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On the one hand, their is OVER REACTION on the part of lenders that used to specialize in stated income loans, but the reality is that MANY such sources of lending are literally GONE. As in no funds, no employees no NOTHING...
If you have a legitimate business that does throw off revenue that you choose NOT to convert to income you really have to build a relationship with a banker that understand this and will serve both your personal and business needs.
If you have a legitimate business that does throw off revenue that you choose NOT to convert to income you really have to build a relationship with a banker that understand this and will serve both your personal and business needs.
A few decades ago Chicago had a plethora of locally owned midsized banks. These were places that generally had a real "banker" that truly ran the place and really did bounce ideas off other real business people.
The majority of such places have been merged out of existence. A handful of the people that used to work at such places have found jobs in "private banking" or "wealth management".
Most credit unions are consumer oriented, in that they do not try overly hard to stick it to the customers, but they wholesale out their loans just like the bigger banks. I suppose there are exceptions and regional differences, but the thing you need to find is a real bank that really has bankers running the place. Any place that is run by a "Corporate Handbook of Policies" is not going to be any good to you, and frankly even some small "family run" banks may be in no position to lend to you unless the size of your "tax advantaged" funds is truly mind boggling large in relation to your debt AND you figure out a way to get them managing the enormous horde of dough...
You did not answer the question of 'how are you going to make the payments'????
If you have a reliable source of income that the secondary market won't count, you should work with your current bank (or CU) on getting approved. It would be probably be a portfolio loan with a shorter fixed term and higher interest rate. I am doing a mortgage right now on a borrower who's income doesn't count as far as Fannie & Freddie are concerned, but we have approved the deal in house.
A few decades ago Chicago had a plethora of locally owned midsized banks. These were places that generally had a real "banker" that truly ran the place and really did bounce ideas off other real business people.
The majority of such places have been merged out of existence. A handful of the people that used to work at such places have found jobs in "private banking" or "wealth management".
Most credit unions are consumer oriented, in that they do not try overly hard to stick it to the customers, but they wholesale out their loans just like the bigger banks. I suppose there are exceptions and regional differences, but the thing you need to find is a real bank that really has bankers running the place. Any place that is run by a "Corporate Handbook of Policies" is not going to be any good to you, and frankly even some small "family run" banks may be in no position to lend to you unless the size of your "tax advantaged" funds is truly mind boggling large in relation to your debt AND you figure out a way to get them managing the enormous horde of dough...
Chet is dead on. A family run Community Bank with 'real bankers' makes it's own decisions. I have seen full mortgage approvals in less than one minute. There are still a few places that know their customers.
How does one obtain a mortgage with 25% down, sufficient reserve, but no income?
If you don't care about getting a 12% w/ 4 points, and you can come up with another 10% down, then you can get a hard money loan. Otherwise, you may want to look for a seller carry loan.
Some folks need to look into other ways of home ownership. Things like building with cash, sweat equity, land contracts , there are a lot of ways to make it work, problem , most of these take a long time.... I am building my retirement home , with cash...three years and not done yet., but , I am living in it !... It also helps if you have the time and skill to do a lot of the work yourself.... The only mortage I will look at , in a few years...will be a reverse one.
Timid,
If you are serious about homeownership, then you can perhaps convinced a lender without income by placing the full-purchase price in a staggered and revolving CD account. You will earn 2% now and down the road probably 4%. If you can place this account into a kind of escrow that is dedicated to the loan, then you would get some leverage and now give up the interest come completely. I have seen banks in Europe require monies in escrow to secure a transaction. From there, it should not be too difficult for an account that actually earns interest.
You would probably need to go to a local bank which might appreciate the transaction and is willing to keep this loan on its books.
However, if this loan is destined for the secondary markets, forget it. Zero income means HUGE risks. Even if you to put a huge % down, you would be a risk.
Are you averse to working? Having a full time job would help !!
All else fails? Buy the house with cash. Better yet, RENT!
You should be able to get a loan based on your portfolio and annuity payments.
My experience is that the lender will take the past 2 years of income from either of them and average them. Then you will have to show that the income from both should last 3 years in the future. Annuity payments are easier of course, but you should be able to get what you need this way
These loans are sort of "outside the box" and a lot of brokers/banks don't want to fool with these type loans
Its all about expousure as far as the Bankers are consirned. These days , the problem is even much larger. Most bankers are gun shy when it comes to anything thats outside the box. Secondly , should you be able to float somthing special , ...look for the Banker to sell it before the ink is dry...yes its all about expousure no one wants any...these days.
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Not necessarily...
There are still a few places that know their customers.
