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Found a house I love... now i need SIVA

Posted on: 11th May, 2008 08:12 pm
I am looking to purchase a home in Ventura County in S. Cal. I have approx 75K saved up and just stumbled accross a house that I fell in love with. I now really want to find a way to make it work. The home is bank owned and appraises for about $550K (according to the agent). The asking price is 525,000. I did some research and the funny thing is that the the sales history shows that the home sold in March for 360K... and it is now a REO. I am assuming that the 360K is the amount of the loan balance? Not sure how that works. Anyways, I would like to know how realistic it would be for me to qualify for a loan on this place. The problem is that I have not filed for my 2007 taxes because I am still waiting on a 1099 from one of my accounts. I am self employed and own a successful business and earn about 120K a year. Are there any loans out there that could work for me? My credit is good... a 700 score with no negatives in the last 5 years. There is some wierd Verizon collection for $800 from 5 years ago, and I am not sure what that is as I have never not paid a phone bill. I have tried to dispute it, with no luck.
Can anyone give me some insight? I know loans are very difficult to get nowdays. I really love this house, and would love to find a way to make it work. I have done the math and have very little debt, so I know feel confident being able to afford the mortgage payments, taxes, etc.
Thank you.
p.s. this area is considered a declining market
Hi Guest,

Welcome to the forum.

IF you know the market in Ventura County is declining then why are you going to buy a property here now? But the decision is totally up to you whether you want to go for it or not.

As far as your credit is concerned, it seems very good. So you can request for no-obligation free mortgage quote from the community lenders. They offer variety of loan programs. You just need to give minimum details so that the lenders can check it out.

Hope some one will surely help you out.

Best of luck,
Larry
Posted on: 11th May, 2008 11:24 pm
Posted on: 12th May, 2008 04:30 am
Hi eveyone. Thanks for all of your answers.
To answer the question regarding the declining market.... Ventura County as a whole has been lableled a declining market... but this REO is rare... on a huge lot and has had custom additions. Exactly what I have been looking for and the very first house I have seen in my price range that I really like. My idea is, get preapproved and then go in with a lowball offer and see what happens. I am in no way paying $525 for that house. I will offer $450 and go from there.

Can anyone reccomend a good lender for my situation? Are there any who do not use/require a 4506T?
Thanks
Posted on: 12th May, 2008 08:04 am
Hello Guest.

I feel Larry has rightly suggested you to request for the no-obligation free mortgage quote from the community lenders. There are number of lender in this community. So someone out of them will surely help you out.

4506T is very important so that the lender can verify your tax information and income to qualify for the mortgage. So I feel lenders require 4506-T to approve for the mortgage.
Posted on: 13th May, 2008 03:16 am
siva and nina loans are quite rare in this market and this year. sisa (stated income/stated asset) loans are still available, though. declining markets will generally reduce your borrowing ability relative to the property value, but with your asset base, it would seem not to be a bother in your case. i'm not familiar with the particulars of ventura county, ca; but there are locales throughout the country where lenders simply won't even grant loans. i'm quite certain, though, that entire counties are not at risk.

as for the $360K mortgage balance (if that's what it is), i don't imagine that will have any impact on your bidding on the home, nor on your ability to obtain a loan. i also agree that you're wise to under-bid rather than offer full asking price.

you might find a lender who won't require a 4506T, but i think they are few and far between these days also. nevertheless, i think your credentials are good, which would indicate a likelihood of approval if you find the right product to fit your needs.
Posted on: 15th May, 2008 06:51 am
Hello there Guest,

First I say that if you're planning to stay in the home for a considerable amount of time, the declining market status should be low on the concern list because real estate goes through high & low cycles. It sounds like you plan on stayin in the house and make it your own. Second, being self-employed doesn't necessarily mean you need a stated income loan. depening on your AGI (adjusted gross income) on your previous tax returns, you might be able to qualify for a full documentation loan. (you should review this info with your loan officer to find the best possible solution). If you do need a SIVA or SISA loan, my experience has been that the lender/bank will require you to sign the 4506. The next question is, why are you concerned in signing that form? That raises red flags for the lender and even your loan officer. You should be able to be open and cadid with your loan officer in order to find you the best possible solution.

Best of Luck

. :)
Posted on: 19th May, 2008 08:00 am
hello there! what's the 4506 form?
Posted on: 20th May, 2008 05:50 am
Welcome johannes,

The 4506 form is mainly used for mortgage loan. Lenders use it to verify the borrower's tax information to determine his income. Through this 4506 the lenders can stop the fraudulent mortgage loan.

Let me know if you have any further queries.
Posted on: 20th May, 2008 06:05 am
a 4506 or 4506T is a request for the borrowers tax transcripts. It doesn't necessarily mean the lender will request them but it's there for their protection should there be any issues that arise. it can also be used during a quality control inspection. there is a percentage of loans that go through inspection to make sure everything with the company, lenders, and borrowers are on the up&up.
Posted on: 20th May, 2008 10:05 am
a 4506 is not only used to verify income. Actually the true purpose in a loan approval is to verify that you

A. You do in fact file self employed
B. You do in fact file your tax returns

On most stated loans the underwriter will look at salary.com to verify the reasonableness of your income that you have stated on your application.
Posted on: 20th May, 2008 10:05 am
if anyone wants to know what a 4506 looks like, along with the instructions on completion, all that is needed to do is to review it on www.irs.gov. that might eliminate some of the confusion that exists among lay people.
Posted on: 20th May, 2008 11:03 am
Hello Guest,

You can absolutely qualify for SIVA. With your down payment and credit score it is no problem. Although many lenders do not do this any more, brokers do have access to the lenders that do offer it and at attractive rates as well.
Posted on: 23rd May, 2008 08:58 pm
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