I basically, want to buy a house in order to avoid paying for rent while going back to school. Then after I finish school I will sell the house. I will put 60% down, and have 3 years worth of mortgage payments/insurance/utilities/living expenses saved up.
2007-07-14 15:33:39 · 6 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
Limited-documentation and no-doc loans once were used primarily by self-employed professionals, small-business owners and individuals who are heavily dependent on periodic bonuses or commissions.
In limited- or no-documentation programs, applicants typically state their income and assets to the loan officer but aren’t required to show detailed proof of that information for the mortgage company’s files.
Generally, applicants are required to have good credit histories, but at the extreme — NINAs (no income verification, no asset verification) — they need not document much of anything when qualifying for a mortgage. The allure of such mortgages for lenders or brokers: They come with higher rates and compensation.
No Documentation Mortgage Loans
One type of No Doc Loan is the "NINA" loan, where no income or asset information is provided or verified. If you can verify liquid assets, I would suggest you apply for a Stated Income Verified Assets loan or a No Ratio Loan which offer better rates.
The NINA loan approval is based on down payment, credit history, and property value. This program still requires "employment" documentation of your past 2 years, while others do not. No Doc, "NINA" , loans may go to 100% loan to value or 10% down/equity depending on credit scores. The standard credit scores needed are above 660.
No Income No Asset Programs: (NINA)
(Homes, 2 to 4 Units*, Condo High Rises, Jumbo Loans)
95% to $1,00,000
90% to $1,300,000
No Income, No Asset, No Employment: ( No Doc ) These loans have No Verification of Employment, Income, or Assets Loans and are available on 6 mo adjustable, 2, 3, 5, & 7 year fixed ARM's. A 15 & 30 year fixed rate is also available. For No Doc 100% financing, you'll need credit scores above 680 although some programs go as low as 660.
95% up to $1,000,000
90% from $1,000,000 to $1,300,000
The above program requires a minimum of 5%-10% down or equity when job is not verified up to $1 mil outside of CA.
New 90% No Doc up to $1,000,000 SFR Primary Residence ( 720 credit score for 90%, 680+ for 90%)
New - 90% No Doc with Assets up to $750,000; Assets verified with no verification on you job or income.
Program Highlights
3 year, 5 year, 7 year & 10 year interest only payment option on 3, 5, 7, & 10 yr Fixed Adjustable Rate Mortgages. (credit scores over 660) ; 1 month adjustable & 1 yr fixed ARM/s now available too.
Talk with a broker, a broker underwrites for many company's so they only have to pull credit 1 time, and they (lenders) look at that credit report. . A single lender (not a broker) has programs available, but they may not be able to help you and your situation, so you go elsewhere, and than that person pulls your credit (see what I mean.) If you shop, your credit is pulled and that is considered a soft pull, for a 30 day period. Just like shopping for a auto, it is good for 30 days. If you apply for a credit card, that is considered a "hard" pull and it drags down your credit score. When looking for a home &/or refinancing, please do not apply for a credit card, Department Charge Card, Gasoline Card or make any major purchases, like a auto, etc. This will pull your credit down.
By the way, a loan application is called a 1003, and they will issue you a GFE (Good Faith estimate, with-in 3 days, that is per the RESPA laws, and the TIL (Truth in Lending). The GFE will tell you the up-front closing cost associated with your loan. The TIL will tell you the terms, rate associated with your loan. This is a estimate only - not the final - but it does help you figure things out
2007-07-14 18:43:02 · answer #1 · answered by W. E 5 · 0⤊ 0⤋
Yes. If you go through a mortgage broker they have loans for "no income verification" it looks as though you are pretty well off, at least for the first years and with the downpayment. The downpayment amount will be a huge benefit when it comes to getting a loan. Mortgage brokers often have higher rates, but with that size of payment I would think you'd get a great rate! I have never heard of a bank giving a mortgage without a job, but you could look into that too! Good Luck!
2007-07-14 22:40:16 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Yes, ask for a no income verification loan. You must put at least 25% down and may pay a higher interest rate. Shouldn't be a problem. Call a mortgage banker or broker. They will love you!!
2007-07-14 22:38:14 · answer #3 · answered by cptviggi 2 · 1⤊ 0⤋
Sure, you are an excellent risk. If you default on the loan, the bank gets to take your house and sell it again, keeping your 60+%. They'd make big bucks. However, I am sure you would sell it before that would happen.
2007-07-14 22:44:14 · answer #4 · answered by mamaross 2 · 0⤊ 1⤋
You can get a no doc loan they don't even ask about a job.
2007-07-14 22:38:07 · answer #5 · answered by shipwreck 7 · 1⤊ 0⤋
How much can you really save? I hope you have done the math. Source of income is really important to lenders.
2007-07-14 22:39:27 · answer #6 · answered by Raul21 5 · 0⤊ 3⤋