do you have and why you own't be able to document your income? another question is that why your score is low? are there lates, charge offs on your report? if they exists are they recent?

how much your income is presently? you are looking at a costly house, you sure you have the income to afford it?

it may seem like I am only asking questions, but to give a correct answer these things are imprtant.

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