DCU, Penfed or Lightstream for 700+ fico NO PROOF OF INCOME

[Superduper2014]

Hello guys, 

I am trying to help my girl friend buy a used car with a loan.

She recently moved to miami and does not have a job yet (long story), but has great credit 700+ ficos, a Penfed account (closed her credit card with them due to annual fee) and suntrust checking account (for lightstream)

Situation is she needs to buy a used car in the 15k range in order to get a job down there and I am assuming lenders will need proof of income. I cannot be a co signer. 

Since she has a good FICO and under 20% util on cards, etc  I was wondering"

1) Which lender to apply to in order to get the best rate for the longest term (make pymt smaller)

2) Which lender will most likely not require Proof of income 

3) Do these loans allow for paying principal only if you want to pay more each month?

4) Will these lenders (lightstream) for example require Comprehensive and collision and will put a lien on the car?

5) I see that you can choose a dealer used car option through lightstream and it is cheaper than buying from individual owner, but since it appears that they will just deposit the money to your account, what difference does it make if you choose dealer and then find a private owner deal and want to go that route? 

Thank you guys for any insight. I really need to solve this today. THanks again. !!

[K-in-Boston]

PenFed's rates are great, but they will almost certainly ask for POI to be uploaded.  (They asked me on a refi even though I had about $9000 in equity on it!) That likely goes for most credit unions.  Dealer-initiated financing may be a different story.  Additional payments with PenFed at least do go toward the principal.

Most reputable lenders will require comprehensive and collision coverage, often with a $500 deductible, and they will be listed as the lien holder on the title as that is how they secure the loan.  Otherwise they are just giving you an unsecured loan.

[Superduper2014]

Thank you K in boston, 

What about Lightstream. I know their rates are higher, but it may be the only option if they don't require POI. 

Also, I might be mistaken, but I thought I read somewhere that there is a chance that Penfed or DCU won't require POI at times. I might be totally incorrect. 

I remember talking to suntrust for a HELOC a few months ago and they said that they don't require proof of income if it was less than 25k or something like that. Maybe a HELOC would be in order if the rates from Lightstream are going to be similar or higher than the heloc rate?

Thoughts? Thanks a lot

[Superduper2014]

UPDATE:

She received this email. (haven't been able to talk to them yet.. long waiting times)

Thank you for choosing Pentagon Federal Credit Union for your financial needs, and congratulations on the approval of your vehicle loan!

• Your pre-approval draft for your new or used vehicle is being mailed to you according to your instructions.

This message serves as a reminder that you elected our online disbursal method, and as a result, your documents will be available for you on PenFed Online to review and electronically sign.

• You will receive an e-mail message prompting you and your co-borrower (if applicable) to review and electronically sign your documents after your pre-approval draft has been negotiated and your loan is active.

If you have any questions regarding your loan or pre-approval draft, please contact a Member Service Representative at 1-800-247-5626.

What does this mean? No income verification then?

Does the pre-approval draft they are mailing mean they are mailing a blank check that can be charged up to the approval amount and then when that is deposited by the seller of the car, then Penfed will send the documents to be signed online? Can they request POI then or she is out of the woods and should wait for the check and move on with the process?

Thanks

[Superduper2014]

Update 2

Finally she was able to talk to them. 

Apparently she just has to wait for the check and then use it to buy a car. 

She asked if she needed to send anything in or just wait for the check and they said nothing else is needed from her and she should just wait for the check. 

I guess that they did not ask for POI in this case or could she be asked to submit POI at the time they send the loan documents electronically after the check has been deposited by the private seller or dealer? 

Also her Fico was 738, tier 3. 

[CivalV]

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@Superduper2014 wrote:

Update 2

Finally she was able to talk to them. 

Apparently she just has to wait for the check and then use it to buy a car. 

She asked if she needed to send anything in or just wait for the check and they said nothing else is needed from her and she should just wait for the check. 

I guess that they did not ask for POI in this case or could she be asked to submit POI at the time they send the loan documents electronically after the check has been deposited by the private seller or dealer? 

Also her Fico was 738, tier 3. 

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That is awesome!! From those who I know personally have said that they walk into a dealership randomly, look at a car they want and then walk off the of the lot with it. No questions, no POI. I believe having the tier 3 score is a big factor. 

[Superduper2014]

So... Penfed did not require POI and they are sending a check for up to the approved amount. 

On the other hand, she applied also with DCU and they are requiring most current paystub and the rate is a just a bit better and the amount approved is the same. She had to sing up for DCU membership, whic I don't know what would be the benefit if she will choose Penfed in the end. 

Will she be able to use DCU's equifax hard pull to get a credit card or that is another pull? what is DCU good for ? thanks

[DaveInAZ]

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@Superduper2014 wrote:

So... Penfed did not require POI and they are sending a check for up to the approved amount. 

On the other hand, she applied also with DCU and they are requiring most current paystub and the rate is a just a bit better and the amount approved is the same. She had to sing up for DCU membership, whic I don't know what would be the benefit if she will choose Penfed in the end. 

Will she be able to use DCU's equifax hard pull to get a credit card or that is another pull? what is DCU good for ? thanks

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Sheesh, if I had to sing for a DCU membership I would have never gotten in, I can't carry a tune in a bucket! (Sorry, couldn't resist )

I don't believe DCU is a hard pull anymore just to join. I joined in Sept. 2017 and it was a HP but they used the same HP for my car loan. DCU's Platinum Visa is OK, no rewards but rate as low as 8.5% with no fee balance transfers & cash advances. I don't have one as I have one from my local credit union with low rate & no fee BT & CAs. Their savings account is great, 6.17% up to $1k balance, great for a rainy day stash.

[CJ7]

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@Superduper2014 wrote:

Apparently she just has to wait for the check and then use it to buy a car. 

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Sounds like everything worked out

[Anonymous]

So does Penfed ask for proof of income, I am in the same situation

Thanks