Vacation home mortgage (interest rate, approved, credit score, rate)

[okaydorothy]

Hi there\We are in the process of looking to buy a vacation home in PA. We live in NY now and have a few properties ; only one has no mortgage.

Are there still brokers who will do a no income check mortgage ; I am self employed, my dh isnt. Our credit is very good ; no late payments.

What is the rate on second homes and we are pressuming a 20% downpayment. The prices we are thinkning of are around $170,000 ; so it would be a mortgage of about $136,000. Taxes and hoa totals $3,000 per year.

Thanks
dor

[renriq02]

If you can put 20% down...720+ credit score....and have 2yrs of self employment ...YOU MAY qualify to state your income w/out verification.

What I mean by this is that the 'automated underwriting system' loves large downpayments and/or reserves.

I had a borrower who had 720...putting 20% down...and the Automated Underwriting System (AUS) said to ONLY verify EMPLOYMENT...not the income.
Verification of Employment can be done by w2's, tax returns, business licenses, paystubs, or over the phone.

My borrower was making 40k...and he had put 60k on the application.
He was going to receive a raise/promotion before the closing date.
The AUS said
"Use stated income for qualification and obtain verbal VOE or most recent YTD paystub to verify employment for XXXXXXX."
We were going 'full documentation'....the rate is the same.

This should apply to 2nd homes as well, but they do change guidelines....

[okaydorothy]

Our credit is above 800. so I am thinking that we may even be able to go stated.
that would give us a good interest rate i am thinking.

thanks
dorothy

[renriq02]

go full doc...you will get a better rate..and they wont verify your income with your scenario

[rcarrillo]

Originally Posted by renriq02

go full doc...you will get a better rate..and they wont verify your income with your scenario

That is usually true with 10% or greater down payment on a 2nd home. As long as an AUS sees you as a good credit risk and you do not exceed their guidelines on LTV.

Just make sure you are accurate on your work history, assets, debts and income. If you get reduced documentation, excellent.... you get a good rate and streamlined process. If you do not, then you may need to look at a larger down payment or other compensating factors.

[renriq02]

if she does it with a broker....he can find out if she's approved with a lender.
if they decline her he can go with another lender.

if you go to the local bank...you can't go full doc...and then go stated.

[okaydorothy]

Thanks for all your help. I will keep you updated.

dorothy

[Eddie k]

I am from Canada and i am looking to purchase in the South Beach Miami area. But need some help getting financed can any one help WITH ADVISE!!..... with or with out dwn pymt please contact me at ...call_cash@yahoo.com