Someone told me that I wouldnt need proof of income or credit check because I am putting 50% down. Is this accurate?
2006-12-16 14:20:51 · 4 answers · asked by Warren 1 in Business & Finance ➔ Renting & Real Estate
No, this is NOT true. The bank will require proof that you have income. Half down is great but the bank still needs proof that you can pay back the rest of the money.
2006-12-16 14:27:34 · answer #1 · answered by GRUMPY 7 · 0⤊ 0⤋
Let me help: First of all, there are loan programs from places like countrywide that are what they call "quick & easy" if you have 20% and a 680(that may not be exact) credit score, you can get a loan at a pretty decent rate. Don't worry about the loan, you can get it. Here is where I want to help you out...why are you going to put 50% down? Lets say, for example you are buying a $200k house and you want to put $100k down...you now have ALL of your cash and equity in ONE piece of property. Would you do that with a stock, or a mutual fund? Probably not. On the other hand, you could put down the required 20%, in our example $40k, and you now have $60k left. You could take that $60k and instead of buying more equity in your house, you could build more equity in your house by adding a bedroom or study or remodeling the baths and kitchen (my favorite). Then instead of owning $100,000 of a $200,000 house and having no cash left. You now own $160,000 of a $230,000 house and you STILL have $30k left. What do you do with that? You can buy TWO rental properties! If you put 10% down on each you can buy two $150k houses. Now rental properties that actually put positive cashflow into your pockect every month aren't easy to find, but not too hard either. And it sounds like you don't have a job, so what the hell else are you gonna do? If you want some more advice feel free to email me, I'm not a realtor or a salesman, I'm a real estate investor and I love helping people get out of the rat race...alqprop@gmail.com
Oh yeah...read the books on the amazon links below...you will understand things alot better after you do....Good Luck!
2006-12-16 16:23:57 · answer #2 · answered by turbiville 1 · 0⤊ 0⤋
When I purchased my house there was something called a stated income loan. It's where they don't need your last two paycheck stubs because you tell them how much you make, however, they do complete a credit check to make sure that you are a good risk. The best thing is to talk to a knowledgeable loan consultant to see what you best options are.
2006-12-16 15:31:31 · answer #3 · answered by NICOLE B 1 · 0⤊ 0⤋
The only way you won't need to verify employment is if you own your own business.
2006-12-16 15:16:31 · answer #4 · answered by brinkmont 5 · 0⤊ 0⤋