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I Need Help- Mortgage Experts

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stillirise
New Contributor

I Need Help- Mortgage Experts

I'm hoping someone here can help with innovative ideas. I have had 3 mortgages one insured and two conventional. Thus, I understand the usual criteria for obtaining mortgages. I need to refinance a higher interest mortgage with one in line with today's rates. Definitely will help with lowering the monthly payments.

 

My dilemma, my great paying job just closed my department and sent our jobs overseas. I know being employed full time is a major piece of the qualifying process.

 

However, the good news, I embarked on a seperate business venture and I've already earned more than I did all of 2014. In other words, even if I don't make another penny the rest of the year....I've made more than I made when I qualified for the 3 mortgages. I really hate losing that job I liked it a lot. However, it is not all gloom and doom. 

 

I did ok flipping houses with the mortgage loans. How do I qualify for mortgages now with out the full time job? The plan was to continue another year working then fly solo as an investor. I didnt expect the company to pull the rug out from under me so abruptly.

 

One thing to consider, I can prove all of my income to a mortgage lender. I just want to know if they are willing to accept that I've made my annual income for this year. Do I really have to have a daily fulltime job? If I gave up seeking investment mortgages for now....shouldn't I at least be able to just do a stream line on the insured loan?

 

Any ideas?

 

How can I do this? I have enough in the bank to pay all mortgages for a year or two if needed. I know one consideration before was the ability to pay all mortgages for 6 months in savings and/or assets. 

 

Thanks


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Message 1 of 10
9 REPLIES 9
StartingOver10
Moderator Emerita

Re: I Need Help- Mortgage Experts

Your assets are a big part of being able to refinance - and the LTV.

You will need to seek out a non-conforming loan because you don't have two years of tax returns to show to the lender for your new venture.

 

There are lenders that will make portfolio loans based on your credit and assets and a lower LTV.  Is the property you are looking to refinance a primary residence or an investment property? That makes a difference too. If you have excellent credit and show large assets, BMO Harris Bank for one of their portfolio loans. https://www.bmoharris.com/main/personal

 

Hopefully Shane or Dallas will pop in to answer your post with more detailed information.

 

 

Message 2 of 10
stillirise
New Contributor

Re: I Need Help- Mortgage Experts


@StartingOver10 wrote:

Your assets are a big part of being able to refinance - and the LTV.

You will need to seek out a non-conforming loan because you don't have two years of tax returns to show to the lender for your new venture.

 

There are lenders that will make portfolio loans based on your credit and assets and a lower LTV.  Is the property you are looking to refinance a primary residence or an investment property? That makes a difference too.

 

 


It is currently a second home. I intend to remodel and rent or sell it.


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Current Score: EQ 742 EX 752 TU 743
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Message 3 of 10
ShanetheMortgageMan
Super Contributor

Re: I Need Help- Mortgage Experts

Usually with a mortgage that won't require verification of income in the traditional sense, in addition to needing a decent amount of equity you'll need excellent credit and good reserves.  Often the bank you obtain the mortgage from will want you to have those reserves on deposit with them as well, for example a few banks here in the Los Angeles area will ignore income verification if you have minimum $250,000 on deposit with them, but each bank will have different guidelines (for those banks who offer such a program).

 

You said you "embarked on a seperate business venture" but didn't say exactly what it was.  Did you start up a corporation or partnership?  Are you a sole proprietor/filed a DBA?

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Message 4 of 10
stillirise
New Contributor

Re: I Need Help- Mortgage Experts


@ShanetheMortgageMan wrote:

Usually with a mortgage that won't require verification of income in the traditional sense, in addition to needing a decent amount of equity you'll need excellent credit and good reserves.  Often the bank you obtain the mortgage from will want you to have those reserves on deposit with them as well, for example a few banks here in the Los Angeles area will ignore income verification if you have minimum $250,000 on deposit with them, but each bank will have different guidelines (for those banks who offer such a program).

 

You said you "embarked on a seperate business venture" but didn't say exactly what it was.  Did you start up a corporation or partnership?  Are you a sole proprietor/filed a DBA?


I started investing in foreclosures and doing many of the repairs and marketing after work. I mentioned it up there...flipping houses. The lay off was the one thing I dreaded and here it is. My scores are not excellent but they are not bad. I have funds stashed away but I had hoped to use it for capital to make down payments. If I could find a way around the "job" requirement I could do very well and not need a mortgage in the near future.

 

I knew the banks required a job that's why I didnt quit...they had to practically push me out the door. What is confusing is the fact that I still have W2's for the previous years and paystubs to verify all income. This years income is already ahead of last year. Seems I should be able to use 2015's verified income to qualify. a job is never guaranteed but at this point we are no longer looking at the 'projected' income.

 

I welcome any advice...thanks

 

 


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Message 5 of 10
stillirise
New Contributor

Re: I Need Help- Mortgage Experts


@StartingOver10 wrote:

Your assets are a big part of being able to refinance - and the LTV.

You will need to seek out a non-conforming loan because you don't have two years of tax returns to show to the lender for your new venture.

 

There are lenders that will make portfolio loans based on your credit and assets and a lower LTV.  Is the property you are looking to refinance a primary residence or an investment property? That makes a difference too. If you have excellent credit and show large assets, BMO Harris Bank for one of their portfolio loans. https://www.bmoharris.com/main/personal

 

Hopefully Shane or Dallas will pop in to answer your post with more detailed information.

