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Old 04-15-2013, 07:09 PM
 
Location: I live wherever I am.
1,934 posts, read 4,148,322 times
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At the behest of another poster on another similar thread I posted (supposedly in the wrong area), I am posting this here.

I got a couple of stated income / low-doc mortgages in 2005-2007 and they were great. I bought within my means and never had problems. Then I heard that they went away.

It's possible that my wife and I will want to buy a house at a time when we'll be in a situation where the documentation we have is not going to look good... though we will still be able to afford, easily, the type of house we'd buy.

We're going on tour as musicians next month, for an indeterminate amount of time. We're going to be relinquishing our currently rented house and living in our RV. There will be TONS of tax deductions. The way I see it, we'll be able to live reasonably comfortably while doing this, and pay next to nothing in taxes because of all the deductions we'll be able to take. Last time I tried getting a mortgage when I had lots of tax deductions, the lady told me I couldn't afford anything (despite how, I guess "miraculously", I was making $1,200/month rent payments on time every month and could prove that!). I'm looking to see if there are any options that we might do well to take, if/when we decide to go off the road and settle down. (If we do it prior to tax season in early 2014, our 2011 and 2012 tax returns will show that we're doing fine... unless they'd ding us for wanting to move to a totally different area. If we wait longer than that, we may be in trouble unless there are unconventional mortgages out there...)

Are there still any mortgage options that don't require you to show tax returns - or, at least, don't require a certain debt to income ratio based upon tax return income shown after deductions? Anyone who is in business knows that you can often deduct more than your actual dollar costs for certain things... and who wouldn't want to take advantage of every legal opportunity to prevent the government from legally robbing you of the fruits of your labor? My credit score is near 800, my wife's is over 700, we're open to 20%+ down payment options... we're willing to be creative to get what we need. We just don't want to rent, when it gets to the point that we decide to settle down. We're sick of renting - I've been renting for almost 5 years now.

Basically, I want a small mortgage that's easy to get and they don't regurgitate a bunch of garbage about new government regulations. Surely SOMEWHERE there has to be a lending institution that isn't beholden to Fannie Mae or Freddie Mac in any way.

What do you think?
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Old 04-15-2013, 07:31 PM
 
Location: A Very Naughtytown In Northwestern Montanifornia U.S.A.
1,088 posts, read 1,724,028 times
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Quote:
Originally Posted by RomaniGypsy View Post
I got a couple of stated income / low-doc mortgages in 2005-2007 and they were great. I bought within my means and never had problems. Then I heard that they went away.
It's possible that my wife and I will want to buy a house at a time when we'll be in a situation where the documentation we have is not going to look good... though we will still be able to afford, easily, the type of house we'd buy.
Are there still any mortgage options that don't require you to show tax returns - or, at least, don't require a certain debt to income ratio based upon tax return income shown after deductions?
Basically, I want a small mortgage that's easy to get and they don't regurgitate a bunch of garbage about new government regulations. Surely SOMEWHERE there has to be a lending institution that isn't beholden to Fannie Mae or Freddie Mac in any way.
What do you think?
I think that the banks will make you jump through all the hoops you want to avoid and you won't get a loan.
Just wondering what happened to the place you got your other mortgage on ?
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Old 04-15-2013, 07:38 PM
 
Location: Texas
5,721 posts, read 15,280,958 times
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You're looking for a No Docs Loan. They're still out there. You can get as low as 30% down if you look around. You're going to find these types of loans at financial institutions and they are not Gov't guaranteed. The money comes from the private investor sector.
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Old 04-15-2013, 08:20 PM
 
Location: I live wherever I am.
1,934 posts, read 4,148,322 times
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Quote:
Originally Posted by DontLookPhoto View Post
I think that the banks will make you jump through all the hoops you want to avoid and you won't get a loan.
Just wondering what happened to the place you got your other mortgage on ?
I sold it when I moved to Texas.

Quote:
Originally Posted by TrapperL View Post
You're looking for a No Docs Loan. They're still out there. You can get as low as 30% down if you look around. You're going to find these types of loans at financial institutions and they are not Gov't guaranteed. The money comes from the private investor sector.
I don't mind 30% down. We'll be buying a house that's cheap enough that 30% down won't be much pain. When you say "financial institutions", do you mean banks, credit unions, venture capital firms, etc? (You can tell I don't know much about finance.)
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Old 04-15-2013, 08:58 PM
 
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It's hard to tell what will be available in 2014. I too got a no doc loan in 2006 and everything worked out fine. If you are buying a place you can afford and have a large down, that does mitigate the risk quite a bit. I don't doubt you'll find someone to lend you money with 30% down
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Old 04-15-2013, 09:38 PM
 
3,806 posts, read 8,390,786 times
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By way of example, a company I use offers about 9% on a 7/23 (Fixed only for the first 7 years), with 30% down. That's true SISA - Stated Income, Stated Assets.

You might go with the Bank Statements route. Slightly better. But I'm hopeful that the over-correction that precludes truly, verifiably self-employed borrowers from getting a loan from traditional banks eases.
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Old 04-16-2013, 06:35 PM
 
Location: I live wherever I am.
1,934 posts, read 4,148,322 times
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Quote:
Originally Posted by Pfhtex View Post
By way of example, a company I use offers about 9% on a 7/23 (Fixed only for the first 7 years), with 30% down. That's true SISA - Stated Income, Stated Assets.

You might go with the Bank Statements route. Slightly better. But I'm hopeful that the over-correction that precludes truly, verifiably self-employed borrowers from getting a loan from traditional banks eases.
Can the terms be better with bank statements? By that I mean lower down payment, lower interest rate, lower closing costs, etc.
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Old 04-17-2013, 12:54 PM
 
3,806 posts, read 8,390,786 times
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Yes, if you go more alt-doc, with bank statements, it would be better, but not a home run by any means, still up in the 8%s.

Now if the house is a steal, and you plan on preparing tax returns in such a way as to qualify for conventional financing in a year or two, and would refi, then it might be worth it.

I'd just rent if I were you. Rent and file taxes so that you qualify in the future.
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Old 04-18-2013, 09:47 AM
 
Location: I live wherever I am.
1,934 posts, read 4,148,322 times
Reputation: 3273
Quote:
Originally Posted by Pfhtex View Post
Yes, if you go more alt-doc, with bank statements, it would be better, but not a home run by any means, still up in the 8%s.

Now if the house is a steal, and you plan on preparing tax returns in such a way as to qualify for conventional financing in a year or two, and would refi, then it might be worth it.

I'd just rent if I were you. Rent and file taxes so that you qualify in the future.
Renting isn't happening. We'd sooner live in our RV long-term at an RV park than to rent someone else's house. Renting is a pain in the butt and it's more expensive than buying.
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Old 04-18-2013, 07:31 PM
 
3,806 posts, read 8,390,786 times
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If paying 30% down, and 9% on a 7-year fixed term is less expensive, financially and psychologically, than renting, then you must really dislike renting. Do what you gotta do.
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