Mortgage Loans

[concorduser]

I am self employed software engineer / consultant. I make decent money, but I am self employed. 

I am thinking buying a Town House around Dec / Jan.

House cost would be between 200-250k.

I am thinking of going for No Doc or Low Doc Mortgage.

How difficult to get it? How much lead time do I need to get the mortgage approved?

How much down payment would they require? I can go upto 30-40% for downpayment.

Any suggestion as to where I should go for the loan and what kind of rates I could get?

As of 10/7/2007 my scores TU 666 / Eq 642 / Ex 667. I am cleaning up my reports now and hoping my scores would at least 700+ by the time I am ready to apply for the loan.

Thanks in advance for your advice.

[rk2]

i will suggets call chase or your bank amd ask them if they off rural development loan which is backed by the fedral,there is not much involved with credit scores.good luck

[ilovepizza]

I didn't know there were no docs one out there. That would be nice. I did find out that some lenders inflate this fee so always ask every lender how much that fee will be. I always get the answer, don't worry not much. I hate that answer and question them again, how much is not much! Not much can be more than you think.

[Timothy]

I am not a mortgage expert-

More documentation=Lower rate and fees

Just because the IRS thinks you broke even the last 2 years does not mean you don't have documented income.

[Lady_Scarlet]

You need alternative financing (which does not mean that you are sub-prime, just that the paperwork is a problem)

Wells Fargo is still doing alternative (what you want is stated income/stated asset - not a true 'no doc' from them) WF's will take the last 6 months of bank statements for proof of income.  Higher rate but make the payemnts on time for a year and they will convert it.  They require anywhere from 5%+ for a downpayment on that program.  Their rate was reasonable the last time I checked that particular program.

As a Realtor (and technically self-employed) I am very familar with going stated income and Banks that work with a lot of self-emplyed people know the ins and outs and the whys - Because you deduct MOST of your life on your taxes, any equipment purchase is a deduction ( have top-notch compters, printers, cameras, GPS, etc - all deducted on taxes which makes my 'income' much lower).  Car is deductible (ever wonder why Realtors always drive expensive cars - that's why). Vacation is combined with conferences - so that is deducted too!  I figure that 1/3 of my 'income' goes to Uncle Sam and his cousins( I set aside that third and always have extra when I do my quarterlys), 1/3 to business expenses (controllable to an extent), and 1/3 to me - as an example, if  I'm taking down $300K in commissions, then that 100K that is 'mine' should be the money that I budget for personal things like my home, clothing, etc. It works and I don't end up scrambling to pay the tax man.

Message Edited by Lady_Scarlet on 10-08-2007 12:13 PM

[concorduser]

I am glad you understand. Do you have any contact at WFB whom I can talk to? As a Realtor where do you practise? I am looking for one propery in NJ and possibly another in SC or NC. Any suggestions?

[Lady_Scarlet]

check your messages!

[concorduser]

Sorry, I did not get any message from you. Could you please send it to me again. Thanks...

[Lady_Scarlet]

PM sent again... PM me when you get it, please

[ShanetheMortgageMan]

If you can get your scores up to a 700 like you are planning and have 25 percent down, Freddie Mac (purchaser of mortgages, but doesn't directly make loans to individuals) has a stated income/stated asset documentation type, where only verification of your self-employment is required.  The rates for that program are the same as if you are qualfying with full documentation as well.  Wells Fargo offers Freddie Mac products, as do plenty of other lenders and brokers.