 

 


Odd..  I didnt see the rest of this post. Thanks starting over, I will check that link out tonight.


Starting Score: EQ 680 EX 731 TU 697
Current Score: EQ 742 EX 752 TU 743
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Message 6 of 10
StartingOver10
Moderator Emerita

Re: I Need Help- Mortgage Experts


@stillirise wrote:

@ShanetheMortgageMan wrote:

Usually with a mortgage that won't require verification of income in the traditional sense, in addition to needing a decent amount of equity you'll need excellent credit and good reserves.  Often the bank you obtain the mortgage from will want you to have those reserves on deposit with them as well, for example a few banks here in the Los Angeles area will ignore income verification if you have minimum $250,000 on deposit with them, but each bank will have different guidelines (for those banks who offer such a program).

 

You said you "embarked on a seperate business venture" but didn't say exactly what it was.  Did you start up a corporation or partnership?  Are you a sole proprietor/filed a DBA?


I started investing in foreclosures and doing many of the repairs and marketing after work. I mentioned it up there...flipping houses. The lay off was the one thing I dreaded and here it is. My scores are not excellent but they are not bad. I have funds stashed away but I had hoped to use it for capital to make down payments. If I could find a way around the "job" requirement I could do very well and not need a mortgage in the near future.

 

I knew the banks required a job that's why I didnt quit...they had to practically push me out the door. What is confusing is the fact that I still have W2's for the previous years and paystubs to verify all income. This years income is already ahead of last year. Seems I should be able to use 2015's verified income to qualify. a job is never guaranteed but at this point we are no longer looking at the 'projected' income.

 

I welcome any advice...thanks

 

 


So have you been doing this for several years (at least two)? Have you been reporting the income on your tax returns? Or have you been writing off much of the income from this source?  It makes a difference.

Message 7 of 10
stillirise
New Contributor

Re: I Need Help- Mortgage Experts


@StartingOver10 wrote:

@stillirise wrote:

@ShanetheMortgageMan wrote:

Usually with a mortgage that won't require verification of income in the traditional sense, in addition to needing a decent amount of equity you'll need excellent credit and good reserves.  Often the bank you obtain the mortgage from will want you to have those reserves on deposit with them as well, for example a few banks here in the Los Angeles area will ignore income verification if you have minimum $250,000 on deposit with them, but each bank will have different guidelines (for those banks who offer such a program).

 

You said you "embarked on a seperate business venture" but didn't say exactly what it was.  Did you start up a corporation or partnership?  Are you a sole proprietor/filed a DBA?


I started investing in foreclosures and doing many of the repairs and marketing after work. I mentioned it up there...flipping houses. The lay off was the one thing I dreaded and here it is. My scores are not excellent but they are not bad. I have funds stashed away but I had hoped to use it for capital to make down payments. If I could find a way around the "job" requirement I could do very well and not need a mortgage in the near future.

 

I knew the banks required a job that's why I didnt quit...they had to practically push me out the door. What is confusing is the fact that I still have W2's for the previous years and paystubs to verify all income. This years income is already ahead of last year. Seems I should be able to use 2015's verified income to qualify. a job is never guaranteed but at this point we are no longer looking at the 'projected' income.

 

I welcome any advice...thanks

 

 


So have you been doing this for several years (at least two)? Have you been reporting the income on your tax returns? Or have you been writing off much of the income from this source?  It makes a difference.


I have owned the properties for two years. Getting them ready for market was a slow process...I did much of the work myself after hours. The first profit did not come until this year. Just days before the lay offSmiley Happy


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Current Score: EQ 742 EX 752 TU 743
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Message 8 of 10
StartingOver10
Moderator Emerita

Re: I Need Help- Mortgage Experts

That is why some investors use alternate funding such as:

1) Bank statement loans

2) Hard money loans

3) Investment club type loans

 

All the loans above are geared toward short term financing (a/k/a fix and flip). Not long term rental holds.

 

I have also had buyers of mine use Self Directed IRA's for funding, but they had the cash in their IRA. This is a good vehicle for long term rental holds but you need to research it first.

 

Message 9 of 10
stillirise
New Contributor

Re: I Need Help- Mortgage Experts


@StartingOver10 wrote:

That is why some investors use alternate funding such as:

1) Bank statement loans

2) Hard money loans

3) Investment club type loans

 

All the loans above are geared toward short term financing (a/k/a fix and flip). Not long term rental holds.

 

I have also had buyers of mine use Self Directed IRA's for funding, but they had the cash in their IRA. This is a good vehicle for long term rental holds but you need to research it first.

 


I am not familiar with the bank statement loans.

 

Hard money I contacted even before the job loss. HARD is right. 70% LTV 20% interest upfront. Actually 15% interest with 5% in fees. The costs are so high it would be impossible to realize any profit.

 

I went with an investment club loan before their rates were slightly better than the hard money lenders but not much.

 

The self directed IRA sounds good. I sure would like to learn more about it.

 

Thanks for your ideas they are greatly appreciated. There are a lot of really good ideas in here.

 


Starting Score: EQ 680 EX 731 TU 697
Current Score: EQ 742 EX 752 TU 743
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Message 10 of 10
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