Hi. I am trying to buy a house. Right now I am currently renting an apartment and I am tired of paying rent. Now I found a house in NJ around where I live for only $54,900 Its a condo 1 bedroom with living room and dinning room. Now I don't care how big it is. I am just tired of paying rent and want to own a house. I currently make $30,000 a year and I am willing to put $6000 to $10000 down payment for that house. Now about my income I get paid cash and check. The cash money I cant prove because its like tips.
My question is Is there any mortgage company that will deal with someone in my situation that get paid 75% of his salary cash?
2007-12-24 15:36:14 · 5 answers · asked by unknown11233 1 in Business & Finance ➔ Renting & Real Estate
If you can't prove your income, the bank or mortgage company will want some kind of "insurance" to cover the risk they'd be taking by giving you a loan.
Usually they will insist that you put down 20% to 25% towards the purchase price of the house ($55k x .20 = $11k; $55k x .25 = $13.75k), and/or pay a higher rate of interest on your mortgage. That way they'll get their money right off the top in case you default on any future payments.
With what's currently going on in the housing market the other thing you MUST have is a very good credit rating.
Your best bet is to find a mortgage broker. They work to find the best deal for you among all the current rates being offered at a variety of banks & mortgage companies. If they can't find something to work with your credit rating, downpayment & interest rate they don't get paid. They'll also let you know if you need to save a bit more money first, build-up your credit rating or need to take a loan at a higher interest rate right now, then re-finance it in a few years once you've built equity in the house & your credit rating has improved.
2007-12-24 16:00:28 · answer #1 · answered by Anonymous · 0⤊ 0⤋
You will need to put down between 12-15k for that type of loan and unless you report your cash income your debt to income ratio may disqualify you from getting a loan.
2007-12-25 00:38:10 · answer #2 · answered by Bob D 6 · 0⤊ 0⤋
If you're properly claiming your tips it should be reflected in your pay stub. If you're not, and not paying the taxes on them, welcome to yet another downside of being a tax cheat.
If you are self-employed you'll need to provide proof of income, usually in the form of the past 2 or 3 years tax returns. As long as you are claiming your income properly and paying the taxes on it, you should be fine. Again, if you're not claiming the income, see the last line in my first paragraph above.
2007-12-25 00:28:35 · answer #3 · answered by Bostonian In MO 7 · 1⤊ 0⤋
They have a "no verification loan" for self employed people...the only catch is you have to put 25% down....or maybe you could find a private lender, but they usually want a higher rate.
2007-12-24 15:41:33 · answer #4 · answered by Anonymous · 0⤊ 0⤋
if you are getting 1099'd and you file income tax with this income you will have will be able to go through NACA. With NACA you will not can use your down payment to buy down your interest rate to as low as 0.125%. You need to check this out... go to www.naca.com to see more information about it on there website.
2007-12-24 15:52:59 · answer #5 · answered by cmickeygirl 2 · 0⤊ 0⤋