Help! We need a mortgage!!!!!

Casey

Casey

~*MrS. LuRz*~
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So here is the deal.... My fiance and I want to buy this house ASAP...$115,000 (yea it isnt a mansion....) But here is the deal:

1. He is Self-Employed
2. I am Commission Based

TWO STRIKES AND WE'RE OUT!

Basically the loan officer laughed at us...my fiance has been self employed for over a year and a half, I have been commission based for 6 months.
The loan officer said that you have to have 2 years of filing taxes as a SE individual and atleast 2 years commission based to even QUALIFY for a loan. Meaning we have to wait until he files taxes this year...which could end up being May with the extension... and then he said they wont even look at my income because I have not been commission based for 2 years. (He said that 2 years is the industry standard for SE and comm. and i have searched all over the internet and have found that same info)

Its not like we are asking for a 400k loan...and our combine income is 5k+ a month....I mean our payment would only be around $800 or $900 but they wont even consider us....I mean I understand the risk taking on a SE individual from the mortgage standpoint because the income isn't steady...but a person with a steady job could just as easily get fired in one day too and be out of work! ..... WHAT CAN WE DO???????

PS- both of our credit scores are OVER 700...we are very responsible...but we can't find a break!
 
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There are loans called "Income Stated" that do not require proof of income...Perfect for self employed, business owners etc...I have friends who have gotten this loan (this is in California)...So call around and ask for an Income Stated Loan.

I like eloan.com and ditech.com...You can do a lot online but still call customer service. Ask you local bank if they do these kind of loans or if they can refer you to someone who can.

Good luck!!
 
The Income Stated loans are good. You might even try chatting with a credit union. They are less greedy with their money.
 
I think a lot of income stated loans what to see about 10% down payment...But they all vary!!!
 
When I was 23 (many moons ago) and bought my first house I got a no income check mortgage without a problem. Don't banks offer these anymore?
 
talk to somebody else, I work as loan processor, if both of your income come from commision or self employed less than two year, all you need is the previous employment verification to make sure you two have been working continuously over two years. of course if your husband is self employed, heis going to need a business license. especially is if have over 700 credit scores.
 
Checky me email. Lots of mortgage offers :)
 
we got a no income check mortgage about 6 months ago. they exist. however, we had 20% equity in our home.
 
Did you talk to a mortgage broker? A broker, instead of talking to banks directly, tends to cater your needs, but there's a price to do it. But again, there are arguments that broker's fee is actually worth since you get wholesale rate which can be 1/8% to 1/4% less.

I learned a lot from Mortgage Professor http://www.mtgprofessor.com

Where is the house located, btw?
E-loan is good but to my experience didn't give you best rate, I got 0.625% lower than E-loan's by shopping around, with better terms!
 
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I'm not a fan or mortgage brokers unless your credit is really bad (which it is not). Try another bank or lender above. Good luck!:) I hope you get it :)

**All else fails.....got a relative willing to hold your mortgage or co-sign?
 
I like the approach of precocious, but most relatives that have that kind of "spare" $ free, they will usually have it invested making more % than a typical home loan.... If you have a couple of relatives that could "give" loan you (repayed with no interest) a couple of $ you may be able to get to the magic 20% number for a down payment. Some local banks will loan you the rest without much hassle, although it may not be the optimal interest rate.
 
Well I talked to a company and because he has been in the same line of work for 7 years with no breaks in employment and because I have been in my line of work for 5 years, they will qualify us..... my fiance's parents will cosign for us but the guy I talked to said there is no need with our good credit, besides he said something about if they cosign it will be considered thier 2nd home and would need 10% down...(??? I dunno) We do need 5% down for this loan and get this....we have to show proof that the 5% has been in our possession (bank/savings account) for over 60 days....if his parents lend us the money it will be considered gift funds and we can't use it cuz we cant show proof of posession...i actually heard this from both lenders I talked to today....Money is money! who cares where it came from???? anyone else have insight on this....
 
My hubby suggests that you show assets including 401ks or IRA balances. Then the lender won't care where the 5% money comes from.
 
Casey said:
Well I talked to a company and because he has been in the same line of work for 7 years with no breaks in employment and because I have been in my line of work for 5 years, they will qualify us..... my fiance's parents will cosign for us but the guy I talked to said there is no need with our good credit, besides he said something about if they cosign it will be considered thier 2nd home and would need 10% down...(??? I dunno) We do need 5% down for this loan and get this....we have to show proof that the 5% has been in our possession (bank/savings account) for over 60 days....if his parents lend us the money it will be considered gift funds and we can't use it cuz we cant show proof of posession...i actually heard this from both lenders I talked to today....Money is money! who cares where it came from???? anyone else have insight on this....
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Unless things have changed...you can get a 'gift' and apply it to your downpayment (I believe up to 10k per person, per year before taxes are involved) - We did a 'quiet loan' from my Mom and she gave us a 'gift note' for the bank purposes. Also, where we are, if you do not put down 20%, you must pay PMI (private mortgage insurance fee) until your principal balance equals 80%. (A legal scam by banks - if you can get 20%, get 20% down.)
 
precocious said:
Also, where we are, if you do not put down 20%, you must pay PMI (private mortgage insurance fee) until your principal balance equals 80%. (A legal scam by banks - if you can get 20%, get 20% down.)
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In most cases getting 20% down for first house is not easy, unless you have rich relatives. If the houses in your area appreciate fast enough (our house has appreciated almost 20% in 9 months!), PMI is not so bad, within a year or less you can get new appraisal and asked it to be removed. I've heard also talks are underway to make PMI tax deductible, which is the marketed benefit of having second loan for down payment. If you take second loan for down payment, don't overlook the interest rate, fixed or adjustable, penalty for paying early, etc.

Above all, if you haven't, you need to think added cost to decorate, maintenance, furniture, appliances, etc. Have you thought about ladder, paint, cleaning supplies, screwdriver, drill, security lights, bla bla bla. These little things do add up. If you've budgeted all these, multiply by 3-5X. Don't blow your credit cards by these. And don't start shopping until you close! Your credit may very well be checked again prior to closing.

The 60-day holding period is standard requirement but usually enforced if they're afraid that the money suddenly disappears just before the closing. You can ask your in-laws-to-be to get notarized note to guarantee funds and include their bank statements, if that will help.

Remember to fill as many "holes" as possible, as they do affect your rates. The more risky you are to a lender, the more they will charge you. They exist to profit, not to help you...
 
He3x said:
If the houses in your area appreciate fast enough (our house has appreciated almost 20% in 9 months!), PMI is not so bad, within a year or less you can get new appraisal and asked it to be removed. I've heard also talks are underway to make PMI tax deductible...
Click to expand...
"If" they appreciate fast enough - seems the trend is still in that direction....also, when we went to reappraise to get rid of the PMI (several years ago) the appraisal fee was over $300. We ended up not having it reappraised as it was cheaper to let the PMI run out on it's own...

Very good advice for the extras that add up very quickly, but don't let us scare you into changing your mind. The hardest part of homeowning is the first year. Once your over that hump, you breathe much more easily, especially when you see your tax return :) rule of thumb...1/3 of interest paid is returned....nice...beats renting ;)
 
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