no income/asset loan anymore? A+ credit (home loan, real estate, finance)

[Alexico]

I believe freddie mac had a conforming loan product like this for sometime

situation------
wanting to buy a Owner occ condo. I have up to 40% to put down if needed, A+ credit. no debt except 8k left on an auto loan. loan would be far below the $417k mark.

on conforming loans for someone who is commissioned underwriting will need to 2 full years of employment which I do not have yet as I switched careers. I am in finance and would be fine with a balloon/ARM if possible. I know exactly what Id be getting into.

Not really interested in a hard money loan....


suggestions. thanks

[SmartMoney]

I seriously think you may be SOL. I say this because HR 4173, aka Frank-Dodd Bill, now requires lenders to evaluate a borrower's credit worthiness to repay the loan. I fully don't expect to see No Doc again in my lifetime. We as a real estate community have many problems with this legislation as it was written, but I haven' theard anyone championing the case for a No Doc loan.

[chet everett]

The OP may be mistaken if they believe two years of continous employment with the same firm are mandatory. So long as they have tax returns that document a history or earnings that would qualify them for a loan being either a "job hopper" or enduring a bout of unemployment will NOT put you in the "unlendable" category.

I do agree with SmartMoney that the ridiculous lack of standards for "stated income" are gone and unlikely to ever come back -- the small number of folks who legitimately had abnormally spiky income were far out numbered by scammers of all stripes.

[Alexico]

Originally Posted by chet everett

The OP may be mistaken if they believe two years of continous employment with the same firm are mandatory. So long as they have tax returns that document a history or earnings that would qualify them for a loan being either a "job hopper" or enduring a bout of unemployment will NOT put you in the "unlendable" category.

I do agree with SmartMoney that the ridiculous lack of standards for "stated income" are gone and unlikely to ever come back -- the small number of folks who legitimately had abnormally spiky income were far out numbered by scammers of all stripes.

that is my issue----2 years of continued income.----in 2010 my self employement (more of a partnership than being self employed) but my K1 show a loss.

2004 -june 2008 solid income same line of work

June 2008-june 2010 K1 income/showing losses****

Back to a commission sales which I am doing great. but only been doing this since Nov.

[frankrj]

income showing losses is not good to underwriters unless they worked with Madoff or use 2005 u/w standards. If you can wait out another year and then show 2 years there may be a loan for you. BTW, stated income home loans do still exist. they are far and few between but a few niche loan officers do have it.

I've seen updates on blogs but not sure if they are closing but they are advertised with 40% down or more standards. I, am actually looking for a loan after having a short sale a couple years back. We'll see how that works. What troubles me still are some companies are still doing 10% down loans with full documentation and only 3 months of the house payment in the bank. I think it should be 6 months but I am not a rule maker. But, I mean c'mon we all know what happened why in hell is the state attorney general letting this go on. I don't care if it is private lending unless it makes a big difference.