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We are first time homebuyers that have just moved to Minnesota from California (where we would've never afforded a house). We have a complex situation that I fear may prevent us from getting a good loan, or perhaps one at all, so I wanted to see what you folks on the forum think.
I am employed, but my husband is self employed with irregular income that often comes in in cash payment so it is not verifiable on paper and varies a lot from month to month. Does that mean we need to do a no doc loan? If so, from what I've been reading on the 'net, it seems that companies don't like to do those anymore.
Together we probably make about 50K annually. We have no debt of any kind. We both have excellent credit scores, 812 and 820. We have good savings in the bank, about $120,000 and we plan to put down about 50K of that on a house. We are looking in the 200K or less loan range and a 30 year fixed.
So I guess what I am basically asking is are we a good risk, or are we going to have a hard time getting approved?
Thanks for your help,
Lisa

kpatrick · Posted: Mon Oct 20, 2008 7:19 pm Post subject:

Hi Lisa,

You should be fine, you just need to get with an experienced mortgage person to get pre-approved. With your scores, your ability to save, and your liquidity, you easily get the best of terms. The question is how much.

Why not get a referral from this forum. We have experienced folks from all over the country that can help you.

Kim

Guest

Thanks Kim. I am curious about the "no doc" part, too. Because my husband is self employed, do we have to use a no doc or low doc loan, and will that cost us significant rate points? And I take it from your answer that we probably will be able to get a loan for as much as 200K, even with the low joint annual income?

smithsussane · Posted: Mon Oct 20, 2008 7:45 pm Post subject:

Hi Lisa!

Welcome to forums!

No-doc loans or low-doc loans are best for people who do not have a steady income. Limited or no documentation mortgages are now available for people who have own businesses, make commissions, live off investments income or don't want to give up their financial privacy.

I don't think it will cost you rate points but it will better if you can consult the lender from whom you will be taking loans. With excellent credit score that you have and your good savings, I think you will not face much problem in getting loans.

Feel free to ask if you have further queries.

Sussane

Posted: Tue Oct 21, 2008 5:19 am Post subject:

Hi Lisa,

I forgot to address the part about the no doc loan...to my knowledge there are no lenders out there that are offering No Doc loans at any LTV or rate. Sussane, if you know of a lender that is still offering those, I would like to know the name, b/c I have plenty of customers who need one.

If you were to find it, in today's financial climate, the rates will be sky high.

The comments I made were based on the fact that you said your scores were in the 800's, you had documentable income, and $120k in the bank. That puts you in the top 1% of borrowers. So like I said, I feel you will have no problem getting a loan, but the question is for how much (meaning loan amount)...and here's the part I left out, and whether or not your husband will be able to claim any of his income and and/or be on the loan.

Hope this clarifies my answer.
Cheers,
Kim

Guest

Hi Kim and Sussane,
When you are referring to "no doc" are you saying the whole category may be unavailable, or something like a stated income loan might be? The problem is, my husband is typically paid in cash, and has no paperwork but his taxes to prove anything. If we go with just my income, aren't I going to get a terrible rate and a much lower loan amount? Is there a way to do full documentation from me and just his stated income to get both our assets in there for consideration? Thanks and sorry for beating the subject into the ground, we are just confused first time buyers.

jameshogg · Posted: Wed Oct 22, 2008 12:20 am Post subject:

Hi lisab!

No doc loans are not similar to stated income loans. In stated income loan, a borrower generally lies about his/her income and the lender does not verify the income. However a no-doc mortgages will require at least a credit report and a property appraisal.

If your credit score is good and you have a steady income, then you can also get a good mortgage. However, I don't think you will be able to qualify for a full-doc but stated income loan.

Thanks.

kpatrick · Posted: Wed Oct 22, 2008 8:24 pm Post subject:

Hi Lisa,

You nailed it in your initial question, and that is that you have a very "complex situation". And the best way to get your answers is to speak with an experienced loan officer that can take your information and decide the best option for you. Until you do that, it is all generalizations.

Feel free to ask for a referral from on of our community lenders and we will take good care of you. (I would put a link in there, if I knew how!)
Laughing

http://www.mortgagefit.com/quote/

Kim

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