No income documentation, big down payment, options ?

Guest 0.10 Dollars($)

Hi,

I live in Dallas and I am looking to buy a property for my primary residence in the $500-600K range. I can't really document my income, but I am willing to put down as much as 50% ($250-300K).
I want to keep a low monthly payment, I don't like to have a lot of debt and I have no better use for this cash right now.
I manage/trade an investment portfolio for a living, so my income varies greatly from month to month.
I have about 1.2 million in liquidable assets, zero debt and a 780 credit score.

What are the mortage options I am looking at : rate, type of loan (30 year fixed, ARM, interest only), etc...?
What would be best suited for my situation ?

There are so many options and variables that sometimes I feel like my head is going to explode...
Thanks in advance for sharing your knowledge

larry · Joined: 27 Jun 2007 Posts: 2598 349.39 Dollars($)

Hi,

Welcome to the forum.

Your credit score and income seems good but you should shop a bit for lenders to get best option.

If you want the property for longer period of time then you can choose 30 year FRM. But if you want to move out from this property after two or five years or you don't have good income and expect a raise in your income in near future then ARM is a good option for you.

BTW you can get No-obligation free consultation from the community lenders by just filing the form at http://www.mortgagefit.com/

Feel free to ask if you have any farther questions.

Best of luck,
Larry

Jessica

Hi Jfin,

It's good that you don't have a lot of debt. Most lenders offering no doc loans prefer 25% down payment and if you put down 50% then that's too good. It may help you in getting a lower rate comparatively than what can usually get on a no doc loan.

Your credit score is also well above 700 so that will work in your favor. You do have a good amount of assets, so everything seems ok. Now, if your income is variable, I suggest you go for a fixed rate loan, if not 30 year then a 15 year loan. However, you need to check by how much your income varies and depending upon that you can go for an ARM too provided you don’t wish to stay long in this property.

By the way, are you self-employed? You'll have to show bank statements, tax returns for the past 2 years and profit and loss statements if you're self-employed. You should be able to list your assets and debts. That's because the lender would like to calculate your debt to income ratio. But, would you be able to document your assets, if not income?

Regards,

Jessica.

Guest 0.10 Dollars($)

Hi Jessica,

Thank you for your answer.

I can document my assets and show my bank statements and W2 for the past 2 years, but my W2 doesn't show much income as I had a lot of gains that were offsetted by deductions and older losses.

I plan to stay in the property for probably 5 to 10 years.

So how much more should I expect to pay compared to a fully documented mortgage ?

Guest 0.10 Dollars($)

This will depend more upon the mortgage rate you get, the charges you pay for the loan and the down payment you put in. The lender/broker making the offer will calculate it for you. If he doesn't request him to show you the calculations of the monthly payments.

atulagarwal · Posted: Tue Apr 01, 2008 10:30 am Post subject: rates offered

Normally No Doc loans are hurting now because of the underlying market conditions, However with the info you have provided I can say its should be no problem to get a rate around 6.25%

Guest 0.10 Dollars($)

Thank you for your answer Atul.

atulagarwal · Posted: Tue Apr 01, 2008 11:35 am Post subject:

My Pleasure!!!

chrisburns · Posted: Tue Apr 01, 2008 3:29 pm Post subject:

Does bank of America have a no doc program I was not aware of?

To my knowledge there is no such thing as a no income verification loan.

If you are self employed you could get a stated income loan.

Being w-2 and having to go stated creates a challenge. World Savings is one of the only lenders I know of still doing this and from what I heard they will be eliminating that program this month. If you hurry you may be able to get your loan in with them before it's cut off.

They have the 30 year pick a pay loan. I believe they require 20% down for owner occupied stated loans. It could be 25% so don't quote me on that. I'd have to call my AE and find out.

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