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No Doc Mortgages for self employed?


No Doc Mortgages for self employed?

Hi All,


I'm new here and have found the info around here Amazing, Thanks.


My question is, are there such things as No Doc mortgages for self employed any more? My Fico's are TU 676/ EXP 694/ EQ734. with My CC util at 87%. I have just paid down My CC's to 37% this month and expect My low scores to reach the low 700's when the paydown is reported (fingers crossed). I also have a GW letter pending on a 3 yr old CO, this is the reason for the low TU and EXP scores.


The reason I'm asking is that I need $20,000 for an amicable divorce settellment, (kid's are grown). I went to My local bank, with whom I've had a good 18 yr relationship, for a second mortgage and was told that "Things are tight right now" and My debt to income ratio was to high (61%). My current Mort. is at 6.1% locked for 9 more yrs, owing 121k on an assessed value of 184k, with a recent appraised value of 210k. The high dti ratio is more from a bad income year in 07', then a lot of debt. 08' income is looking much better.


I checked with one of the few mortgage brokers left any more and went thru the cra pulls and underwriting program and was told that I could'nt get a second mort. with my dti ratio. He also said that I could refi for 9.5 and $2500 in fee's. That sounded like a recipe for a future foreclosure. My scores were also lower then, with a trimerge of 655.


I would like to keep the 6 yr old house as most of the equity is sweat, Mine.


Options, insight?   


Thank You again My Fico.  

Message Edited by halfast on 11-21-2008 07:03 AM
Message 1 of 5
Valued Contributor

Re: No Doc Mortgages for self employed?

The short answer is no they no longer exist.


The long answer is have you looked at the amount you can document off you taxes? You can build back into the amount any depreciation. That is what you will have to go off of - Your best bet is to look at doing a straight refi of the first as seconds are very TIGHT now - they are the ones hardest hit when values go down.

 If you use some extra equity to pay off all debt and eliminate the payments you may get the DTI in line?

Just a thought - hope something works out for you


Message Edited by BrianB_The_Loan_Professor on 11-21-2008 09:20 AM
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Brian B The Loan Professor
Mortgage Banker - offering FHA, VA, USDA , and Conventional mortgages in all 50 states -

If I do not respond to a follow up question please feel free to contact me directly
Message 2 of 5
Community Leader
Super Contributor

Re: No Doc Mortgages for self employed?

Also, you said your income this year is much better, 2009 is only 40 some odd days away, you can file your taxes in January, use an average of 07/08 and your DTI will drop, thus allowing you to do the refinance.  It's not right now, but the difference in terms (9.5% vs. in the 6's) is going to be worth waiting for.
Helping people with Mortgages (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
In Irvine, CA and lending in all 50 states

Information that is needed to determine if you qualify for a mortgage

Message 3 of 5

Re: No Doc Mortgages for self employed?

Hi All, just an update for the self employed. After beating My head against the wall for a year trying to get the money together for the divorce payoff, I walked into a CU in Dec 09', having never done business with them before.


I started a savings and business checking account and applied for an $18500 2nd Mortgage, "STATED" income, 724 TU, while the first mortgage was sitting at 65% LTV from asessed value, The $18500 2nd brought the total to 79% LTV. No appraisal was needed, property tax bill was enough.

I walked out 4 days later with a check for $18500 for 3yrs @5.5%, and settled the divorce.


I now believe in Credit Unions and My old 3 banks can kiss My A%$. I will still go fishing with one of My old bankers though, and BTW My TU is up to 764.


Thanks Myfico.

Message 4 of 5
Super Contributor

Re: No Doc Mortgages for self employed?

nice rate for a hard money loan


Retired Lender
Message 5 of 5