We have a really good credit score and want to buy another house or do an equity line on our current, but.....

Question

My husband started a new business (as a new home contractor) a little over a year ago, so it looks like we have not made very much as far as income for this year or last year. My husband does use money from the company to pay our bills, but the money is not considered income. Is there a mortagage company that can look at the fact that we have a really good credit score without considering our income situation?? We have also considered doing a equity loan....is there a place that will loan you 100% of the equity in your home without needing verification of income? or tax records?

Answer 1

You can check with a lender to see if they will accept 12 mos bank statements (they will look at all the deposits made during the 12 mos & average it out to a monthly income amount) instead of the traditional tax returns.

The big issue might be the 1 year being self-employed (as the new home contractor). Previous to being self-employed, was your husband already in this line of work/profession? Usually, even though he's been self-employed for 1 year... if he has at least 2 years in the same line of work/profession, that would be a compensating factor that the lender would take into consideration.

As far as equity loans, at 100% ltv (loan to value), it is difficult to find any lenders that will still lend that high. Most equity lines are usually around 90%... possibly 95% cltv (which is the combination of the 1st mortgage + 2nd mortgage divided by the home value. i.e. $150k 1st mtg + $40k 2nd = $190k divided by home value of $200k = 95% cltv).

You should first check to see if the company that has your 1st mortgage, will do an equity line for you. Since that lender already has all of your credit info - it makes a quicker, easier process. I also recommend using your credit union, which again is a little more lenient in their guidelines that conventional banks. But if you need a conventional lender, Chase Home Mortgage, might be one to call.

Either way you go, be sure that you fully understand the terms and read the documents to ensure that they say exactly what the loan officer told you (to avoid the bait and switch that some loan officers might do).

Good luck!

Answer 2

there are places that will lend it , only to people with excellent credit- which if you do have that -you are qualified.
The type of loan you are looking for is considered a no doc loan, just means they will lend you the money with no documentation about income or employment required. these are non conforming loans and you will get charged a higher interest rate. these loans are ofte used by self employed people - and are not that hard to get except the draw back is that even with good credit they may expect a down payment or cash up front. thats something that will depend on your exact situation and reason for the loan.
a couple things to keep in mind though- a equity line might be hurting you at this point with the real estate prices dropping.
if it is investment property or a second property in addittion to your first that you are looking to buy you might want to stick with getting a mortgage especially for that purpose, or maybe even just taking the equity loan for a short period of time and then refinancing the second home while the rates are still low.
im not sure where you live so i cant recommend anyone that i have experience with, but you might want to try countrywide- the work nationwide and are good at providing different options. No i dont work for them- just have had good experiences and recommended alot of clients who didnt have luck elsewhere and countrywide was able to help.
besides that just look through the local newspapers and home advertisements for mortgage companies that specialize is no doc loans, you also find lenders who advertise for investment loans - and you should call them also because alot of investors can not show income and investor loans are more tailored toward what you are looking for.

Answer 3

Your questions is not clear what you are wanting to do so, I'll try to give some direction. There is a big difference in buying another home (for investment purposes?) or just getting a line of credit. Of course there are loans called no income/no asset verification but you need a VERY good score for that and the rate is going to be ugly, so be prepared. Don't even think you are going to qualify for any government loans. Not! There are some places you can get 100% equity, but why would you want to do that? Don't you realize that it is one of the few reasons people foreclose? NO EQUITY!! Can't refinance!! Again, w/o knowing exactly what you are trying to do it is hard to advise. Perhaps you could add extra comments?

Answer 4

Credit score only means "history"; not "future". Lenders want to make sure you have the ability to pay back the money they loan to you plus interests. To prove it, you have to have enough stable income. In your case, you can't prove you have enough income. Therefore, you'll have hard time getting any kind of loan, equity or not, approved unless you are prepared to give your house up to the lender (i.e. foreclosure).
If you really need the money, either get another job or sell you house and move into a mobile home or rent a condo.

Answer 5

There is nobody out there that does 100% no income verification anymore. That went away about 4 months ago.

Chase allows you to use bank statements and we might be able to get you close to 100% but I'm telling you up front you're looking at a pretty bad rate... I'd be more than happy to anser more questions for you, but I'd need more information.

Answer 6

You want a 100% LTV without income documentation ?
While your income is declining because the housing price bubble popped ?
And you are in the popped bubble business ?
( new home contractor ? were you guys NOT paying attention to the news ever ?)

I think most those lenders are in bankruptcy ,
Do I know of any more trying to joing them ?
Not really . . .

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