Question about NO DOCS home loan.

[waiter]

Hello ,

I wanted to ask if it would be possible for me to get a mortgage without Income verification.( self employed )

I have never owned a home.

Been renting apartment in NY ,same apartment for 11 years , never late on rent. ( Can get letter from landlord about rent payment history 11 years $1400 a month )

Want to move to Florida, Kissimmee area. Home would be arounf 200k to 215k max.

I do have a down payment 30% to 40% for 215k loan.

Credit: thick file.  about 585k available credit. total overall balance around 1200. so 0% utilization.

Credit score: Mostgage score on this site from experian is 724.

but other fico scores are experian 812, equifax 818, TU 789.

I will also be looking for Business in florida e.g. Gas station business.

Perhaps i should buy business first while i rent, and after 6 months of buying business i should hunt for home loan???

But if possible I would like to buy business and home at the same time.

Thank you all for help.

[GirlMelanie89]

Wow!! You have quite an impressive file. I'm not 100% sure how self employment income verification works but my LO said that they require 2 years of proof of income in order to make an informed decision about approval. This was brought up because I told him that I was looking to get another job, while preparing for a home. He said it wouldn't be a problem, as long as I wasn't living on incentive pay only or self employment.  Hopefully someone else with personal experience can chime in.

[iv]

Want a No-Doc loan? Get a time machine, set it for -10 years.

But I'm not seeing why you need no-doc?  (I'm assuming that you are actually paying your taxes.)

Tax transcripts will provide all the verification you need. (With a 2-year average)

Only issue could be if you are writing off so much that it reduces your apparent income too low for the loan.

[waiter]

Only issue could be if you are writing off so much that it reduces your apparent income too low for the loan.

Yes this could be a big problem.

I think i should be looking for house for rent than house for sale

[Anonymous]

Just as a side note I believe any fractional amount of utilization gets rounded up to 1% no matter how miniscule...not that it really matters.

[Imperfectfuture]

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@waiter wrote:

Only issue could be if you are writing off so much that it reduces your apparent income too low for the loan.

Yes this could be a big problem.

I think i should be looking for house for rent than house for sale

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Yep, first year in business, USDA will count first year business, so when file taxes, income will be higher.  Not taking as many write offs as I could.  Did my research first.

[leahkline86]

Impressive credit file!! The only way you will be able to get qualified is with two years of tax returns averaged out. If you do not have these, work on this for the next two years and then you will be able to qualify!

[ezdriver]

I recommend that you call around your local banks and credit unions seeink a portfolio loan. With a significant down payment and credit scores like yours, a protfolio product makes sense as the underwriting criteria will be determined by the lender vs the investors to whom most loans are sold.

[pipeguy]

Couple of recent articles that should be helpful.

http://www.marketwatch.com/story/an-old-fear-returns-as-new-mortgage-market-players-rise-2016-02-29

http://www.marketwatch.com/story/big-banks-are-fleeing-the-mortgage-market-2016-02-12