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Old 02-16-2009, 09:08 PM
 
Location: Nevada/Hawaii
326 posts, read 1,195,836 times
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I am self-employed having purchased an established business(16 yrs) in February of last year. I am looking at homes in the 225/250 price range with 100K down. I have no debt and own all my toys outright. I keep getting turned down due to being self-employed and/or not having two years tax returns.
Have I just not found the right lender yet or am I wasting my time trying?
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Old 02-16-2009, 09:13 PM
 
Location: central, between Pepe's Tacos and Roberto's
2,086 posts, read 6,097,275 times
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Quote:
Originally Posted by WestcoastBrit View Post
I am self-employed having purchased an established business(16 yrs) in February of last year. I am looking at homes in the 225/250 price range with 100K down. I have no debt and own all my toys outright. I keep getting turned down due to being self-employed and/or not having two years tax returns.
Have I just not found the right lender yet or am I wasting my time trying?
No conventional lender will do this without 2 years of tax returns. If you absolutely must buy a home now, look into a hard money loan. Strictly equity based lending, but very expensive. It is a short term solution for those usually in some type of dire situation.
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Old 02-16-2009, 09:30 PM
 
Location: Your Mom's House
1,251 posts, read 3,059,042 times
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IMO, you'd have to be completely insane to put down $100K of cold hard cash on a home right now when you could turn around & lose it all.

Homeownership is a BIG gamble right now. If I were you, I'd rent for the time being & hold onto your money. See where all this is headed.
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Old 02-16-2009, 09:59 PM
 
Location: Atlanta, GA
331 posts, read 623,041 times
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You will be hard presses to find a 'normal' loan through traditional means.....you might want to take your 100k and stuff it under your mattress for awhile.....or go with some severe bargain hunting...
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Old 02-16-2009, 10:03 PM
 
Location: Long Island,New York
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There are still companies that do no income check loans,also if you are a veteran VA loans are still good options.
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Old 02-16-2009, 10:29 PM
 
7,099 posts, read 23,889,158 times
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I think you could probably find a house where the owner is willing to finance, especially when they would be looking at that much down payment.

I agree, putting that much down on a house in that price range is foolish. Suppose you find out that you just can't stand the neighborhood?

That down payment may hamper your getting a loan. It could be a red flag that something is amiss. for that price house, it would be most unusual. Not many people would do it. See if you can swing a deal with a more conventional down payment (20%) then, later you can refinance using the rest of your money. That's just my opinion, it's probably worthless, but think how what you want to do would sound to the average loan officer.
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Old 02-16-2009, 10:32 PM
 
Location: Long Island,New York
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Like I said before with the right amount down you should have no problem finding a broker or bank that does a no income check loan if you have a good credit score.
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Old 02-16-2009, 11:32 PM
 
Location: USA
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Being self-employed might be what the problem is. Lenders would rather see borrowers have a steady W-2 job than be self-employed. I think they see self-employment as more risky.

As far as putting a large chunk down on a home, I'd say do it if it would significantly lower your monthly payment. My wife and I put $75K down on a $225K home recently. Doing that gave us a monthly payment that is right around 10% of our gross monthly income, so if one of us loses a job, we'll still be able to make our mortgage payment without having to go hungry.
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Old 02-16-2009, 11:44 PM
 
Location: central, between Pepe's Tacos and Roberto's
2,086 posts, read 6,097,275 times
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Quote:
Originally Posted by Lancet71 View Post
There are still companies that do no income check loans,also if you are a veteran VA loans are still good options.
VA does not do stated income loans. They are full documentation and the 2 year rule for self employed does stand.

There may be a couple of portfolio lenders that I am not aware of that still do no income verification loans, but they will be very few and far between.
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Old 02-16-2009, 11:45 PM
 
Location: Nevada/Hawaii
326 posts, read 1,195,836 times
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Thank you all. The reason I'm putting 100K down is because my income is in the 50K mark and figure I won't get more than 130/140 to borrow. I've lived in the neighborhood for a year now and like it here, trouble is the homes start at about 220 and up. I really don't want to rent a house for $1600/1700 a month when I could have $1100/1200 mortgage payments instead.
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