There is a program called "Good Neighbor Program" which provides all kinds of homeownership assistance to teachers, firefighters, paramedics and policemen. There are all kinds of programs out there, so please do some research and find out what is available. You may have to provide a little more documentation than others, but the era of "no-doc loans" is over. Everyone should be prepared to provide two months' worth (and sometimes three months' worth) of original bank statements, along with two years of tax returns, and the two most recent paycheck stubs (showing year-to-date income). Also you will be required to provide a signed document which allows the lender to contact your bank directly to verify the amount in your accounts as well as allows the lender to contact the IRS to get its own copies of your tax returns. This was required in the past but was rarely used because the lender was just too busy. However, now the emphasis is on stopping fraud -- and the lender will verify for itself that you have the funds you say you have and that your tax returns (and W-2 forms) haven't been altered. The lender will also verify your employment and will require you to provide proof of rental payments (or mortgage payments if you're buying a second home). That's why you should pay your rent via check at least 12 months before you buy or at least have copies of all your checks. These days there's no getting around these documentation requirements. Finally, if you are thinking on fudging on any of these figures: DON'T. The FBI has stepped up its efforts to combat mortgage fraud, and while it is concentrating primarily on mortgage fraud by professionals (loan officers working in concert with realtors and appraisors), they are also indicting people who lied on their loan applications about their income, their debt or even if they were going to be living in the home they were buying -- and they are indicting people for this because it's very easy to prove. Most of these people end up in a plea bargain. (And the next step in this entire process will be income tax evasion -- expect to see these criminal prosecutions within the next 6 months -- that is, kickbacks, etc., that weren't reported as income.)
Message Edited by Alternative on 07-02-2008 08:10 PM
